With the rise of artificial intelligence day by day, its usage area is also expanding. Experts recently asked the artificial intelligence chatbot ChatGPT about the future of the cryptocurrency market! The answers of the artificial intelligence bot surprised the experts! Here are the details…
Artificial intelligence bot ChatGPT has made predictions for the cryptocurrency market!
The adoption rate for cryptocurrencies will increase
First, AI bot ChatGPT stated that there will be “more mainstream adoption” within this time frame as it predicts BTC and altcoins to become an important part of the global financial network and be used for transactions.
On the other hand, we have definitely seen improvements on this front over the past few years, as we have reported as cryptokoin.com. Visa and Mastercard, two of the giants in this space, have signed multiple partnerships with crypto firms to enable millions of investors to accept payments on digital assets via credit and debit cards. However, despite the industry disruptions over the past year, Visa’s head of crypto recently doubled down on his company’s positive views on the matter, as they believe some digital assets “have the potential to play an important role in the payments ecosystem.” Mastercard, on the other hand, recently launched a special program aimed at helping banks launch cryptocurrency trading platforms.
Better regulatory moves will happen
On the other hand, artificial intelligence bot ChatGPT predicts that with the increase in adoption rates, global observers will want to follow the development of the industry more closely, while pointing to many collapses such as the Terra and FTX collapse, he states that the role of regulators will be more active. At this point, the United States has been at the forefront, though not in a very positive light. Despite being home to some of the biggest crypto companies, local regulators have failed to set appropriate rules.
At the same time, the Securities and Exchange Commission went after multiple firms, alleging they were offering unregistered securities without detailing which digital assets were actually securities. The regulator is also taking legal battles against many crypto giants, including Ripple and Grayscale. In response, Singapore, Hong Kong and the European Union are taking steps to regulate the sector. The EU recently approved MiCA legislation, which is expected to be operational in 2024 for stablecoins and in 2025 for exchanges and other industry participants.
Institutional investments will increase day by day
A few years ago, we saw institutions enter the cryptocurrency market right after the COVID-19 outbreak. On the one hand, several prominent former investors such as Ben Miller, Stan Druckenmiller and Paul Tudor Jones III have expressed their support for Bitcoin and some altcoins while criticizing other investment options and the Fed’s monetary policy.
On the other hand, institutional investment vehicles such as giant insurer MassMutual, One River Asset Manager and even BlackRock (the world’s largest asset manager) have made their way to the market with specific investments or direct BTC purchases. It even led the once dubious banking giant JPMorgan to predict that other institutions might do the same at some point. However, all of that was broken by the Terra and FTX collapse that took place last year. However, ChatGPT believes that the trend is likely to reverse again, especially if the previous two predictions come true.
Financial Services Interaction and Blockchain Adoption
Given their nature and similarity with the first point on this list, experts combine the two options. Besides the use of credit and debit cards, ChatGPT suggests that cryptocurrencies and blockchain technology can be successfully integrated into other parts of the financial system. This includes processing large transactions on a larger scale on blockchain networks, as well as incorporating insurance policies and real estate deals on top of this technology.
However, according to AI bot ChatGPT, finance is just one of the areas that could start to embrace blockchain more and more. He believes the technology can be used in many other areas, such as supply chain management, healthcare, and even government services.
Sustainability
A few years ago, environmental, social and governance (ESG) investing was followed by many when several global agencies published frequent reports that bitcoin mining is bad for the environment. Many investors, including Elon Musk’s Tesla, pulled back from their BTC positions and pressured miners to stop using coal fuels and move towards more sustainable and green energy sources.
This is also one of the reasons Ethereum completed The Merge last year – an improvement that enables the second largest blockchain to move from more energy-intensive PoW to PoS. ChatGPT thinks sustainability will play a big role in the industry over the next decade as environmental concerns continue to rise. Therefore, the chatbot predicts that cryptocurrencies that use more green energy will be the preferred choice for investors.
Expansion of the DeFi industry
Decentralized finance is today seen as the opposite side of the world’s centrally functioning general financial system. This will keep all your transactions, deals, etc. always means that a third party is involved. Although DeFi has been around for years, it has exploded in popularity in 2020. During this so-called “DeFi summer,” projects in this space have skyrocketed in engagement, total value locked (TVL), and prices.
However, this massive and rapid adoption has exposed some of the industry’s problems, such as a lack of scalability, the presence of obvious fraud, fraudulent projects, and security issues, as well as rug pull. There are billions of cryptos lost due to hacks in the last few years. But ChatGPT believes that DeFi will leave its problems behind, improve the user experience and become a vital part of the financial industry.
New Technological Innovations
Finally, the artificial intelligence bot ChatGPT talked about innovations in the technology sector. After all, the Bitcoin network and many other projects that emerged in the following 15 years can be described as a novelty in itself. Despite the problems of the proof of work system, it led to the creation of proof of stake and its multiple variations. So far, blockchain’s DeFi, NFTs, etc. We have seen that it allows the development of many and various protocols with different purposes such as The next ten years may bring many more uses for ideas we haven’t even thought of yet. However, new cryptocurrencies may emerge with features and uses that we cannot predict at the moment. These may result from advances in technology or from changing needs and conditions in society.
Interestingly, the AI bot made no mention of NFTs despite the explosive growth in adoptions in 2021. According to experts, this raises the question that ChatGPT does not associate these projects with crypto or see a future for them.
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