'At the Disrupt Berlin hackathon developers presented an app which leverages machine learning to monitor bitcoin markets and news and social media platforms, to give early warning of impending volatility.
Bitcoin Bubble Burst watches for price changes and major news events that could impact cryptocurrency markets and provides real time alerts to users. There are multiple existing apps that warn of such changes but none that flag impending volatility in exactly the same way, using machine learning algorithms that have been specifically trained using bitcoin price change data sets.
"All it would take would be one terrorist incident in the U.S. funded by bitcoin for the U.S. regulator to much more seriously step in and take action," UBS Group AG Chief Investment Officer Mark Haefele said, as cited by Bloomberg.
Investment banks the world over have toyed with the idea of betting big on cryptocurrencies, but even the overwhelming processing power of their algorithmic traders has yet to convince them the cryptomarkets are worth the risk.
News items covered by such predictive apps might include national bans on bitcoin and taxation proposals for cryptocurrency trading and will trigger an automated email once the aggregated news passes a certain threshold of importance and frequency of reporting – meaning, theoretically, users of the app won't be notification bombed.
Bitcoin Bubble Burst’s creators are careful about the nature of the alerts they send and allegedly won't just send non-stop sell order advice, though critics might point out there is far too much potential for abuse or market manipulation were such apps to be adopted worldwide.'
Read More: Bitcoin crashing? App aims to flag crypto price dives before they happen