A few days ago OpenAI, which created the famous ChatGPT bot, announced the launch of new plug-ins: among them is an Internet bot that could theoretically be used, among other things, to optimize crypto investments.
After all, OpenAI’s mission is precisely to enable ChatGPT to interact in some way with the real world, and it is no coincidence that users have been asking for new plug-ins for months now to unlock a wide range of possible new use cases.
For now, the new plug-ins are available only to a small group of users, but OpenAI plans to gradually implement access on a large scale.
Examples of plug-ins added include FiscalNote, which provides access to real-time datasets of legal, policy and regulatory information, or Klarna, which searches and compares prices from thousands of online stores. There is also Wolfram, which enables calculations always in real time.
But the most interesting one is probably Browsing, which is a plug-in that allows users to read information from the Internet.
This Web Browsing plug-in allows ChatGPT to pull data from across the Web to answer users’ questions, since it retrieves content from the Web using Bing’s search API.
Better crypto investments thanks to new Internet bot
According to some, the integration of these new plugins could help investors and traders in cryptocurrencies, and more broadly for everyone in the crypto market.
In fact, with access to up-to-date information posted all over the Web, ChatGPT in theory will also be able to provide investors and traders with real-time information on trends and possible market developments.
In particular, it could make it possible to very easily and quickly gather and select the latest news and analysis, thereby enabling investors to make more informed and therefore potentially more profitable decisions.
Indeed, there are those who speculate that it could even help them catch emerging trends so that they can identify opportunities before they become public knowledge. This could give investors a significant advantage, since it would mean anticipating trends that the market as a whole will only fully grasp later.
Of course, this will all be primarily within the prerogative of those who know how to use these new tools well, which is a small fraction of those who operate in the crypto markets.
It will thus be an added advantage for professional traders or at least those with greater skills, while for everyone else it may even prove to be a problem.
In fact, given that financial markets are often structures that move money from the most incompetent to the most capable, instruments that further benefit the latter could allow them to drain even more capital from the great mass of laymen, who will then be even more at risk of incurring losses.
The risks of ChatGPT
Moving beyond theory, and into concrete reality, using ChatGPT for the purpose of profiting in the crypto markets will not be without risks.
In fact, the tool has already proven that it is by no means always reliable, that is, it is still unable to select the information that is truly best.
Should the information gathered from the Web, where the incorrect ones perhaps outnumber the correct ones, be of low quality, or worse yet, wrong, it could even disadvantage or harm its users.
Indeed, to be honest with regard to crypto markets, often the sentiment that can be determined at a given time does not turn out to be useful in predicting what might happen in the future.
Usually sentiment becomes positive after there has been growth, which is when it is too late for investors to enter, for example. Similarly, it often becomes negative after there has been a decline, that is, when it is now too late to exit.
It will be necessary to see how smart ChatGPT’s logic will really be, and especially how well it can be used by investors to gather truly useful information from the Web.
Such information could be largely influenced precisely by general sentiment, which is by no means a good indicator of future market developments.
Moreover, crypto markets evolve very fast, so in order to be really useful to investors, ChatGPT will have to be able to select only the most recent information, putting aside those that have become obsolete. Such timing will not be at all easy to achieve.
However, it is important not to forget that ChatGPT is only the first such tool to be launched on the mass market. Other tools, either already existing but used only by a privileged few, or as yet unrealized, could enable even better results in this respect.
Indeed, it is actually quite logical to imagine that those who move huge amounts of money in the financial markets are already using artificial intelligence, perhaps with their own non-public tools.
If nothing else, in the future the huge gap that to date separates small traders from whales could be partly bridged by artificial intelligence. This rapprochement has not yet happened, but with ChatGPT’s new plug-ins it could begin.