There has been a lot of talk recently about ChatGPT and how it may affect many areas of our lives.
Among the most talked about topics is the relationship it may have with the financial and investment world.
What may happen to the crypto world with the arrival of ChatGPT?
What is ChatGPT?
ChatGPT is a ChatBot developed by OpenAI based on Artificial Intelligence and Machine Learning. Let’s take a closer look at it.
A ChatBot is a program that is intended to talk to a human being, trying to be as realistic as possible.
Being more realistic means trying to make its conversations as similar as possible to those of a human being, so that the difference is not even perceived.
This technology was definitely not invented today; it has been around for years and continues to improve. To think that the first one was created back in 1994.
Even virtual assistants such as Google Home and Alexa, which are present in every home now, are ChatBots. They are in fact meant to communicate with humans.
So why is this ChatGPT being talked about so much?
The technology developed by OpenAI leverages Machine Learning in a way never seen before. What’s more, it is free and therefore affordable for everyone. You can try it too by clicking here.
Machine Learning consists, as the name implies, of an Artificial Intelligence system that allows the machine to have a brain, similar to that of humans.
The machine will be able to learn knowledge over time, just like us, and will not remain anchored to the information given to it once it is created. Scary, but also incredible.
Thus, such software will be able, having access to any information, to answer any question you have. It will do so by formulating a precise and appropriate answer.
Let’s look at an example.
It does even better with more specific questions, such as this one:
What can happen to the financial world
Technological evolution is always good, but what changes will it bring?
With the birth of the car, horses were abandoned. So what will be the next horses?
It is not only about what is ChatGPT today but about all the Artificial Intelligences that will be created in the coming years. We cannot know what they will be able to do.
We certainly would not be able to tell what was produced by an AI and what was produced by a human.
We cannot be sure that a fund manager whether in stocks or cryptocurrencies would be able to give better advice than a simple ChatBot.
If such a Bot were created just to give financial advice it might be a viable solution considering all the information it has at its disposal.
Also, with the absolute coldness of a machine, following all its instructions would be even more beneficial. We will definitely see big changes from this point of view.
In the end, each of us is interested in using the method that can generate the greatest gain, and if Artificial Intelligences will be the ones to enable this, they will surely spread in a short time.
In addition, an important factor to consider is the speed with which these technologies can evolve and change.
They evolve much faster than any other because they are a digital product. So it may not be long before we see them applied everywhere.
Just think that already many companies are implementing them in their tools.
What can happen to crypto
The future of crypto and the future of Artificial Intelligence could become very much in sync.
Blockchain and AI are two technologies that are still underdeveloped relative to their potential. Both represent a niche technology, discovered and used by a few.
And they may work together in the future. As mentioned earlier, AIs will be able to create digital products of any kind. Products indistinguishable from those created by a human mind.
They might even be able to create a cryptocurrency for us, or administer an investment portfolio.
We cannot expect to live in a world where one cannot be distinguished from the other. The blockchain, because of its immutable and open structure, can verify the provenance and path of every digital object. As we have already seen with NFTs.
The use of NFTs as digital art is only the tip of the iceberg of its applications.
If we use NFT (Non-Fungible Token) technology to distinguish and recognize every digital object, the previous problem is solved. We would always know what comes from a bot and what comes from us.
All of you right now cannot be sure that I wrote the article: an actual person who typed all these words on a keyboard. In fact, I reveal to you that all the images in this article were created by an Artificial Intelligence, developed by OpenAI as well. It is called DALL-E.
All the technologies that will lead to greater digitization, like ChatGPT for that matter, will bring an advantage to blockchain. Precisely because it aims to make the digital world a more secure place. And cryptocurrencies in turn will benefit.
We are moving toward a world where Finance and IT will be closer and closer. And cryptocurrencies will definitely take from both sides. This is exactly what I talk about on my website.
In fact this is what ChatGPT writes:
“Both AI and cryptocurrencies have been used to automate financial processes. AI can help predict cryptocurrency prices, while cryptocurrencies themselves can offer greater security and transparency in financial transactions.
In the future, we are likely to see more and more integration between AI and cryptocurrencies, with AI being used to automate cryptocurrency trading processes and cryptocurrencies being used as a means of payment to purchase goods and services provided by AI systems.”
Trading bots so far have not been very relevant, as they are still inferior to an experienced trader. But when they reach such power that they can achieve a certain consistent result over time, the whole market will change.
What will happen we cannot know precisely. What is certain is that cryptocurrencies and Artificial Intelligence will get along well.