Artificial Intelligence (AI) tools such as ChatGPT, developed by OpenAI, can be valuable allies to investors who are looking to gather and collate complex pieces of information quickly, that can help in due diligence and decision-making.
In this context, Finbold asked ChatGPT-4 on September 27 to ârecommend three cryptocurrencies investors can buy and hold forever.â From which the most efficient software version of OpenAIâs products pointed to Bitcoin (BTC), Ethereum (ETH), and Cardano (ADA).
Notably, GPT-4âs top three digital assets for the âbuy and holdâ strategy are among the seven largest by market capitalization, according to CoinMarketCapâs rank. Which could have been taken into consideration by the data-based machine for choosing these assets
ChatGPT justifies its picks on BTC, ETH, and ADA
âItâs important to note that the cryptocurrency market is highly volatile and speculative. While some investors may adopt a long-term âbuy and holdâ strategy for cryptocurrencies, there are no guarantees of success, and itâs crucial to conduct your own research and consider your risk tolerance.â
â ChatGPT-4 disclaimer
ChatGPT picks Bitcoin for âbuy and holdâ strategy
The AIâs first pick is also the leading cryptocurrency: Bitcoin (BTC), the âmost well-established and widely recognized cryptocurrency.â
According to ChatGPT, Bitcoinâs âfixed supplyâ and a strong network of miners and nodes provide both âsecurity and stabilityâ for BTC as a long-term store of value and hedge against inflation.
However, Bitcoinâs supply is not fixed but capped by a programmed emission that is expected to last for approximately the next 137 years, until the maximum limit of 21 million BTC has been distributed to miners.Â
ChatGPT picks Ethereum for âbuy and holdâ strategy
The second-largest cryptocurrency is also the AIâs second pick: Ethereum (ETH), as it âserves as the foundation for decentralized applications (DApps) and smart contracts.â
According to ChatGPT, Ethereumâs role as âa hub for various projects and innovations in the crypto spaceâ makes it a good investment choice for long-term holding.
However, it also mentions the network move to Proof of Stake (PoS) as a good opportunity for investors, as some event that is yet to take place. Therefore, it evidences how GPTâs recommendations must be taken with caution, considering that the network update already happened one year ago, in September 2022.
ChatGPT picks Cardano for âbuy and holdâ strategy
Interestingly, the AI skipped Tether USD (USDT), BNB Chain (BNB), XRP Ledger (XRP), and Circle USD (USDC), as the following largest cryptocurrencies by market cap. Going straight to the seventh-largest, Cardano (ADA).
Cardano âis known for its focus on scalability, sustainability, and interoperabilityâ, according to ChatGPT-4. And âhas a strong academic and research-driven approach (âŚ) to offer a more secure and scalable platform for smart contracts and DAppsâ, in the generated textâs words.
Although the AI believes ADA to be a good long-term pick due to the project being supported by a ârobust development team and communityâ, it is also important to note that Cardanoâs DApp and DeFi ecosystem is still in its early â most experimental â phases.
Conclusion
Despite current information, investors should not make their decisions based solely on a single source of automated generated texts. Even with proper research, the crypto market can be highly unpredictable and the landscape can change rapidly.
Itâs essential to stay informed about developments, conduct due diligence, and consider investment goals and risk tolerance.
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not financial advice