We Asked ChatGPT About Its Impact On Crypto: AI in Crypto
With the ever-developing technology, AI this and AI that, we’ve decided to hop on the trend and discuss the potential use of AI within crypto.
And what better way to do it, other than ask the AI itself?
So we did exactly that.
The AI we’ve decided to get into our interrogation room is the one whose name has been on everyone’s lips lately, namely ChatGPT. Yes, the one that everyone fears will steal their jobs.
Disclaimer: we’ve chatted with ChatGPT3, not the latest version of the program, ChatGPT4. ChatGPT3 is limited to a database that goes up until September of 2021 and does not have direct access to the internet.
Let’s get to it!
Here’s What ChatGPT Said On Its Impact On Crypto
To give you what you came here for, here’s chatGPT’s answer to the question of: Do you think ChatGPT will have an impact on crypto?
ChatGPT’s answer: As an AI language model, I don’t have the ability to directly impact the crypto industry on my own. However, I can provide information and insights that may be useful to people who are interested in crypto. For example, I can answer questions about cryptocurrency, blockchain technology, and related topics, and provide analysis based on available data and trends. In that sense, I may indirectly help people make informed decisions related to the crypto industry. But ultimately, it’s up to people to decide how they want to use the information I provide.
And of course, as expected, the answer is quite generic and calculated. For example, ChatGPT says that it can provide an analysis based on the available data and trends, and can answer crypto-related questions, which in turn may indirectly help people make informed decisions related to the crypto industry.
But then of course right aways says that it’s ultimately up to the people to make the final decision, playing it safe.
Our main question is: will it actually be able to help us make informed decisions if we still have to fact-check every sentence it produces?
Since the data ChatGPT has access to is limited, how can it actually give us useful answers within such an ever-changing industry like crypto.
Our Opinion
We think that it’s still too early to use tools like ChatGPT for crypto-related issues, unless you use it for learning while fact-checking everything it says.
ChatGPT On AI’s In General Impact On Crypto
But we didn’t end the experiment there and decided to ask ChatGPT one more question about AI’s in general impact on crypto.
So we gave it the following prompt: Do you think AI will affect crypto?
And ChatGPT said: Yes, I believe that AI will have an impact on the world of cryptocurrency.
One way that AI could affect cryptocurrency is through trading. With the increasing popularity of automated trading algorithms, AI could be used to analyze large amounts of data and make predictions about market trends and fluctuations. This could potentially result in more efficient and profitable trading for investors.
Another way AI could impact cryptocurrency is in the area of security. Cryptocurrency exchanges and wallets are vulnerable to hacking and other forms of cyber attacks, and AI could be used to enhance security measures and detect fraudulent activities.
Furthermore, blockchain technology that underpins many cryptocurrencies can benefit from AI as well. AI can be used to optimize blockchain transactions and enhance their speed, as well as increase the scalability of blockchain networks.
Overall, AI has the potential to greatly impact the cryptocurrency industry in various ways, and it will be interesting to see how these two fields develop and evolve together in the coming years.
In the answer to this question, ChatGPT listed three main areas in which AI could have an impact on the crypto world, and those are trading, security, and blockchain.
So now, we’ll take our time to juxtapose these statements with our opinion on AI in crypto and how Chat’s view on AI matches with ours.
AI in Crypto: Possible Uses
We’ve put our thinking hats on and thought of a few ways in which AI could impact the crypto industry.
What we came up with is not actually that different from what ChatGPT said, despite its widely-known pathological liar tendencies whenever it doesn’t have something in its database. *cough* Insert the recent defamation lawsuits against OpenAI here *cough*.
But all jokes aside, ChatGPT wasn’t so far from our predictions.
We believe that AI may actually impact the crypto world in the following two ways:
- price prediction,
- enhancing crypto projects.
As ChatGPT itself mentioned, AI is able to analyze large amounts of data. And much quicker than any human can do so. Which may be helpful in forecasting and predicting crypto prices, market fluctuations, and trading bets.
As for enhancing crypto projects, we also agree that AI may some day be actually helpful in bettering the already existing and created projects by optimizing the blockchain network. A more advanced AI may be able to work well with spotting programming mistakes and coding on its own accordingly with the user’s prompts. Which, if you do your research, you’ll learn that the work is getting done and the future for AI’s involvement within coding looks promising.
As for bettering the area of security in crypto, we’re not so sure if AI could actually help with that just yet since the matter is pretty complex.
Why Is It too Early to Properly Judge AI’s Impact Now?
While all this sounds great in theory, we want to highlight one thing: AI is still more of a run mouth than actually being useful within crypto.
We’re going to elaborate on why it’s still too early to properly judge AI on the basis of ChatGPT’s recent hype.
ChatGPT’s Hype
ChatGPT, a product of OpenAI broke records for quick growth and gaining popularity among internet users. The new bot claimed its first million users within just a few days after launch and can now boast over a 100 million users in 2023.
That of course did not happen out of thin air. ChatGPT has been funded and hyped by influential people, among which we can name Elon Musk using his big purchase — Twitter.
But even ignoring the hype and a pat on the back from wealthy men, ChatGPT still did exceptionally well for a new solution on the market and still attracts new users, even companies who decided to start using this tool to make their work more efficient.
And ChatGPT is not the worst tool for brainstorming or writing generic content for cold emails. BUT, we’ve seen quite a few cases when using ChatGPT for working was just plain bad. The most recent flop was Samsung employees sharing sensitive data with ChatGPT, which may now be used by the tool to train on.
Samsung definitely did not get discouraged because of that situation and decided to nurture its relationship with ChatGPT even further, as recent rumors of Samsung deciding to switch its devices’ browser to Bing integrated with ChatGPT, instead of now-used Google, have been spreading.
But, going back on track.
For those that are not familiar with language processing tools like ChatGPT or Jarvis, and haven’t played around with them at all, there’s one common flaw they all have. And that flaw is fabricating information when they don’t know the answer.
And that happens because these solutions have access to a certain amount of data. In case of ChatGPT, the data base it has access to extends only to September of 2021.
The main thing we’re impressed with for now is how it’s able to learn from the data we’re feeding it and how it’s able to mimic conversational language.
That’s why it’s pretty fun to use ChatGPT for laughs, ordering it to produce ridiculous outcomes, poetry, comedy scripts, or even getting it to say inappropriate things.
But to use it for learning when we’re not sure whether the outcome is even true? Or to use it to make any kinds of predictions is not the wisest of ideas yet. ChatGPT is not a know-it-all just yet.
ChatGPT’s Cousin: CryptoGPT
Following ChatGPT’s success, many companies decided to either join forces with it or create their own solution to beat the competition.
And, we did find a similar AI solution to ChatGPT that’s supposed to work specifically within crypto — CryptoGPT.
CryptoGPT says that it’s “a ZK Layer-2 that lets you own the monetisation of your AI data”, which means that you can use it to package data, for example off your app, and earn by selling it.
Regardless of this idea, CryptoGPT also offers its own AI, Alex.
Alex is supposed to answer your crypto-related questions and help introduce you to the world of cryptocurrency.
And again, the idea of having AI to walk you through crypto sounds great, but having tested CryptoGPT, we can only say that it works pretty much exactly like ChatGPT3, and that it is also limited to a certain database.
To showcase its limitations, we asked it to tell us a bit more about Terra LUNA, knowing that this project failed quite painfully.
And Alex, AI from CryptoGPT did not seem to be acquainted with that information at all. It gave us a promising-sounding answer, saying that Terra LUNA is a project that’s pegged to the UST stablecoin, not mentioning its crushing and the whole drama with Don Kwon.
Psst. If you’re interested to learn more about this situation, we have a separate article on Terra Luna’s crush.
So in summary, CryptoGPT answers in a conversational tone, gives generic answers already available on the internet, and feeds us factually wrong answers to questions that extend beyond its database.
Pretty much summarizing exactly why it’s still too early to use AI for crypto.
Conclusion: Early Bird
Both AI and blockchain work with data. Blockchain encrypts data in a way that is transparent and non-changeable, while AI analyzes large amounts of data and concludes what needs to be concluded.
When you combine both those technologies, in theory, they may create something truly unique and revolutionary. But.
As we already mentioned, we believe that it’s still too early to properly judge AI and its impact on the crypto world.
Tools like ChatGPT show best that they may be good at natural language processing, but they’re not the best at sharing factual information, which is quite crucial when it comes to any kind of investment. Since we’re in an AI boom, the excitement and hype is understandable, but it may not exactly match AI’s abilities just yet.
While, of course, the most crucial work on extremely innovative AI is still in progress and the beginning stages are just as important for these tools to learn from, AI is still in the works.
And crypto, just like AI, is still an industry that is unraveling, that’s still on the path to reach its actual potential.
To give you an example, if you were to take a look at where we can actually pay with BTC in the real world, not online, you will be surprised to learn that it’s only Salvador that’s testing such a solution.
So since both AI and crypto are a work in progress, it’s hard to specify exactly how they will impact each other.
All we know for now is that both have great potential and may be innovations that will surprise us, hopefully, in a good way.