One of the perks of living in Los Angeles is easy access to many hiking trails. Within 30 minutes (assuming you’re not trying to hit rush hour, which is the key here) it’s possible to disconnect from La La Land on a canyon or ridge pass with only occasional interruptions from the companionship. hiker and/or fitness influencer. Here, conversations can flow freely, punctuated by the occasional Google fact check when cell service allows.
“Do you think ChatGPT will replace your role?” I asked my data scientist friend, who works at a large tech company in the midst of layoffs. “No, my work requires a much more specific context,” he replied curtly, acknowledging the protective barriers and moats created by proprietary corporate datasets.
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However, what does ChatGPT think about crypto – and does that thinking threaten investment writers and strategists?
Let’s make an assumption: Its views should reflect the “general” opinion of the information and sentiment included in the data sources from which it was trained. The AI bot should make some sense of the consensus view of digital assets, a collective zeitgeist built from an advanced statistical exercise.
Or at least that’s the idea. I decided to find out what ChatGPT thinks.
Invite: Explain bitcoin to a high school student.
Chat GPT: 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, it is created using computer code and stored in a public ledger called a blockchain.
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.
with [b]itcoin is decentralized, it offers a level of privacy and security unmatched by traditional financial systems. However, its value can fluctuate and there are risks associated with investing in it.
In general, [b]Itcoin represents a new way to transact and store 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 narrative of bitcoin. Let’s continue:
Invite: Are cryptocurrencies useful? Please explain in simple terms.
Chat GPT: Cryptocurrencies can be useful for many reasons. Here are some of the most common:
Decentralization: Cryptocurrencies like [b]itcoin and [ether] decentralized, meaning they are not controlled by any central authority or government. This makes transactions faster, cheaper and safer.
Global access: Cryptocurrencies can be accessed and used by anyone with an internet connection, wherever they are in the world. This will be especially useful for people who do not have access to the traditional banking system or for cross-border transactions.
Transparency: Cryptocurrency transactions are recorded in a public ledger called blockchain, which means they are transparent and can be verified by anyone. This increases trust and reduces 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 range of purposes, including finance, gaming, voting and supply chain management.
However, it is important to remember that cryptocurrencies are still a new technology and are subject to high volatility and regulatory uncertainty. Additionally, 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 sings a similar song of decentralization, disintermediation and transparency, although with the inclusion of smart contracts, a global perspective and a healthy financial risk aversion. It is useful to note that the ChatGPT training data includes information until September 2021, which coincides with the end of the last bull market. A quick prompt to “What is FTX and who is Sam Bankman-Fried?” proves the lack of awareness of, well, you know what happened a few months ago.
ChatGPT’s discussion of the global nature of cryptocurrencies is a good reminder that digital assets facilitate cross-border remittance payments and provide a decentralized and reliable open-source alternative for regional or local financial institutions. services and infrastructure. It is very easy to forget these critical use cases, because people like me usually take them for granted as part of modern life in a developed economy, without the constant banking crisis. The preference for this more banal use case is clearly visible when comparing Google Trend search data for Bitcoin versus Ethereum (see below).
Here, the search activity for Bitcoin and Ethereum is combined to create a relative activity ratio, with the purpose of proxying user interest. A value of 1 would suggest the same amount of search activity within a country spread across Bitcoin and Ethereum; 10 means 10 times more searches for Bitcoin than Ethereum. Given that BTC currently has about 2.3 times more market capitalization than ETH, it is not surprising that none of the ratios in the above chart are lower in volume. Switzerland at 2.3 is neutral (as usual), aka in line with market cap expectations.
Russia, Egypt and Nigeria have shown more interest in bitcoin than ether, while Serbia, China and Switzerland (the Ethereum Foundation is based in Switzerland) are more interested in Ethereum. From a look at the countries within the top and bottom bins of bitcoin/ether activity, we can conclude that developing and frontier economies are more focused on the store of value and decentralized utility payment systems, while developed economies are more interested in refining and upgrading. existing financial technology infrastructure through blockchain rail and smart contract platforms.
Just as we prompt ChatGPT for answers, we receive prompts for new questions and analysis. Who really instigated whom?
Invite: Will AI replace investment analysts? Please answer in haiku
ChatGPT: Analysis with AI aids,
But no substitute for skill,
From CoinDesk’s 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.
