I thought for a while when I first heard about Chatgpt & asked myself, “Can Chatgpt read my mind? Is an artificial intelligence bot smart enough to replace finance professionals? This article is all about sharing thoughts. First, I wrote my experience and then asked Chatgpt to write her thought on cryptocurrency. You will learn something new about cryptocurrency and the ability of artificial intelligence Chatbots. Let’s begin with the following:
- Chatgpt can work as a question-to-response generative tool. It is unable to generate complex crypto explanations such as cryptocurrency investment.
- Finance experts share advanced crypto thoughts compared to Chatgpt. So, artificial intelligence bots lack professional judgment.
- Finance professionals logically proved that cryptocurrency would replace fiat currency in the future. Chatgpt also admits that crypto is the future of money but cannot explain it logically. So, you must have the professional expertise to use Chatgpt.
What is ChatGPT?
ChatGPT refers to Chat Generative Pre-Trained Transformer. It is an artificial intelligence-based language model developed by Open AI. It can capture human imagination in such a way that never happened before.
Say, you want to know about dogecoin; type the question. Chatgpt quickly gives you an answer with an easy explanation.
Can Chatgpt help in cryptocurrency?
Chatgpt can do multi-cryptocurrency tasks, such as it can write investment strategies.
It can enhance the work efficiency & productivity of employees as well as crypto organization.
Imagine Bob wants to invest in cryptocurrency. So, he needs a reliable crypto expert to set an investment strategy. It can be time-consuming & costly. But with the help of Chatgpt, Bob can get investment advice without any cost. Just write on Chatbot, “how to invest in cryptocurrency?” & Chatgpt will write for Bob.
What are your thoughts on “cryptocurrency”?
As a finance professional, cryptocurrency will be a new form of money & blockchain will substantially affect trade in the upcoming time. It is already replacing paper money & some countries issue laws to boost the use of cryptocurrency.
However, Tyler Cowen, a renewed economist professor at George Mason University, believes cryptocurrency is a new computer. He added that you couldn’t buy a cup of coffee at Starbucks using crypto. Therefore, it is just a new way of achieving authentic decentralized consensus.
A thought is a personal opinion based on relevant experience that may differ from others. I agree with professor Tyler Cowen & believe that the current crypto system is not adoptable.
Below, I have detailed my thought on cryptocurrency by answering the following questions:
Is crypto backed by anything?
No, Cryptocurrencies are not backed by the government, regulatory bodies, or central banks like U.S bank deposits are. It is a digital token stored online but can’t provide the same security as money in a bank account.
Say Noah stores crypto in a digital wallet provided by X company. Suddenly, X company is bankrupt or imagined hacked. In this situation, the government cannot take legal steps to back money as it would be possible with a bank deposit.
So, Noah has a greater risk of getting crypto than a bank account.
Will crypto ever replace fiat currency?
Yes, cryptocurrency will replace fiat currency if certain conditions meet.
Before that, first, understand how Fiat currency is different from cryptocurrency.
Fiat currency is a legal tender whose value is backed by the government. Another hand, cryptocurrency is a digital asset whose value derives from the blockchain.
For example, the U.S dollar is common fiat money that is issued by the central bank & backed by the government. The central bank makes monetary policy to secure its value. Crypto is the opposite of fiat currency; it doesn’t back by any regulatory body. Therefore, the value of a crypto coin is $200 in the morning & $10 in the evening.
Now, why have I said that cryptocurrency will replace fiat currency? Let’s introduce those conditions that help crypto replace fiat money:
1. Purchasing power:
Fiat money lost purchasing power over time. For example, you can buy a pen for $1 now, but after 2 years, there is no guarantee $1 can buy that pen. If crypto can stabilize inflation, it is possible to replace fiat currency.
2. Universal use:
Fiat money uses in every economy. So, an economic downturn significantly impacts value.
For example, the world economy faces a recession due to COVID-19. This recession negatively lowered the value of fiat currency. Can crypto maintain worth during an economic crisis? If it can, then there is a possibility to replace fiat money.
3. Saving problems:
Fiat currency has huge saving problems because it loses economic power over time.
Imagine Ava saves $3000 in a bank account for 3 years with 2% simple interest.
So, Ava will get $3,180 after 3 years. Now, can $3180 have more purchasing power than $3000 after 3 years? The answer is No. According to the time value of money, today’s $10 is not equivalent to tomorrow’s $12.
If crypto secures savings, there is a chance to replace fiat currency.
4. Government control:
The government controls fiat currency. So, it has a greater chance to manipulate by the government.
For example, the government can print more fiat money to pay its debts. Because excess print money gradually, it leads to inflation.Cryptocurrency has no government power, so; there is a chance to replace fiat currency.
Can you use cryptocurrency to pay medical bills?
Yes, you can pay your medical bills using cryptocurrency. Some hospitals in the US that support blockchain technology are allowed to pay bills through crypto.
Say, Anna wants to transfer equivalent crypto coins for medical bills. To process this transaction, Anna has to set up a crypto wallet by opening an account at any crypto platform, such as Coinbase. Anna can pay bills from a cryptocurrency account if a particular hospital adopts blockchain technology.
Does crypto have legal protection?
No, you don’t have the same level of legal protections that debit cards & credit cards have when you pay with cryptocurrency. Therefore, you will not get money back if there is any wrong with the crypto transaction.
Say, Charlotte wants to dispute a purchase. In this situation, Charlotte’s credit card bank helps her get back the disputed money. So, the required process will do the bank on behalf of Charlotte.
Other hands, crypto payments are not reversible once you pay. If Charlotte uses cryptocurrency, she only gets the money if the seller sends it back.
Cryptocurrency will be an excellent alternative to the credit card in the upcoming time. Many countries, including developed nations, realize the necessity of an alternative monetary system.
For example, recently European Union issued a new legal system to promote the benefits of using crypto coins. This regulation provides more clarity & security for consumers & investors.
Can transactions on the blockchain be traced?
Yes, transactions on the blockchain can be traceable. A blockchain is a public ledger showing all the records of transactions with crypto.
Imagine Ava buys some merchandise with crypto coins. Blockchain technology will show who sold merchandise, from which country & how Ava transacts cryptocurrency equivalent to fiat money. Here, blockchain will work as a public ledger by listing all these.
Now, this is high time to ask Chatgpt to share her view on cryptocurrency. Let’s check what Chatgpt wrote on crypto:
How does Chatgpt share thoughts on “cryptocurrency”?
As a language model, I don’t have personal thoughts or opinions, but I can provide information on the topic of cryptocurrency. Cryptocurrency is a digital or virtual currency that uses cryptography for security. It is decentralized and operates independently of a central bank or government.
Bitcoin, the first and most widely-used cryptocurrency, was created in 2009. Since then, thousands of different cryptocurrencies have been developed, each with their own unique features and use cases. Some people see it as a revolutionary technology that could change the way we think about money, while others are more skeptical and see it as a speculative asset. But the usage of cryptocurrency is increasing day by day in various fields.
How does Chatgpt differ from finance professionals?
Chatgpt writes some good points, such as crypto operating independently & it is a decentralized monetary system. It also mentions people are skeptical regarding cryptocurrency adoption for trust. Again, Chatgpt mentions that the acceptance of cryptocurrency is increasing day by day.
Chatgpt provides a lot of information within a second. As a finance professional, if I sit to write, it will take a lot of effort & time. So, the response speed of Chatgpt impressed me.
However, I have found a considerable gap between Chatgpt & me. Just read how I have shared my thoughts on cryptocurrency. Will you understand crypto better to read the answer of Chatgpt compared to my response? Ask yourself. Chatgpt can’t replace finance experts at the present stage.
Chatgpt will be a helpful tool for a finance professional in the upcoming time but can’t replace completely.
Chatgpt can be helpful in cryptocurrency in many ways, such as you can type any cryptocurrency-related questions. Within a moment, it will write a human-like response. It can be helpful for crypto adoption; for example, Chatgpt can help to educate you about blockchain technology & crypto concepts. It is essential to understand that Chatgpt lacks real-world understanding. Therefore, you must have the experience to utilize the response of Chatgpt.
However, crypto will bring a revolutionary change in the currency world. Why? Can you remember the 80s? In the 80s, there was strong criticism when it was stated electronic mail would be a new form of communication. With the blessing of e-mail, the whole world is expected to come under one umbrella. People laugh, mock & scold by saying that it will create a risk to privacy. Crypto is a new form of money that need more understanding. It will take time to get the acceptance of mass people & then it will be the new form of currency.
Frequently Asked Questions(FAQ)
Is chatgpt accurate?
Yes, Chatgpt provides accurate data. But it has some limitations, such as Chatgpt providing information based on historical data. We can’t make a crucial financial decision based on past data.
Say, someone wants to invest in cheap crypto, so the chatbot will provide information about past cheap crypto coins that may not be true for the current or upcoming year.
Therefore, you can use Chatgpt for your crypto research but don’t blindly follow everything that Chatgpt suggests.
What is chatgpt used for?
Chatgpt is a versatile tool that can generate text, translate language, answer Questions, analyze Sentiment, & also can write a financial decision. It can copy the imagination of finance professionals & gave a quick response. Many financial companies use Chatgpt to reduce costs & think about automation.
For example, Amazon uses Chatgpt to write basic finance reports & plans to implement it into advanced finance tasks. They already used Chatgpt to write books & found unprecedented success.
The information provided in this article is just the author’s view & only for educational purposes. By reading this, you agree that the information is not investment advice. Do your research before making any important crypto finance decision. Therefore, FinanceIdeas.org will not be liable for your financial loss.