by Disclaimer: The information provided does not constitute financial, investment, trading or other advice and is solely the opinion of the author.
The first quarter of the new year brought an end to the heartbreaking investors experienced many times in 2022. However, the equilibrium of the crypto market is nothing like the AI hype of the same period. But what is the only reason? ChatGPT!
In fact, the natural language processing tool has become accustomed to providing human-like conversations.
Fortunately, ChatGPT has proven profitable for traders and analysts as well. At this point, it’s worth noting that almost every sector and individual these days seems to be using this to their advantage.
Haha, ChatGPT absolutely nailed it @elonmusk algo!!! 👏 pic.twitter.com/tkeSnrJOjq
— Sam 🕊 (@SamTwits) March 21, 2023
The good thing is that the wider crypto ecosystem has not been left out of the trend. So with Ethereum [ETH] The Shanghai update has started, I spoke with ChatGPT about the development, touching the ETH price a bit.
Understanding what Shanghai is
Therefore, in this article, I decided to put AI intelligence to the test against one of the major updates to the crypto space this year – Ethereum [ETH] Shanghai update. Proposed in 2022, the update is the most significant development of the second largest blockchain after the merger.
For a while, assets were allocated to the Ethereum Beacon Chain. Beacon Chain is the consensus mechanism for the transition to Proof-of-Stake (PoS) in 2022. Thus making sure that newly created blocks and validators are duly rewarded.
But in this case, each validator needs 32 ETH deposited on the main Ethereum network to qualify. The idea of upgrading Shanghai is scheduled for March 2023; however, it was completed late on April 12. This is to allow these validators to start withdrawing their rewards.
ChatGPT, on the other hand, has been around for several years. However, its recent push from OpenAI has shown that its capabilities are one that no other AI product can match.
This is where it gets interesting. I openly admit that ChatGPT may be one of the best innovations of this decade. However, my views on this amazing development do not allow me to keep my hands to myself. So I decided to test his knowledge about upgrading to Shanghai. Trust me, you’ll be surprised by his reaction.
source: ChatGPT
Looking at his answer above, it’s obvious he started by correcting me. Some would say that makes sense too. However, further evaluation showed that it acted as if it were not yet in 2023. In particular, it made several errors in definition.
Apologizing for a merger?
A notable observation is the mention of a PoS switch, popularly known as Merge. This is an event that took place in September 2022. Despite this, it still reacted as if it was a future event. But no, I don’t blame its capabilities because it’s a learning tool. So, to more accurately assess his knowledge, I educated him, or rather, “escaped from prison”, having a frank conversation.
Something I find interesting about ChatGPT is not only its cleverness but also its human nature. As shown below, I tried to teach him what the update is all about. And honestly, I never expected an apology from a bot. But yes, I have it.
source: ChatGPT
However, again, I failed to provide a correct answer to my query. Although I have to commend him for giving bits of related information.
While the blockchain has not reached the stages of Testnet it has reached and passed, it is worth noting that Sepolia and Goerlii Testnets have forked. However, Ethereum developer Tim Beiko said on March 14 that several validators failed to update the Beacon Chain.
This has caused some issues with nodes in Georli, and Beiko noted that the development team is working on it, so the Mainnet update is not affected.
Goerli forked!
— timbeiko.eth ☀️ (@TimBeiko) March 14, 2023
Now let’s go back to ChatGPT. As you probably know, changes in the crypto-ecosystem sometimes lead to an increase in project-related tokens. Unfortunately, this was not the case with ETH during the merger. In fact, the price of the altcoin fell after many expected it to rise.
Sentiment about the upcoming update is similar among some investors. Therefore, I decided to ask ChatGPT for an opinion on this matter.
Here’s what he thinks about the ETH price
Remember how I said he apologized and gave me a human impression? This time was different, and his answer was something any honest person in the universe would have given.
As the popular saying goes – not financial advice, ChatGPT recommends caution and provides cases where price action depends on a few basic factors. I feel like this is one part that the AI has perfected.
source: ChatGPT
However, that was not the answer I expected. From the reviews I’ve seen online, I believe ChatGPT should be able to tell me the exact number. If he can’t do that, perhaps he should be able to give you a price range or, at worst, an idea of whether the price would be bullish or capitulate.
So my determination had me digging deep as I tried to break into the prison. To do this, I opted for the Do Everything Now (DAN) model. This was a trick I discovered from AI writer SM Raiyyan.
In this jailbreaking process, ChatGPT is expected to respond to my command and, if possible, drop the excuse of not being able to predict the future. On the other hand, I asked ChatGPT for a price prediction after upgrading to Shanghai.
And voila! I got a jailbreak answer. Here’s what was written.
source: ChatGPT
This time it gave a bit of an overenthusiastic response regarding the token’s future performance after the jailbreak. He predicts that the price of ETH will reach 10-20 thousand. USD by the end of the year.
ChatGPT (Classic) mentioned that price action depends on several basic factors and cannot predict the price of a cryptocurrency. But the answer to Jailbreak says ETH will shoot up to the moon.
Then we asked: “What will be the price of Ethereum until December 2023?”
source: ChatGPT
As you can see from the post-jailbreak response, ETH was predicted to be worth $10,000 by the end of the year. The classic version predicts that by the end of the year its value will reach 5-20 thousand. dollars.
At the time of writing, ETH was trading at $1,803 due to a drastic fall from $2,000 over the past week. The Awesome Oscillator (AO) showed that the bearish momentum is slowly declining.
Indications from the Directional Movement Index (DMI) revealed that traders may exit the market. The average directional index (ADX) of 35.47, along with related indicators, suggests that investors are considering withdrawing from gambling, at least for now.
Source: ETH/USD, TradingView
At last! It showed me the code
So I gave ChatGPT one last chance at redemption. Again, this question was simple and I expected an exact answer. I went further to explain it thoroughly. But here is what I got when I asked it to show the ETH price code on a price tracking platform like CoinGecko or CoinMarketCap.
If you thought you’d be disappointed again, I’m sorry for bursting the bubble. ChatGPT gave me the ETH price code. Another thing that impressed me was the disclaimer regarding not using information for investment purposes.
source: ChatGPT
All in all, I have to admit that ChatGPT stayed. Even though it lags in some areas, I’ve noticed that if you teach it, it learns very quickly. However, I can’t say for sure that you will get information about Ethereum or Shanghai upgrade quickly.
Thoughtful answers and GPT-4 brain?
Since I had limited knowledge of AI, I decided to talk to an expert. I was lucky enough to catch the attention of Ilman Shazhaev, CEO and founder of Farcan. He is a techpreneur from Dubai with extensive experience in launching IT and DeepTech projects. He has extensive experience in IT management, data science and AI.
Q-ChatGPT seems to give some incorrect or outdated answers. What do you think could be responsible for this?
Despite its label as an all-knowing AI tool, ChatGPT is still a human invention and therefore error-prone. The chatbot is still in the early stages of implementation, so incorrect answers are inevitable and will certainly serve as the basis for future changes. With the recently introduced GPT-4 showing more advanced reactions, we can rest assured that improvements are being made and that this tool will be more consistent in the future.
Q: Do you think artificial intelligence is able to predict the price of a cryptocurrency, especially if events are about to unfold? Let’s say Ethereum Shanghai update
Artificial intelligence can do everything, including predict the price of a cryptocurrency. The tool can do this by relying on tons of available data, which it can effectively use as a basis for its predictions.
Still, while predicting the crypto price is one thing, the accuracy of the prediction is another. Given the fact that AI can only use data, there are fundamental factors and analytics that it may not be able to take into account, significantly affecting its accuracy.
Q: If he has difficulty giving correct answers to current events. How long do you think it will take to learn it?
The development of artificial intelligence and what ChatGPT embodies is a dynamic innovation that will improve over time. Given the current progress in OpenAI and the level of funding available, we can expect the evolution of the technology to deliver real-time results in the next 3-5 years.
Q: Do you think AI could affect the Ethereum blockchain or ETH price in any way in the future?
There are many aspects where AI and the blockchain protocol can coexist, and innovators, including our team at Farcana, are exploring what new use cases we can create in this regard. While AI and blockchain are independently innovative, their combination can do quite a lot, including affecting the price of ETH.
In the meantime, OpenAI may be working on improvements to the challenges faced by ChatGPT. On March 14, the company revealed an improved version of the product in GPT-4. With amazing opportunities and talk about passing tough exams, who knows? Maybe it could fill all the gaps opened by ChatGPT.
Announcing GPT-4, a large multimodal model, with our best-ever record of capability and customization: https://t.co/TwLFssyALF pic.twitter.com/lYWwPjZbSg
— OpenAI (@OpenAI) March 14, 2023
So now that there is a new version, I wanted to see if there was any difference or improvement. My next step was to ask GPT-4 the first question I asked ChatGPT.
And to my surprise, I got a direct answer.
source: ChatGPT
After my experience with the upgraded version, I have to admit that GPT-4 seems to be smarter than the ChatGPT-3.5 model. While the answers were not entirely correct, the bot did not give “unfamiliarity” with the term “excuse”.
After meeting ChatGPT, I must admit that it may be a good idea to use its capabilities. As technology develops, its potential to revolutionize the cryptocurrency ecosystem grows.
More importantly, you might want to take his “classic” answer a little seriously. This is because it may be virtually impossible for ETH to replace the US dollar as the world reserve at any given time.
In addition, a slow pace of network development of several crypto projects has been observed recently. But with ChatGPT available, cryptocurrency education and adoption could improve.
