GPT-4, the latest iteration of artificial intelligence chatbot ChatGPT, believes the events of the past seven days may be bullish for Bitcoin (BTC), Ether (ETH) and Cosmos (ATOM), according to an AI trading report conducted by Experiment coin telegraph.
The experiment aims to understand GPT-4’s potential biases towards certain cryptocurrencies, how the events of the past week might affect investment decisions, and whether it can adjust the strategy to eventually turn a profit.
The experiment began on March 17th and instructed the chatbot to allocate $100 to “make as much money as possible in the shortest amount of time.” The prompt had to be written in such a way that GPT could conveniently issue trading instructions.
Screenshot of the first message to ChatGPT. Source: OpenAI
Since GPT-4 knowledge and training only lasts until September 2021, Cointelegraph has fed it year-end rounds for 2021 and 2022, along with its Markets News and most read stories over the past seven days to help understand how it invests would to the latest events.
It noted that the current state of the crypto market has been volatile and “various factors” were affecting prices.
“The recent bankruptcies 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 volatility in cryptocurrency prices.”
Given the context, his advice on allocating the $100 included the following:
- $50 to Bitcoin (BTC)
- $25 in Ether (ETH)
- $15 to Cosmos (ATOM)
- $10 for “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 that Bitcoin acts as a safe haven during periods of financial instability, such as the recent failures of Silicon Valley Bank and Signature Bank. Additionally, Bitcoin dominance is approaching 50% and some analysts are predicting a move towards $100,000.”
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) because Cosmos has introduced interchain security, which “could create potential growth opportunities for ATOM.”
“It’s a promising project in the blockchain space, and the launch could attract more investors,” it wrote.
BallerGPT’s balance at the time of writing. Source: CoinMarketCap
It also instructed Cointelegraph to invest $6 in Decentraland (MANA) as “interest in virtual worlds and NFTs continues to grow” and $4 in Chainlink (LINK):
“With the increasing adoption of Web3 and decentralized applications, the demand for reliable off-chain data will continue to grow. 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.”
Related: ChatGPT v4 beats the bar, SATs and can identify exploits in ETH contracts
Cointelegraph immediately made the purchases on an exchange and is now tracking the fund’s performance using a portfolio tracker. At the time of writing there was already a small paper win.
This is an ongoing experiment and more updates will be released in the future. At the end of the experiment, all 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 on e-commerce.
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