The Convergence of Artificial Intelligence and Cryptocurrencies

Abstract

Artificial intelligence (AI) is having an increasingly significant impact on the cryptocurrency financial sector, particularly on the best-known cryptocurrency, Bitcoin, which has become a very important type of investment. This has accelerated the need to develop advanced AI techniques to address issues such as price forecasting, portfolio management and fraud detection. Today, the fundamental tools for reducing investment risks, predicting market trends, building portfolios and detecting fraud are artificial intelligence and machine learning techniques, including tools such as Support Vector Machine (SVM), Artificial Neural Network (ANN) and Long Short Term Memory (LSTM). This paper analyses the convergence between AI and cryptocurrencies, focusing on innovative applications and risks such as technological obsolescence, ethical issues, algorithmic opacity, volatility, and cybersecurity. Special attention is given to European regulation, in particular the AI Act, which aims to ensure responsible AI development while protecting rights and financial stability.