A subject as old as time, if time were a few years old: Will Ethereum change Bitcoin in terms of total market capitalization? Will ETH outperform BTC?
This has been the “to be or not to be” in the cryptocurrency industry, and it pits communities against one another like no other. It is true that BTC has been the predominant market leader since it was created, but a few years ago, who would have thought that another cryptocurrency would have a market capitalization of more than 40% of Bitcoin? Well, that is the case with Ethereum today.
So, we decided to do what any sane person would do in 2023: ask an AI language model what it thinks(?). ChatGPT is all the rage in 2023, so who better to ask?
Can Ethereum change Bitcoin?
First things first, we asked ChatGPT with this exact question: “Do you think the price of Ethereum can change the price of Bitcoin in the next 5 years?”
The AI came back to us and explained that this is a result that is “uncertain and depends on various factors.”
These include:
According to ChatGPT, Ethereum’s robust ecosystem and use cases such as DeFi, NFT, and more could help turn Bitcoin around.
Broader use cases for Ethereum, such as DeFi (decentralized finance), NFTs (non-fungible tokens), and smart contracts, could drive broader adoption and thus increase its value relative to Bitcoin.
This is where it got interesting. You see, ChatGPT’s most recent knowledge cap on this topic was in September 2021. This means it was before Ethereum transitioned to Proof of Stake.
That being said, the second factor, according to the AI, is:
ChatGPT argues that “the successful completion of planned Ethereum upgrades, such as Ethereum 2.0, could significantly affect its price. This upgrade plans to improve the scalability, security, and sustainability of Ethereum, which could increase its attractiveness to investors and users.”
Well, Ethereum’s transition to proof-of-stake aka “The Merge” is already a given on our timeline and so far, it hasn’t really helped getting there.
What else could help ETH turn BTC around?
The investment can also take place under a few more conditions, according to ChatGPT. Regulation, for once, is one of the factors.
Changes in cryptocurrency regulation could affect prices. Tighter regulations could lower prices, while looser ones could raise them.
While it sounds like a Captain Obvious answer, it is true. Favorable regulation could boost the price of ETH, but so far, the US government has taken a predatory approach, calling out many of the projects built on Ethereum securities.
Going forward, the AI believes that market sentiment is also important. If enough investors believe that Ethereum is the best form of investment, it would inevitably lead to investment.
Last but not least, broader economic factors, including inflation, economic growth, and general changes in the financial sector, could also have an impact.
In conclusion, ChatGPT took a more cautious position and did not provide a direct yes or no answer. This was expected, but what arguments would an AI use to structure an answer to such a question?
Of course, none of the above should be construed as financial advice. The content is for educational and entertainment purposes only and we hope you had fun with it.
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