Journal of Korea Society of Industrial Information Systems (한국산업정보학회논문지)

Korea Society of Industrial Information Systems (한국산업정보학회)
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Bitcoin Price Forecasting Using Neural Decomposition and Deep Learning

  • Ramadhani, Adyan Marendra (Dept. of Management Information Systems, College of Business Administration, Dong-A University) ;
  • Kim, Na Rang (Dept. of Management Information Systems, College of Business Administration, Dong-A University) ;
  • Lee, Tai Hun (Dong-A University Research Foundation for Industry-academy Cooperation) ;
  • Ryu, Seung Eui (Dept. of Management Information Systems, College of Business Administration, Dong-A University)
  • Received : 2018.05.27
  • Accepted : 2018.08.17
  • Published : 2018.08.31
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Abstract

Bitcoin is a cryptographic digital currency and has been given a significant amount of attention in literature since it was first introduced by Satoshi Nakamoto in 2009. It has become an outstanding digital currency with a current market capitalization of approximately $60 billion. By 2019, it is expected to have over 5 million users. Nowadays, investing in Bitcoin is popular, and along with the advantages and disadvantages of Bitcoin, learning how to forecast is important for investors in their decision-making so that they are able to anticipate problems and earn a profit. However, most investors are reluctant to invest in bitcoin because it often fluctuates and is unpredictable, which may cost a lot of money. In this paper, we focus on solving the Bitcoin forecasting prediction problem based on deep learning structures and neural decomposition. First, we propose a deep learning-based framework for the bitcoin forecasting problem with deep feed forward neural network. Forecasting is a time-dependent data type; thus, to extract the information from the data requires decomposition as the feature extraction technique. Based on the results of the experiment, the use of neural decomposition and deep neural networks allows for accurate predictions of around 89%.

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References

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