ChatGPT Predicts Mainstream Adoption of Crypto Within the Next Decade
The cryptocurrency industry has been around for roughly a decade, and the highly popular artificial intelligence chatbot, ChatGPT, has provided some exciting scenarios on its potential within the next decade. According to the chatbot, a “greater mainstream adoption” is expected to occur.
This prediction appears to be well on its way, as major credit card companies Visa and Mastercard have both teamed up with multiple cryptocurrency firms to enable their merchants to accept digital asset payments.
Visa’s crypto head has expressed his enthusiasm for the digital asset revolution, noting that “certain digital assets have the potential to play an important role in the payments ecosystem.” Mastercard has also recently launched a program to assist banks in creating cryptocurrency trading platforms.
As the adoption of cryptocurrencies rises, ChatGPT predicted that global regulators will be keeping a closer eye on the industry due to the number of “setbacks” experienced in the past year. The United States has been at the forefront of this, with the lack of proper rules being the main criticism. The recent MiCA legislation approved by the European Union, which is expected to come into effect in 2024 for stablecoins – and 2025 for exchanges and other industry services – will provide a better regulated framework for cryptocurrencies.
A Glimpse into the Evolution of Institutional Crypto Investment
The emergence of institutional crypto investing began a few years ago in response to the COVID-19 outbreak. Several prominent legacy investors, such as Ben Miller, Stan Druckenmiller, and Paul Tudor Jones III, proclaimed their support for some cryptocurrencies while denouncing other investments and the Fed’s fiscal policy. Institutional investment funds, including MassMutual, One River Asset Manager, and BlackRock (the world’s foremost asset manager) engaged in select investments or direct BTC purchases. Even banking giant JPMorgan forecasted that other institutions may follow suit at some point.
ChatGPT predicts that there is a substantial chance the trend will repeat itself, especially if their two predictions come to fruition. These include large-scale settlements on blockchain networks along with insurance policies and real estate deals built atop this technology. It also envisions the use of blockchain in other areas, such as inventory management, healthcare, and government services.
Recently, the notion of environmental, social, and governance (ESG) investing has gained momentum, due in part to the reports that bitcoin mining is a detriment to the environment. Tesla, headed by Elon Musk, bowed out of their BTC positions and pressured miners to switch to greener and more sustainable energy sources. This was a factor in Ethereum’s development of The Merge last year, which enabled the second biggest blockchain to transition to proof of stake from proof of work, a more energy consuming process.
ChatGPT foresees that sustainability will play a large role in the crypto industry moving forward, and that cryptocurrencies powered by green energy will be favored by ESG and other investors.
DeFi Summer: What Does the Future Hold for Decentralized Finance?
Decentralized finance (DeFi) has been around for years and is seen as the counterparty to the centralized financial system of the world. Transactions, deals, and other activities entail a third party, which is why DeFi has grown in popularity. 2020 was dubbed as DeFi Summer, and projects within the niche experienced a surge in terms of engagement, Total Value Locked (TVL), and prices.
Though cryptocurrency industry issues such as scalability problems, scams, fraudulent projects, and rug pulls have caused billions of dollars in crypto losses lately, ChatGPT believes that DeFi will not only survive these issues, but will also improve the user experience and become a vital part of the financial industry. Bitcoin and other projects that emerged after it have sparked a number of protocols, from DeFi to NFTs to oracles, prompting the notion that the next ten years could bring new and creative uses for them.
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