The top 8 things that will happen to cryptocurrency by 2033, according to ChatGPT
The Bitcoin network launched in 2009, but the cryptocurrency sector as a whole wasn’t founded until almost ten years later. It’s worth picturing and guessing what may happen over the following 10 years, even if there are undoubtedly more events that occurred throughout that period than we can adequately explain here. As a result, we sought the opinion of ChatGPT, a very well-liked artificial intelligence chatbot, on the subject, and it offered some convincing predictions for the future of cryptocurrency.
First things first, ChatGPT predicted a “greater mainstream adoption” within that time frame since it sees BTC and alternative coins as a significant component of the world’s financial system and as a means of payment. On this front, there have been advancements in recent years. Visa and Mastercard, two industry titans, have partnered with cryptocurrency companies on several occasions to enable their millions of retailers to accept payments made in digital assets using their credit and debit cards. Despite the setbacks the sector experienced last year, the president of Visa’s cryptocurrency division recently reiterated his company’s support for the idea, saying that some digital assets “have the potential to play an important role in the payments ecosystem.”
The AI chatbot projected that as use increases, international watchdogs would want to keep a closer check on the industry’s growth. The collapse of Terra, FTX, and the ensuing contagion were the aforementioned “setbacks” from last year, which has made this a prominent issue in recent years. Though not always in a good way, the United States has been at the forefront. Even though it is home to some of the biggest cryptocurrency businesses, local officials have failed to set up adequate regulations. The Securities and Exchange Commission has also taken legal action against other companies, accusing them of selling unregistered securities without specifying whose digital assets they were selling. The regulator is also engaged in legal disputes with numerous powerful cryptocurrency companies, including Ripple and Grayscale.
A few years back, just following the COVID-19 epidemic, we had a glimpse of institutions moving into the area. On the one hand, a host of well-known legacy investors, including Ben Miller, Stan Druckenmiller, and Paul Tudor Jones III, stated their support for Bitcoin and several altcoins while criticizing other investing strategies and the Fed’s monetary policies. On the other hand, institutional investment vehicles like BlackRock (the largest asset manager in the world), One River Asset Manager, and even the enormous insurance corporation MassMutual dabbled with BTC through specific investments or outright acquisitions. This even inspired the hitherto skeptic JPMorgan to forecast that other institutions would at some time follow suit. But last year, with the implosion that began with Terra and proceeded with FTX, everything changed. You guessed it.
Because of their similarities to the first item on this list and the nature of their interactions, we shall combine Financial Services Interaction and Blockchain Adoption. In addition to using credit and debit cards, ChatGPT said that cryptocurrencies and blockchain technology may be successfully incorporated into other facets of the financial system. This entails using blockchain networks to settle substantial transactions on a larger scale as well as adding insurance policies and real estate transactions on top of this technology. The AI chatbot claims that one industry that could start utilizing blockchain more frequently is finance. It thinks the technology might be used in a variety of other industries, including government services, healthcare, and supply chain management.
A few years ago, when a few international agencies often posted papers claiming that bitcoin mining was harmful to the environment, environmental, social, and governance (ESG) investment was all the rage. They were successful because several investors, including Elon Musk’s Tesla, withdrew from BTC stakes and put pressure on miners to cease using coal fuels and switch to more environmentally friendly and sustainable energy sources. The Merge, a breakthrough that allowed the second-largest blockchain to switch from the more energy-demanding proof of work to proof of stake, was accomplished last year in part because of this. As environmental concerns continue to rise, ChatGPT anticipates that sustainability will play a significant role in the business over the coming ten years. As a result, the chatbot foresaw that ESG (and other) investors will choose cryptocurrencies that use more green energy.
The current global financial system, which is centralized, is seen as the counterparty of decentralized finance. This implies that a third party is constantly engaged in all of your transactions, agreements, etc. DeFi has been around for a while, but in 2020 its popularity skyrocketed. Projects from this specialized market, dubbed “DeFi summer,” saw dramatic increases in engagement, total value locked (TVL), and pricing. This widespread and quick acceptance, however, also brought to light some of the industry’s shortcomings, including a lack of scalability, the prevalence of obvious frauds, projects, rug pulls, as well as security risks. In the last several years, hacking and rug pulls have cost billions of dollars in cryptocurrency. Nevertheless, ChatGPT is certain that DeFi will overcome its problems, enhance the user experience, and play a significant role in the banking sector.
Not to mention, the AI chatbot cited technological advancements. After all, the Bitcoin network, along with several other initiatives that appeared in the 15 years that followed, is an innovation in and of itself. Despite its drawbacks, proof of work inspired the development of proof of stake and its several variants. As of yet, we have seen that blockchain enables the creation of a wide range of protocols with distinct goals, including DeFi, NFTs, and oracles. Ideas that we haven’t even considered yet might be used a lot more over the next 10 years.”New coins may appear with capabilities and applications we are unable to foresee at this time. These could be influenced by technological developments or shifting societal conditions and requirements. Interestingly, however, despite their rapid popularity in 2021, non-fungible tokens (NFTs) were not mentioned by the AI chatbot. It is still unclear if ChatGPT does not associate them with cryptocurrencies or just does not foresee a future for them.
