ChatGPT Makes the Case for and Against Cryptocurrency

• Insider’s Phil Rosen asked ChatGPT to weigh in on the pros and cons of cryptocurrencies.
• The viral language bot offered five reasons for and five reasons against the digital asset class. 
• The language tool also emphasized that everyone should do their own research and consult a financial advisor before making any investment decisions. 

ChatGPT has demonstrated proficiency in writing articles, real-estate listings, and even dating-app messages. But what does OpenAI’s buzzy artificial intelligence tool have to say about cryptocurrencies?

The bot doesn’t have access to real-time markets data, and its knowledge only goes up to 2021, meaning it is oblivious to all the events that transpired during the 2022 crypto crash — including FTX’s collapse.

Still, it has plenty of historical intel to work with. Here’s what the bot had to say in response to the query “make the argument for/against crypto,” while also emphasizing that everyone should do their own research and consult a financial advisor before making any investment decisions. 

ChatGPT makes the case against crypto

1. Volatility: This makes crypto “a risky investment and makes it difficult for them to be used as a reliable means of payment.”
2. Security concerns: Decentralization makes crypto vulnerable to “hacking, fraud, and other security risks, and there have been several instances of major exchanges and wallets being hacked and funds being stolen.”
3. Regulatory uncertainty: The lack of regulation “creates uncertainty for investors and raises questions about their legitimacy and stability.”
4. Lack of acceptance: “Cryptocurrencies are not yet widely accepted as a means of payment, and it can be difficult to find merchants who accept them. This limits their usefulness and practicality for everyday use.”
5. Energy consumption: Cryptocurrency mining requires significant energy use, and this “raises concerns about the environmental impact of cryptocurrency mining and the sustainability of the technology.”

ChatGPT makes the case for crypto

1. Decentralization: “This makes [crypto] resistant to censorship and government control, and gives users more control over their own funds.”
2. Efficiency: “Cryptocurrencies have the potential to offer faster and more efficient transactions compared to traditional financial systems. Transactions can be processed quickly and with lower fees, making them a more accessible and affordable option for many people.”
3. Financial privacy: “Cryptocurrencies offer greater financial privacy compared to traditional financial systems, where transactions can be tracked and monitored by financial institutions and governments.”
4. Innovation: “Cryptocurrencies are driving innovation in the financial sector and beyond, and have the potential to bring about new and improved financial products and services.”
5. Accessibility: “Cryptocurrencies have the potential to make financial services more accessible to people who may not have access to traditional banking services, such as those living in underbanked or unbanked areas.”