When we take a moment to consider just how the world has changed in the last ten years, it’s no secret that tech is going to be the biggest theme throughout a host of industries; one of the biggest being the finance niche.
With the inception of digital currencies and blockchain functionality, it seems that innovations no one could have predicted just a decade ago are disrupting the industry almost every week.
One such revolution has had an unforeseen impact and that’s the development of AI, specifically the chatbot ChatGPT – and as a result, the current and future implications for both fiat and digital currencies are the hot topic of 2023.
A closer look at ChatGPT
While the earliest AI program to see success was developed in 1951 and its applications have grown in volume and functionality in the decades since, there has certainly been market disruption since ChatGPT came onto the scene in November 2022.
AI has been driving industry change for quite some time now, but it seems that nothing has had quite the impact that ChatGPT has generated. In just a few short months, the immediate and future potential is creating a buzz with both crypto investors and industry insiders.
This is largely due to the nature of the innovative machine learning model designed by OpenAI and the fact that its capabilities are not yet fully realised. This gives a broader range of scope for industry use and how the software can help both trading robot developers and traders to maximise their potential.
The software behind ChatGPT operates via conversational learning, whereby it interacts with and responds to a host of manual dialogue prompts, albeit in a much more intelligent, intuitive and accurate way than other leading market names.
Having said this, it is still chatbot AI and uses voice-driven computing techniques to process vast amounts of data to produce predictive and analytic answers to pain points algorithmically while mimicking human speech.
How ChatGPT can be applied to the cryptocurrency niche
There are already several use cases for ChatGPT (as well as yet unrealised applications and advancements that can be further focused on and developed as industry needs evolve). With this in mind, let’s take a closer look at its current employment in the niche.
Consumer interaction
When it comes to the relatively new and typically volatile nature of digital currency, it’s not surprising that a host of individuals are wary of its capabilities, uses and potential – and one of the biggest barriers in industry growth is continuing to attract new customers.
ChatGPT is helping to educate those with queries by providing instant, concise answers that are not only drawn from data from top resources, but also streamlined by the interactions of thousands of consumers with the same questions (for example, the more positive the feedback on responses, the better they will become). It can even help users to discern more diverse questions, such as the best crypto to buy now 2023.
In-depth analytics for market prediction
When using the financial markets to potentially profit off of digital currency, one of the biggest tools to have (and advantages at a trader’s disposal) will be predicting when prices/values are likely to rise or fall.
ChatGPT uses both past and current market data, alongside other analytics, to bring nothing short of the most relevant insights into market price movements for both short and long-term endeavours.
If traders want to know what is the best crypto to buy right now in 2023 AI tools may give them some options based on real historical data and market analysis.
A great feature that ChatGPT provides over other, similar forms of predictive AI is the ability to produce its own opinions on how economic and societal news and trends may impact the crypto niche in the coming days, weeks and months.
Trading robots
As advancements in tech and AI have progressed, the crypto niche has become far more accessible and it is now easier than ever before to get involved with little to no experience by using trading robots.
These software programs are AI-based and use algorithms, analytics and data collection to scour financial markets and determine and execute the most profitable crypto trades on the behalf of the user (typically under set parameters).
Trading robots have the potential to help define trading strategies, increase profit potential and even allow traders and investors to diversify their portfolios, so individuals of all experience levels can make use of them to boost their endeavours.
ChatGPT comes into the fray as it can support trading robots and allow analysts and programmers the ability to create software that can work alongside them in an array of programming languages, as well as generate code that can be integrated with blockchain APIs.
AI software and the finance and crypto sectors
There is a growing focus on artificial intelligence as it integrates into every aspect of the modern lifestyle. Examples are emerging in communications, work environments, retail and even home life – and the applications for digital currency are fast becoming a staple part of the industry.
While there are currently new digital coins being developed using AI capabilities, the greater benefits can be seen when using AI software like ChatGPT and similar to make accurate market predictions, undertake sentiment analysis across a host of crypto exchanges, make better decisions for investment monetisation, improve the functionality of automated trading robots and even create better-performing smart contracts via the blockchain (more on these later).
ChatGPT’s future potential
One of the areas that stands to benefit greatly from ChatGPT’s future potential is how it can improve and streamline how smart contracts are created.
These are blockchain-based computer programs that are designed by developers to generate flexible agreements, or smart contracts, to meet a host of preset terms and conditions for automated trade execution.
Again, it has an even greater potential than similar technology, as its unique processes will be capable of providing insights into any benefits and risks that may arise with smart contracts and suggest/implement worthwhile adjustments for more functional outcomes.
Is ChatGPI the way forward for cryptocurrency trading?
When it comes to both AI and cryptocurrency as separate entities (as well as the wider financial market), there is still a lot of uncertainty for many individuals regarding their applications, success and longevity for the future.
When you consider their widespread functionality and continued staying power however, it quickly becomes apparent that the two will go hand in hand for the betterment of automated trading in the future.
