OpenAI’s artificial intelligence (AI) platform ChatGPT has proven its usefulness in providing information on a wide range of topics, including the cryptocurrency sector, and its newest iteration was able to list all the reasons why the existence of Bitcoin (BTC) was necessary.
Indeed, Michael Saylor, who is the founder and chairman of the enterprise analytics platform MicroStrategy, has asked GPT-4 why the world needed Bitcoin, and the AI platform has provided him with a detailed response containing eight specific reasons, as quoted by Saylor in a tweet published on March 15.
From decentralization and accessibility to security
As the primary argument for the flagship digital asset, ChatGPT placed decentralization – the fact that no single entity, like government or financial institution, can control it, in turn providing more freedom, autonomy, and resistance to censorship and manipulation.
Secondly, the AI tool singled out Bitcoin’s ability to provide access to financial services to unbanked and underbanked individuals, such as in regions with limited or unavailable traditional banking systems, who only need a smartphone and internet access to use the cryptocurrency.
In the third place are the fees of Bitcoin transactions that can be lower “compared to traditional financial services, especially for cross-border transactions,” as ChatGPT highlighted, stressing this can also reduce costs for both customers and businesses involved in international transfers.
Furthermore, “Bitcoin transactions are recorded on a public, tamper-resistant ledger called the blockchain,” so “transactions can be easily verified and traced, reducing the risk of fraud and corruption.”
Deflationary, private, and programmable
As the chatbot also correctly observed, Bitcoin has a limited supply of 21 million BTC, which makes it a deflationary currency, reducing the risk of inflation, which tends to “erode the purchasing power of traditional currencies over time.”
The sixth pro-Bitcoin argument listed by GPT-4 was the greater degree of privacy when transferring assets compared to traditional transactions, thanks to the crypto transfers only being linked to a public address instead of sensitive personal information.
In the seventh place is Bitcoin’s value as an investment and a method of diversification of financial portfolios, as the AI tool noted that the largest decentralized finance (DeFi) asset by market cap had demonstrated its “potential for significant growth in value over time.”
Last but not least, is the fact that:
“Bitcoin and other cryptocurrencies enable programmable money through smart contracts, which can automate and streamline various financial processes and transactions, leading to increased efficiency and new business models.”
Bitcoin already has many believers in its bullish future who are well aware of its advantages, including Robert Kiyosaki, the author of the best-selling personal finance book ‘Rich Dad Poor Dad,’ who has long argued for Bitcoin as the alternative to the United States dollar, which he considers “fake money” and a threat to the economy.
At the same time, the maiden crypto has recently hit new multi-month highs and has demonstrated chart patterns and indicators suggesting that another bull run was in play after a period of uncertainty, having kicked off with a potential target of $1 million in the next couple of years, as Finbold reported.