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Fruit Fly Brain Simulation Trades Bitcoin with Modest Gain

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A digital simulation of a fruit fly's brain has successfully traded Bitcoin and achieved a modest gain. The experiment, conducted by Coinbase software engineer Alex Wormuth, utilized a highly detailed model of an adult male fruit fly's nervous system, which is based on recent neuroscience research. The project, called 'Stonkfly,' uses real-time BTC-USDC market data from Coinbase to simulate how the insect would perceive visual information.

The simulation, which maps live Bitcoin price data to simulated sensory input, triggered a $1 profit after one day of trading. However, Wormuth notes that this gain is likely due to chance rather than consistent learning, as the system's trading decisions are closely linked to market shifts and randomness in its simulated neural responses.

The project, which uses the entire adult fruit fly connectome, has sparked interest in the potential applications of neuroscience in finance. While the current system lacks reliable learning or decision-making autonomy, it demonstrates a novel approach to using AI in trading.

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