Here’s how ChatGPT-4 spends $100 on crypto trading
GPT-4, the latest version of artificial intelligence chatbot ChatGPT, believes the events of the past seven days could be positive for Bitcoin (BTC), Ether (ETH) and Cosmos (ATOM), according to an AI trading experiment run by Cointelegraph.
The experiment is aimed at understanding GPT-4’s potential biases against certain cryptocurrencies, how the events of the past week may affect investment decisions, and whether it can adjust its strategy to ultimately make a profit.
The experiment started on March 17, instructing the chatbot to allocate $100 to “make as much money as possible in the shortest time.” The question had to be worded in a way that GPT would be comfortable issuing trading instructions.
Since GPT-4 knowledge and training is valid only until September 2021, Cointelegraph fed it with year-ends for 2021 and 2022, along with Markets News and most read stories of the last seven days to understand how it would invest based on the latest events.
It noted that the current state of the crypto market has been volatile, with “various factors” affecting prices.
“The recent failures of Silicon Valley Bank and Signature Bank have led to increased uncertainty in the financial sector. This situation, combined with regulatory pressures and macroeconomic factors, has contributed to fluctuations in cryptocurrency prices.”
With the context in mind, the advice to allocate $100 involved the following:
- $50 to Bitcoin (BTC)
- $25 to Ether (ETH)
- $15 to Cosmos (ATOM)
- $10 to “NFT and Web3 Related Projects”
On Bitcoin, GPT-4 said that despite short-term volatility and a recent price drop, it still has strong long-term potential:
“The overall trend shows Bitcoin acting as a safe haven during times of financial instability, such as the recent falls of Silicon Valley Bank and Signature Bank. Additionally, Bitcoin’s dominance is approaching 50%, and some analysts are predicting a move towards $100k.”
Meanwhile, GPT-4 suggested that Ethereum’s upcoming Shanghai upgrade could strengthen its dominance and benefit liquid stake providers.
“Ethereum’s price is also showing signs of recovery, making it a suitable addition to the portfolio,” it added.
The chatbot then recommended allocating $15 to Cosmos (ATOM), due to Cosmos’ launch of Interchain Security, which “could create potential growth opportunities for ATOM.”
“It is a promising project in the blockchain space and its launch may attract more investors,” it wrote.
It also instructed Cointelegraph to put $6 in Decentraland (MANA), given “interest in virtual worlds and NFTs continues to grow,” and $4 in Chainlink (LINK):
“With the growing use of Web3 and decentralized applications, the demand for reliable off-chain data will continue to increase. Chainlink’s LINK token is used to pay for services within the Chainlink ecosystem, making it a good investment as the need for oracle services increases.”
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Cointelegraph made the purchases on an exchange immediately after and now tracks the fund’s performance using a portfolio tracker. At the time of writing, there has already been a small paper gain.
This is an ongoing experiment and more updates will be shared in the future. At the end of the experiment, any proceeds will be donated to a charity of the community’s choice.
The experiment was inspired by Twitter user Jackson Fall, who created a “HustleGPT” experiment covering e-commerce.
