What Open AI’s Chatbot thinks about cryptocurrency

What Open AI’s Chatbot thinks about cryptocurrency

One of the benefits of living in Los Angeles is the easy access to great hiking trails. Within 30 minutes (assuming you’re not trying during rush hour, which is the key here) it’s possible to disconnect from La La Land on a canyon or ridge trail with only occasional interruptions from a hiking buddy and/or exercise flu. Here, conversations can flow freely, punctuated by the occasional Google fact check when the mobile service allows it.

“Do you think ChatGPT will replace your role?” I asked my computer scientist friend, who works for a large tech company in the midst of layoffs. “No, my job requires too much specific context,” she replied tersely, acknowledging the protective barriers and moats created by proprietary corporate data sets.

You read Crypto long and shortour weekly newsletter with insights, news and analysis for the professional investor. sign up here to get it in your inbox every Wednesday.

Anyway, what does ChatGPT think about crypto – and does that thinking pose a threat to investment writers and strategists?

Let’s make an assumption: Its views should reflect the “average” perception of the information and sentiment embedded in the data sources it was trained on. The AI ​​bot should provide some sense of the consensus view of digital assets, a collective zeitgeist constructed from an advanced statistical exercise.

Or at least that’s the idea. I decided to find out what ChatGPT thinks.

Questions: Explain bitcoin to a high school student.

ChatGPT: Bitcoin is a type of digital money that people can use to buy things online. But instead of being printed or minted like traditional money, they are created using computer code and stored in a public ledger called the blockchain.

See also  5 New Best Crypto ICOs to Invest in 2023

Bitcoin is different from regular money because it is decentralized, meaning it is not controlled by any government or financial institution. Transactions are processed directly between users without the need for intermediaries such as banks or credit card companies.

Because [b]itcoin is decentralized, it offers a level of privacy and security that traditional financial systems cannot match. However, its value can be volatile and there are risks associated with investing in it.

All in all, [b]itcoin represents a new way of trading and storing value digitally, and is seen by some as a potential hedge against inflation or as a store of value like gold.

Decentralization, disintermediation, store of value, not controlled by any government, like gold – all common and consistent themes that support the bitcoin narrative. Let’s continue:

Questions: Are cryptocurrencies useful? Please explain in simple terms.

ChatGPT: Cryptocurrencies can be useful for several reasons. Here are some of the most common:

Decentralization: Cryptocurrencies that [b]itcoin and [ether] are decentralized, meaning they are not controlled by any central authority or government. This can make transactions faster, cheaper and more secure.

Global Access: Cryptocurrencies can be accessed and used by anyone with an internet connection, regardless of where they are in the world. This can be particularly useful for people who do not have access to traditional banking systems or for cross-border transactions.

Transparency: Cryptocurrency transactions are recorded in a public ledger called the blockchain, meaning they are transparent and verifiable by anyone. This can increase trust and reduce the risk of fraud.

Programmability: Some cryptocurrencies like [ether] allow developers to create decentralized applications that can run on the blockchain. These applications can be used for a wide variety of purposes, including finance, gaming, voting and supply chain management.

See also  Crypto projects raise $30.2 billion in H1 2022, surpassing total raised in all of 2021

However, it is important to keep in mind that cryptocurrencies are still a relatively new technology and are subject to high volatility and regulatory uncertainty. In addition, cryptocurrencies are not yet widely accepted as a form of payment and may not be suitable for everyone. As with any investment or financial decision, it is important to do your own research and consider your individual circumstances before investing in cryptocurrencies.

It sang a similar song about decentralization, disintermediation and transparency, albeit with an inclusion of smart contracts, a global perspective and a healthy disclaimer of financial risk. It’s useful to remember that ChatGPT’s training data included information up to September 2021, coincidentally around the peak of the last bull market. A quick message about “What is FTX and who is Sam Bankman-Fried?” confirms lack of awareness of, well, you know what happened a few months ago.

ChatGPT’s reference to the global nature of cryptocurrencies is a good reminder that digital assets facilitate cross-border money transfers and provide a decentralized and reliable open source alternative for regional or local financial services and infrastructure. It’s all too easy to overlook these critical use cases, because people like me mostly take them for granted as part of modern life in a developed economy, absent the rare banking crisis. Preference for this more mundane use case can be clearly seen when comparing Google Trend search data for Bitcoin versus Ethereum (see below).

Here, the search activity for Bitcoin and Ethereum has been combined to create a relative relationship between activity, with the intention of providing user interest. A value of 1 suggests that an equal amount of search activity in a country is spread across Bitcoin and Ethereum; 10 means 10 times more searches for Bitcoin than Ethereum. Given that BTC currently has about 2.3 times the market capitalization of ETH, it is not surprising that no ratio in the chart above is much below this figure. Switzerland at 2.3 is neutral (as usual), also in line with market value expectations.

See also  Crypto-Friendly Travel Company launches new program for Shiba Inu (SHIB) owners

Russia, Egypt and Nigeria show significantly more interest in bitcoin than ether, while Serbia, China and Switzerland (the Ethereum Foundation is based in Switzerland) are relatively more interested in Ethereum. From a look at the countries at the top and bottom of the search activity shelves for bitcoin/ether, we can conclude that developing and frontier economies are more focused on value storage and decentralized payment systems, while developed economies are more interested in refining and upgrading existing financial technology infrastructure via blockchain rails and smart contract platforms.

Just as we ask ChatGPT for answers, we receive requests for new questions and analysis. Who is really asking whom?

Questions: Will AI replace investment analysts? Please reply to the haiku

ChatGPT: AI helps analysis,

But cannot replace the skills,

From CoinDesk Deputy Editor-in-Chief Nick Baker, here’s some news worth reading:

To hear more analysis, click here for CoinDesk’s “Markets Daily Crypto Roundup” podcast.

You may also like...

Leave a Reply

Your email address will not be published. Required fields are marked *