The role of artificial intelligence (AI) in the world of investments is becoming increasingly important, as it provides tools to aid in decision-making. In this context, the ChatGPT-4, developed by OpenAI, is gaining attention from analysts and experts.
In a recent survey conducted on September 27th, ChatGPT-4 was asked to “recommend three cryptocurrencies that investors can buy and hold forever”; a popular strategy known as “hold.” The response from this advanced software pointed to three specific digital assets: Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA). It is worth noting that the top three choices by GPT-4 for the buy and hold strategy are among the seven largest cryptocurrencies in terms of market value, according to CoinGecko’s ranking.
However, ChatGPT-4 emphasizes that the cryptocurrency market is highly volatile and speculative. While the hold strategy is adopted by some investors, there are no guarantees of success.
Moving on to the recommended cryptocurrencies for buying and holding, Bitcoin (BTC), the leading cryptocurrency in the market, was identified as the first choice by ChatGPT-4. The AI highlights Bitcoin’s limited supply and robust network of miners and nodes as factors that provide security and stability to BTC as a long-term store of value and protection against inflation.
The second choice indicated by the AI is Ethereum (ETH), which is also the second-largest cryptocurrency in the market. ChatGPT-4 highlights Ethereum’s role as a foundation for decentralized applications (DApps) and smart contracts. According to the AI, Ethereum is a good long-term investment due to its position as the center for various projects and innovations in the cryptocurrency space. It also mentions the network’s transition to the Proof of Stake (PoS) consensus mechanism as a positive opportunity for investors.
Closing the list, ChatGPT-4 bypasses cryptocurrencies with higher market value such as Tether USD (USDT), BNB Chain (BNB), XRP Ledger (XRP), and Circle USD (USDC), and instead chooses Cardano (ADA), the seventh-largest cryptocurrency. The AI highlights Cardano for its emphasis on scalability, sustainability, and interoperability. The chatbot also praises the project’s research-oriented and academic approach, which aims to provide a more secure and scalable platform for smart contracts and DApps.
It’s important to note that these recommendations come with the acknowledgment of the highly volatile and speculative nature of the cryptocurrency market. Therefore, investors should conduct thorough research and consider their risk tolerance before making any investment decisions.