Chat GPT-4 Launch: What Does it Mean For Crypto?

Written by Hannah Parker

The world embraced the launch of Chat GPT-4 on the 14th of March, 2023. Chat GPT-4 is the most recent version of the AI language model known as GPT-3 and promises to elevate user interactions with even more sophisticated natural language processing abilities.

Let’s take a look at what this implies for the crypto industry. With the emergence of blockchain technology and digital currencies, it is more crucial than ever to have a linguistic model that can comprehend and handle the specifics of this quickly changing sector. The advanced cryptocurrency topics can be discussed in Chat GPT-4, from introducing the fundamentals of blockchain technology to examining current market patterns. The question here is – should investors embrace this, or could it be used to advance illegal activities like cybercrime? 

Should Crypto Fear AI?

AI-powered tools can assist in market trend analysis and the facilitation of better business decisions – a statement that has been supported by Web3 developers at Bitai Method . The potential for AI to consolidate power and undermine the decentralised ideals that many in the crypto community embrace, on the other hand, can be a source of worry. Despite this, how AI is created, applied, and integrated into these sectors will determine how well it adheres to the fundamental principles of autonomy and openness.

In recent crypto news, much debate has been about using AI in cryptocurrency and decentralised sectors. Some contend that AI-powered tools can offer insightful information about market patterns and assist investors in making more knowledgeable choices. For instance, Mudrex, an AI-powered cryptocurrency trading tool, asserts that it can give buyers up to 25% higher returns than conventional strategies. Others, however, are worried that AI might threaten the decentralised tenets these sectors are based on. In a recent piece, Coindesk examined the potential dangers of AI in decentralised finance (DeFi), noting instances like AI’s potential to influence DeFi protocols or consolidate power. 

How Can AI Help Crypto?

Crypto is a large part of the financial industry, and with technology growing, many economists started questioning how AI will impact the financial sector, but more so crypto. 

AI has proven to be a valuable instrument to handle some of these issues and raise the crypto business’s efficiency, security, and profitability.

The capacity of AI to improve security and stop scams is one of the most important benefits of the technology. To stop unauthorised access and ensure safe transactions, AI can use machine learning algorithms to identify suspect activity and highlight potential risks. AI, for example, can examine transaction trends and spot unusual behaviour, like abrupt large transfers that might be a sign of a hacking effort. By doing so, the crypto ecosystem’s general security can be enhanced and scams prevented.

AI can help investors make wise choices and maximise earnings, and AI can also assist with price forecasts and trading tactics. AI can spot patterns and trends in enormous quantities of data from numerous sources that may impact the price of coins. Investors can decrease their risk exposure and make wiser investment choices. Additionally, trades can be autonomously executed by AI-powered trading bots based on pre-defined criteria, decreasing the need for human involvement and enhancing trading speed and efficiency.

By offering immediate assistance and responding to commonly requested inquiries, chatbots driven by AI can also enhance customer service while saving companies resources like time and money. This can lessen the burden on the teams providing customer assistance while enhancing the general customer experience. 

Aside from offering personalised suggestions based on a customer’s purchase history and tastes, AI-powered chatbots can assist businesses in improving customer engagement and customer relationships.

By offering a standardised structure for data analysis and reporting, AI can also help the crypto business standardise. As a result, there may be less information asymmetry and greater openness, which is essential for fostering confidence and drawing more investors into the cryptocurrency environment. AI-powered analytics tools can also pinpoint problem areas and optimise processes, such as reducing transaction delays and boosting network performance.

When used correctly, AI technology can be a powerful tool for improving the crypto industry’s efficiency, security and profitability. If the crypto sector properly leverages the capabilities of AI and directs it in fraud detection, price prediction, traditional strategies, customer services or data analysis, not only will Web3 businesses reduce risk exposure but improve general customer satisfaction while staying in a rapidly competitive, growing market. As AI technology grows and betters itself, it will continue to play a fundamental role in the crypto industry.

With the introduction of Chat GPT-4, there is a wide variety of exciting opportunities for the cryptocurrency industry. With this in mind, it is crucial to understand that as AI technology develops, serious concerns about privacy, morality and the potential for AI systems to reinforce current prejudices and injustices are raised. Addressing these issues with a critical eye and a commitment to responsible innovation will be critical as the crypto industry investigates the possible advantages of Chat GPT-4 and other AI technologies. The launch of Chat GPT-4 should cause us to pause and consider the wider societal ramifications of AI and its impact on the direction of finance and technology. Since AI technology is new, we can only wait and see how the future of technology unfolds and hope that it doesn’t end like an episode of Black Mirror.