The growing popularity of artificial intelligence (or large language models), especially ChatGPT, is helping people work and do other functions more efficiently. But what about investments? NewsBTC recently conducted an experiment that gave AI tools $20,000 to invest in stocks and cryptocurrencies. The results were astonishing.
In the end, after following ChatGPT’s advice for a month, I made a profit of $1,946. Cryptocurrency investments generated 130% more returns than stocks, with Rivian and Solana achieving the highest return on investment (ROI). According to the experiment, investing in cryptocurrencies yielded a return of $1,359, while equities yielded a return of $587.
According to NewsBTC, after a little training, ChatGPT suggested exactly the budget to invest in each stock and coin.
Jonathan Millett, Business Consultant NewsBTCsaid he was fully aware of Solana’s strong community support and widespread trust in its stability, but did not expect its profit increase to exceed 2x Bitcoin’s ROI.
As for stocks, he said it was interesting that Rivian achieved the highest overall ROI, despite ChatGPT recommending the least investment in this stock.
What surprised him most, however, were certain stocks that were not included in ChatGPT’s investment proposal. Meta, which recently released Twitter competitor Threads.
“The release was perfectly timed after the news that Twitter was limiting the number of tweets that users could see. This is not one of the stocks ChatGPT suggested investing in. If ChatGPT recommended investing $1,000 in Meta, this value had risen to $1,100 by the end of the study, more than Apple and Amazon. High ROI,” Millett said.
Another “problem” was Waymo, one of the stocks proposed by ChatGPT. Waymo is not listed. Some experts believe that ChatGPT is still in its early stages, proving that it is not entirely reliable when it comes to investment advice.
“ChatGPT doesn’t make you rich by picking stocks. ChatGPT may help you summarize evergreen investment methods and different investment styles,” said Todd, founder and CEO of ChatGPT. Mr Stern said. money manual. “Use your common sense. Do you really think that a free tool or even a $20/month version will do everything you need to get rich? ChatGPT is a tool. Be proficient with it. But it’s still up to you to make the right financial decisions.”
Other stocks ChatGPT suggested were more expected: Apple, Amazon, Alphabet, Microsoft, Nvidia, Tesla. Pfizer was the worst-performing stock on the list, falling on news of the discontinuation of obesity and type 2 diabetes drugs.
As for cryptocurrencies, NewsBTC said that ChatGPT provided an initial list of coins, asked how much to invest in each, and provided general investment strategies for cryptocurrencies. According to ChatGPT, he should invest 40%-50% in Bitcoin and Ethereum combined, and 10%-20% in other prominent coins.
Ultimately, NewsBTC decided to invest 20% in Bitcoin, 20% in Ethereum, and 10% in the rest of the coins (including Ripple, Cardano, etc.).
Bob Baxley, Core Contributor maverick protocolHe said it’s not surprising that people are leveraging ChatGPT to design and implement investment and trading strategies for both stocks and cryptocurrencies, but it’s still in its early stages.
“So, of course, it will take time and development for these emerging technologies to reach a level where the implementation of such strategies can be considered credible and safe,” Baxley said. “But there are certainly indications that AI could be compatible with cryptocurrencies in many ways, especially potentially.”
For example, Baxley said the next few years will see the emergence of a number of crypto-focused platforms that will increasingly leverage algorithms, and machine learning in general, to tailor trading and investment strategies.
While it will take time for these technologies to become sophisticated enough to accurately reflect the relevant risk appetite of a particular trader or investor, automating such strategies will make investments much more affordable for people and organizations. It will likely be efficient and easy, he added.
“Again, the convergence of these technologies in the investment space offers a lot of great potential, but people should be careful,” Baxley said.
Overall, NewsBTC said, “In addition to providing unreliable advice, the lack of real-time data visibility is one of the biggest flaws in relying on AI models like ChatGPT for investment guidance.” concludes.
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