The automated "investor" possible with the help of AI and unlimited computation?
Whether cryptoland is in a bubble is important but more important is the possible solution. Humans can in the future delegate their investment decision authority to a smart contract which can access the necessary computation to utilize AI to automate the process of populating a portfolio. The AI will learn from every trade, and will be able to participate in ICOs by the hundreds, in a matter of minutes, as it will be able to search for them.
How far away are we from the automated investment manager?
I can speculate that this is less than five years away. The technology exists to create something like it today. Ethereum has the smart contract element, but lacks the AI element. The computation element might work via iEx.ec and or Golem. This would allow for a server farm of computers to calculate the big data analysis and learn from thousands or millions of trades, examples, outcomes, etc.
What do you all think of this possibility happening in the next 5 years? Actually, knowing cryptoland, it could happen much sooner. Now you know why I'm so bullish on RLC and anything connected to AI and or computation resources. Evolutionary computation, and NNs, can allow for a smart contract to use "survival of the fittest" ideology for measuring the fitness of smart contracts, or portfolio manager smart contracts. If fitness of a portfolio manager is measured by how much profit it brings back to it's token holders then both humans and AI can easily see which ones to "reproduce".
References
- Rokade, A., Malhotra, A., & Wanchoo, A. (2016, May). Enhancing portfolio returns by identifying high growth companies in Indian stock market using artificial intelligence. In Recent Trends in Electronics, Information & Communication Technology (RTEICT), IEEE International Conference on (pp. 262-266). IEEE.
- Soni, N., & Kumar, T. (2016). Optimum hedging tool of portfolio management using artificial intelligence and cloud computing in Indian stock market. International Journal of Computer Science and Information Security, 14(11), 1013.
- Chen, C. H., Lin, C. B., & Chen, C. C. (2015, May). Mining group stock portfolio by using grouping genetic algorithms. In Evolutionary Computation (CEC), 2015 IEEE Congress on (pp. 738-743). IEEE.
- Pedersen, M. E. H. (2016). Artificial Intelligence for Long-Term Investing.
AI is much ahead, and It will mostly dominate digital currency , as fundamentals are stitched together by computed algorithms, that goes down to 1 and 0, without human feelings and brain fatigue in the equation.
But if everyone is using off the shelf AI & use 'pooled' trading by then will there be any profit at all?
I have a feeling equilibrium will be established in no time..
This was cool