Disclaimer: The material in this file is purely educational and should not be taken as professional investment advice. Invest at your own discretion.
It is extremely hard to try and predict the direction of the stock market and stock price, but I will give it a try. Even people with a good understanding of statistics and probabilities have a hard time doing this. So, please keep this in mind while reading through this article. In this article I will show you how to build your own Python program to predict the price of Bitcoin (BTC) using a machine learning technique called Support Vector Machine. So you can start trading and making money ! Actually this program is really simple and I doubt any major profit will be made from this program, but it may be slightly better than guessing! In the program we will use the Support Vector Regression function which is a type of Support Vector Machine. A Support Vector Regression (SVR) is a type of supervised learning algorithm that analyzes data for regression analysis. In 1996, this version of SVM for regression was proposed by Christopher J. C. Burges, Vladimir N. Vapnik, Harris Drucker, Alexander J. Smola and Linda Kaufman. The model produced by SVR depends only on a subset of the training data, because the cost function for building the model ignores any training data close to the model prediction.
Support Vector Machine Pros: It is effective in high dimensional spaces. It works well with clear margin of separation. It is effective in cases where number of dimensions is greater than the number of samples.
Support Vector Machine Regression Cons: It does not perform well, when we have large data set. Low performance if the data set is noisy ( a large amount of additional meaningless information).
Types Of Kernel: linear polynomial radial basis function (rbf) sigmoid
What Is Bitcoin And Who Created It ? Bitcoin is a digital currency and a payment system invented by an unknown group or person by the name Satoshi Nakamoto , who published the invention in 2008 and released it as open source software in 2009. It is the first decentralized digital currency, meaning the system works without a single administrator or central bank, you can use them in every country, your account cannot be frozen, and there are no prerequisites or limits .
Bitcoins are transferred directly from person to person, also known as peer to peer. The cryptographic transactions are verified by a network of people and recorded in a public distributed ledger called the block chain . Note that once a payment is made it can’t be reversed, and if you lose your wallet, you lose your bitcoins.
How Much Is One Bitcoin Worth ? Bitcoin is very volatile, the price of one bitcoin is liable to change rapidly and unpredictably. Earlier in January 2017 one bitcoin was equivalent to $985 USD. If you had invested $100 USD in 2010, you would be worth about $72 million USD as of (12/21/2017).