Cryptocurrencies, particularly Bitcoin, have been around since 2009. However, the Bitcoin business has been in a slump in recent years. Furthermore, artificial intelligence (AI) applications such as ChatGPT have grown in popularity in recent years. In light of this, AI was questioned about its projections for the cryptocurrency business over the next ten years, and here are its predictions.
In the next ten years, ChatGPT predicts a “greater mainstream adoption” as it sees Bitcoin and other alternative currencies playing a significant role in the world’s financial system and being used for transactions.
This assertion is a reflection of recent events in which Visa and Mastercard, two industry giants, signed numerous agreements with cryptocurrency businesses to enable their millions of merchants to accept payments made in digital assets using their credit and debit cards.
Although there have been several setbacks in the industry in recent years, Visa’s crypto head has allegedly doubled down on his company’s positive views on the matter as they believe certain digital assets “have the potential to play an important role in the payments ecosystem.” On the other hand, Mastercard has recently introduced a designated program aimed at helping banks launch cryptocurrency trading platforms.
As the adoption rate rises, ChatGPT has also forecasted that in the following 10 years, international watchdogs would pay more attention to the industry’s growth. But it’s important to note that this has been going on for a while.
After the aforementioned “setbacks” from last year, such as the collapse of Terra, FTX, and the ensuing contagion, international watchdogs have been monitoring the business and developing a number of legislation to regulate it.
The United States has been at the forefront of the cryptocurrency industry despite being home to some of the biggest corporations, albeit not in a very favorable way as the local regulators have failed to set up adequate standards.
Decentralized finance is purportedly seen as the opposition to the current, wholly centralized, global financial system in which we live. In essence, this means that a third party is always involved in all of your transactions, deals, etc.
DeFi has been around for a while, but its popularity has only recently skyrocketed in 2020. The aforementioned event, called “DeFi Summer,” saw projects from this market segment experience explosive growth in terms of engagement, total value locked (TVL), and prices.
However, this widespread and quick adoption also brought to light some of the industry’s shortcomings, including a lack of scalability, the prevalence of obvious frauds, fraudulent projects, and rug pulls, as well as security risks.
It is also important to note that billions of dollars worth of cryptocurrency have been lost in recent years as a result of hacks or rug pulls. Nevertheless, ChatGPT is confident that DeFi will overcome its problems, enhance the user experience, and play a significant role in the banking sector.