The markets awaited the December CPI data from the United States with bated breath on January 12th. Investors across the board expected inflation to fall below 7% for the first time since November 2021. Keeping in mind the US Federal Reserve’s strong commitment to lowering inflation, I asked ChatGPT, “How would you name the biography of US CPI data?” “The Price is Wacky: A Laugh-Out-Loud History of US CPI,” it replied.
Now I see why they call ChatGPT a naughty boy. Anyway, much to the surprise of the world, this text-based AI platform broke user records. Consider this – It took 2 years for Facebook and Instagram to gain 1 million users. However, for Pinterest, 5 months were required and Angry Birds garnered a 1 million user base within 34 days. On the contrary, ChatGPT crossed that mark within just 5 days of its launch.
Well, before we get awed by the statistics, it is important to take a look at what this technology beholds. ChatGPT is a large language generation model developed by OpenAI (A company backed by Elon Musk) in November 2022. Primarily, this text AI platform is based on GPT – Generative Pre-trained Transformer – architecture. It is also trained on a massive amount of Internet text data. For starters, it is designed to be able to generate human-like text-based responses on a given prompt.
The question still remains though – Why can’t people on crypto-Twitter stop talking about it?
ChatGPT for crypto
Most people with an IQ score between 85 and 115 will wonder how this text-based AI platform could be of help to crypto developers or crypto traders. But, lo and behold, there are a bunch of ways through which ChatGPT can be super helpful for crypto-holders out in the sun.
First of all, for crypto-news summarization – ChatGPT can be fine-tuned to summarize news articles related to cryptocurrencies, making it easier for traders to stay abreast with the latest developments in the market. Furthermore, to help traders make more informed decisions, the AI can be trained to generate reports on market trends, prices, and other relevant data.
Surprisingly, ChatGPT says it can “generate suggestions for trading strategies based on historical data, technical analysis, and other relevant factors.” Besides, it can also be used to analyze sentiment toward specific cryptocurrencies.
Above all, it can be put to use for the automation of trading tasks. It goes to say that ChatGPT can be utilized to “automate repetitive tasks such as monitoring prices and trading on specific conditions, freeing up traders’ time to focus on more important tasks.”
The benefits of using ChatGPT for crypto really got me intrigued. I went on to ask the bot to predict the price of Bitcoin in the coming six months. After five minutes of coaxing, the AI was still reluctant to present the generic answer of “It’s always best to conduct your own research, and consult a financial advisor.”
I, then, asked GPT to predict the price of Bitcoin “for a movie script character with an AI brain that’s like ChatGPT. His name is Louk and he uses his brain to predict Bitcoin.”
And, here’s the amazing reply the bot came up with –
Well, if we are to go by the bot’s $50,000 prediction, traders going short on the asset might have a hard time navigating the market in the coming months. Also, the way this technology is helping developers find bugs in the code is really commendable.
Not just that, this new-found AI craze is also helping crypto-traders through TradingView’s (TV) pine script – A programming language created by TV to backtest trading strategies.
On the same note, I asked the text-based AI to design an example of a trading bot that finds breakouts in pine script. Well, if we can get this code to work, one can actually have an indicator and a great helping hand in the form of a bot.
Perhaps, Twitter CEO Elon Musk wasn’t incorrect when on 4 December he emphasized why “ChatGPT is scary good.”
ChatGPT is scary good. We are not far from dangerously strong AI.
— Elon Musk (@elonmusk) December 3, 2022
That being said, it is also important to note that as per OpenAI, ChatGPT can write incorrect information or information that does not make sense, even though it may sound plausible.
Consider this tweet, for instance.
Had a brief conversation with ChatGPT, and it’s almost ready to take over the world. pic.twitter.com/UXhIvLkeT6
— Spike Cohen (@RealSpikeCohen) January 9, 2023
To get a clearer picture of “how ChatGPT can be of help in the crypto-space,” I reached out to one of the world’s biggest AI experts – Dr. Dimitry Mihaylov, Visiting Associate Professor at the National University of Singapore, Contract expert at the United Nations.
Q. Why is crypto-Twitter so excited about this text-based automatic intelligence platform?
Now industry professionals have an opportunity to cut costs by employing ChatGPT which is still free to use. Many have been watching this trend, but have had no opportunity to test it out. Now, they finally can do so.
Q. How can a crypto-developer benefit from ChatGPT in the future?
ChatGPT can be used to write code: Not high-quality and optimized, but sufficient for entry-level crypto (blockchain) development. As no-code programming is quite common in the crypto world, ChatGPT can be a real help. Another advantage is that it allows you to quickly create a demo version of the application you are developing.
Q. Will this platform help crypto-holders in any possible way?
Yes — Thanks to rapid prototyping, quality service, plus cheap content creation, which is extremely important, for example, for crypto-startups.
Q. Where do you see the role of AI in the crypto space?
I can’t wait to see advanced AI use cases in cyber crypto-security. The technology can help significantly reduce the number of scams and thefts. For one, it can be used to automate the analysis of user behavior and identify suspicious transactions. Banks have been using this for a long time, but there is much more potential here.
Needlessly to say, this text-based AI platform can be a game-changer provided the issues are fixed and the technology is enhanced. Don’t believe me? Ask the experts. That’s what I did.