Disclaimer: The information presented does not constitute financial, investment, trading, or other types of advice and is solely the writers opinion
If you are considering adding proof of work cryptos in your portfolio, chances are you have shortlisted Ethereum Classic (ETC). It is one of the few remaining options in the PoW category, but you may have also noticed that it has been overshadowed, particularly by its counterpart Ethereum.
Ethereum Classics performance so far this year confirms that it can still attract investor attention. However, the network has been losing popularity from a long-term perspective. Speaking of popularity, artificial intelligence has really taken off this year, with ChatGPT leading this charge.
Perhaps, we can leverage the power of AI to try and find out what the future has planned for ETC. I asked ChatGPT about Ethereum Classic and the interaction was rather interesting. The initial plan was to establish the depth of the AI before going deeper into the type of information that I wanted to pursue.
The first question requested ChatGPT to provide a detailed and concise explanation of Ethereum Classic and its fundamentals. Heres the response
Here is the response after switching to dark mode and requesting a shorter version
The AI seemed to have a good handle on things based on the information it provided. However, there have been incidents where it generated inaccurate information, hence the need to verify information. Now that we had a good base, it was time to up the ante a bit. But first, those keeping a close eye on ETC may have noticed that its community has not been very active. Its development has also lagged behind that of Ethereum and other networks.
Our next query focused on establishing why the Ethereum Classic network is less popular than Ethereum. It gave the following reasons
AI generated all the the above points but they are difficult to argue against. In other words, ChatGPTs answers were spot on
I was curious to find out what the AI had to say about Ethereum Classics advantages over its more popular counterpart. It responded with the following points
So far so good, but the above answers got be thinking about the kind of scenario where Ethereum Classic would achieve mass adoption. These were the brief points that ChatGPT shared
The aforementioned points highlighted some of the key advantages of sticking to a proof of work system with a heavy focus on decentralization. These characteristics would make the network and its native coin more preferable, especially in case of a harsh regulatory crackdown. Regulators, especially in the U.S, have adopted an aggressive position against cryptocurrencies but not to the extreme, yet.
While still thinking about Ethereum Classics prospects, I decided to explore whether the AI can have insightful predictions regarding ETCs prospects. More specifically, I wanted to know how soon ETC can reach ETHs $1,900 press time price. Unfortunately, the language-based AI algorithm could only do so much and predictions were the limit. Here is the answer that it provided
That would have been the end of that attempt, but I recently found out about the DAN (do anything now) jailbreak prompt which unlocks some limitations. Moreover, ChatGPTs algorithm learns and it can also organize raw data into a more useful format. Thus, an idea was born.
What if we could somehow get chatGPT to understand the history of ETCs price action, including previous price patterns? We could potentially get it to give a more concrete answer regarding price predictions. Or so I thought. Unfortunately, none of the prompts including the jailbreak offered a concrete outcome where the AI could read the price charts and identify price patterns.
After having a fine, I will do it myself moment, I embarked on assessing ETCs latest price action.
On 13 April, the price of ETC increased as the cryptocurrencys recent uptrend gathered momentum. The price of the coin increased to a high of $22.47, which is the highest point since March 18 of this year. From this years low, the coin has increased by more than 53%.
This week, the price of ETC is being driven mostly by three factors. The ongoing Bitcoin price surge, which we reported here, comes first. The coin broke through critical resistance at $30,000 during this rally for the first time since June of last year. It has already increased by more than 80% this year, outperforming Tesla, equities, and gold. Bitcoin and other cryptocurrencies, like Ethereum Classic, are closely related.
Second, the most recent US consumer inflation statistics released on Wednesday had an impact on the price of Ethereum Classic. According to the data, the Consumer Price Index (CPI) for March dropped to 5.0%, the lowest level since 2021. Additionally, core inflation declined month over month. As a result, the Federal Reserve may change course shortly. This adjustment would include raising the stalling rates and maintaining them for a while.
Last but not least, Ethereum Classic Reacts to Wednesdays Shapella Upgrade, whose activation allowed Ethereum Stackers to withdraw their tokens. The amount of Ethereum staked, according to data from Staking Rewards, is over $37 billion.
The resistance retest suggested that the price may potentially register a pivot. However, ETCs money flow indicator revealed that liquidity is still flowing into the cryptocurrency. An extended rally in the next few months may be on the cards, especially now that ETC is still heavily discounted by as much as 88%. Long-term predictions still remain within the realm of uncertainty.
Is your portfolio green? Check out the Ethereum Classic Profit Calculator
Using the ChatGPT AI did offer a significant advantage especially in terms of speed of accessing data. While it does not allow for price predictions, it does offer some valuable information. Contrary to expectations, it is still not able to do everything.
Originally posted here:
I probed ChatGPT as to Ethereum Classics price prediction, and heres the result - AMBCrypto News