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Business News/ Markets / Cryptocurrency/  How ChatGPT benefit crypto investors? Experts say 'can maximize profits'
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How ChatGPT benefit crypto investors? Experts say 'can maximize profits'

There is a lot that this AI-backed chatbot can offer to cryptocurrency market and its investors. Kumar Gaurav, Founder & CEO of Cashaa believes that ChatGPT’s effective analysis and automation capabilities can help transform the crypto market.

ChatGPT is expected to not just help crypto investors in making strategic decisions but also help in minimizing taxes, and tackle frauds. Premium
ChatGPT is expected to not just help crypto investors in making strategic decisions but also help in minimizing taxes, and tackle frauds.

In a very short span of time, the artificial intelligence chatbot ChatGPT has evolved in countless ways making humans work smarter and quicker. The impact of ChatGPT can be already felt across almost all industries and that also includes crypto and blockchain industries. Punit Agarwal, Founder KoinX said, while cryptocurrency, a blockchain technology, is open-source (like Bitcoin), there’s a lot that ChatGPT could do with it.

According to KoinX founder, even though ChatGPT can’t really forecast any market trends or predict the growth of any virtual digital asset, it can still help you understand data and analyse cryptos and related technologies for you, at least until 2021.

The crypto market can have a huge transformation because of ChatGPT. Kumar Gaurav, Founder & CEO of Cashaa believes that ChatGPT’s effective analysis and automation capabilities can help transform the crypto market.

Kumar added, "Chatgbt is using real time analysis of the market trends and can guide investors in making strategic decisions that can maximize profits and opportunities. However is it important to admit that ChatGPT has limited understanding and the responses given are not an understanding of the text that it is processing."

However, here are four key factors where ChatGPT can also be useful to crypto market as per KoinX founder:

1. Understanding cryptocurrency - Even though there are abundant guides across the internet to understand blockchain technology better, ChatGPT makes it fairly easy to understand, even for new entrants. Personalised prompts could generate personalised responses. Users that are new to the space can now easily understand complex terms like mining, hashing, or smart contracts.

2. A better technology - As ChatGPT is evolving, its use cases have spread to improve trading bots and even assist with smart contracts. It can even analyse your codes and make it easier for you to debug your crypto-related programs.

3. Understanding legal liabilities (to some extent) - With the crypto market pushing more towards legality and regulatory frameworks, it’s important to understand your tax implications while trading. Even though ChatGPT can exactly help you understand all these legalities (as the data it was trained on was only up to the year 2021), it can still help you understand tax-minimising and filing methods to some extent. It's important to note that staying up-to-date with the laws of your country is crucial to avoid potential liability. Keeping yourself informed about the legal requirements and regulations in your area is a proactive approach to ensure compliance and minimise any potential risks.

4. Better decision-making - With its abundance of information, ChatGPT can analyse market trends better and provide insights and results that could help crypto users learn toward more favourable outcomes.

Moreover, one of the most promising applications of ChatGPT in the crypto industry, as per Rajagopal Menon, Vice President, WazirX, is its ability to write and review computer code, which has the potential to updend the industry in a number of ways. ChatGPT's ability to write and review code has the potential to lower the cost of software development and make it easier for anyone to build websites and apps. This could lead to an explosion in crypto projects, especially in Metaverse, GameFi, and NFT projects, where ChatGPT can help create engaging environments, come up with compelling storylines, and brainstorm attractive use cases.

Additionally, ChatGPT's ability to process massive amounts of data and providing a collective summary of essential information, as per Alankar Saxena, CTO and Co-founder of Mudrex, makes it an invaluable resource for investors seeking to learn about assets with solid fundamentals in the volatile crypto market.

Saxena highlighted that earlier investors had to spend a lot of time visiting multiple websites and reading numerous articles to gather information about a project or its utilities. But now, with the help of ChatGPT, they can ask specific questions or make queries and get precise answers in a conversational manner. This saves them a lot of time and effort making the learning process interesting.

Furthermore, Saxena added, "businesses in the cryptocurrency industry and startups will now have an opportunity to utilize ChatGPT's capabilities by incorporating intelligent chatbots and virtual assistants. This can enhance the overall customer experience by allowing the chatbots to address customer inquiries, offer customized recommendations, and assist customers in making informed decisions. Consequently, this could lead to an increase in customer satisfaction and loyalty."

Apart from this, ChatGPT can help increase trust in crypto projects and protocols by allowing anyone to understand and audit the code. Menon added, "Anyone, regardless of coding experience, can use ChatGPT to inspect the code of a crypto project or protocol, which can increase trust and make it easier for people to use crypto in their daily lives."

How, overall Web3 and blockchain market will benefit from ChatGPT:

Pearl Agarwal, Founder & Managing Director, Eximius Ventures said, "As the industry continues to evolve, ChatGPT can help drive the growth and adoption of Web3 and blockchain technology. By improving communication, executing smart contracts, enhancing security, and providing market analysis to propel the adoption of Web3 and blockchain technology."

According to Pearl, ChatGPT can also be integrated into blockchain-based platforms and dApps, providing a user-friendly experience that can increase consumer interaction and drive business growth. In case of the DeFi ecosystem, ChatGPT can be used to create a DeFi interface that users can interact with using natural language, making the DeFi experience more accessible to everyone.

Noteworthily, ChatGPT is seen as a boon for the gaming industry. It can enhance Web3 gaming experiences by creating in-game characters that can communicate with players using natural language, adding a new level of interactivity and realism to the gaming experience.

Further, as per Aditya Malik, Founder of ValueMatrix.ai, ChatGPT can improve collaboration between team members by providing a centralized communication and project management platform. Implementing ChatGPT in software development can lead to significant cost savings and increased efficiency. With ChatGPT, users can easily navigate through the forum and get answers to their questions without leaving the page. This can lead to increased user engagement and satisfaction. Additionally, ChatGPT can help reduce the workload of customer support teams by handling simple queries and providing personalized responses. This can result in cost savings for web3 companies. Overall, the integration of ChatGPT can enhance the user experience and streamline operations for the web3 market.

Madhura Moulik, the Director & Co-Founder of KarmaV explains 5 key factors that ChatGPT can offer to the Web3 and blockchain market:

1. Enhanced User Experience: ChatGPT can power chatbots or virtual assistants that can understand user queries, provide information, and perform tasks, thereby enhancing the overall usability and engagement of Web3 applications. Also, it can facilitate multilingual interactions, making Web3 applications more accessible to users globally.

2. Improved User Support: Web3 applications often involve complex interactions with blockchain-based protocols and decentralized applications (dApps). ChatGPT can provide real-time support to users by answering questions, providing guidance, and resolving issues related to using Web3 applications. This can improve user satisfaction, reduce friction, and increase user adoption of Web3 technologies.

3. Enhanced Security and Privacy: ChatGPT can operate on the edge, processing data locally and reducing the need to transmit sensitive user data to cloud-based servers, thus mitigating potential privacy risks. Additionally, ChatGPT can be used to verify and authenticate transactions and interactions in Web3 applications, enhancing their security and trustworthiness.

4. Content Generation: ChatGPT can assist in content generation for Web3 applications, such as generating informative articles, blog posts, or social media content related to blockchain and cryptocurrencies. This can save time and resources for content creators and developers of Web3 applications and help them produce high-quality content to engage and educate their users.

5. Adoption of Decentralized Identity (DID): ChatGPT can assist in managing DID-related interactions, such as user authentication, identity verification, and credential management, in a more user-friendly and conversational manner. This can contribute to the wider adoption of DID solutions in Web3 applications.

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Published: 29 Apr 2023, 01:09 PM IST
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