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ChatGPT was given $20,000 to invest in stocks and crypto – how he made $2,000 in one month
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The growing popularity of artificial intelligence (or large language models) – notably ChatGPT – has been help people be more effective at work, among other functions. But what about investment? NewsBTC conducted an experiment in 2023, giving the AI tool $20,000 to invest actions and crypto. The results were surprising.
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In the end, a profit of $1,946 was made after following ChatGPT’s advice for a month, with crypto investments making 130% more than stocks and Rivian and Solana having the highest return on investment (ROI). Crypto investments returned $1,359 and stocks returned $587, according to the experiment.
NewsBTC said that after a bit of training, ChatGPT suggested exactly how much of the budget to invest in each stock and coin.
Takeaways from the experience
Jonathan Millet, business consultant at NewsBTCsaid that while he was fully aware of Solana’s strong community support and widespread confidence in its stability, he did not anticipate that his profit increase would be more than double Bitcoin’s ROI.
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In terms of stocks, he said it was interesting that Rivian had the best overall ROI – despite ChatGPT’s recommendation. invest the least in this stock.
What surprised him most, however, was one particular stock that was missing from ChatGPT’s investment suggestions: Meta, which had recently launched Threads as a competitor to X, formerly known as Twitter.
“It came out at the perfect time, after the announcement that [X] limited the number of Tweets its users could see. This is not one of the stocks ChatGPT has suggested investing in, despite Threads’ rapid user growth and positive impact on Meta’s stock price. If ChatGPT had recommended investing $1,000 in Meta, that value would have reached $1,100 at the close of the study – a higher ROI than Apple or Amazon,” Millet said.
Another “issue” was one of the actions suggested by ChatGPT – Waymo. Waymo is not publicly traded, which some experts say proves that ChatGPT is still in its infancy…and not entirely reliable when it comes to investment advice.
“ChatGPT will not make you rich by picking stocks. ChatGPT could be helpful in summarizing evergreen investing techniques or different investing styles,” said Todd Stearn, founder and CEO of The Money Handbook. “Let’s use common sense. Do you really think that a free tool, or even the $20 per month version, will do all the work for you to make you rich? ChatGPT is a tool. Become skilled at using it. But it’s still up to you to make the right financial decisions.
The story continues
Other suggested actions by ChatGPT were rather expected: Apple, Amazon, Alphabet, Microsoft, Nvidia and Tesla. The worst performing suggested stock was Pfizer, which fell following news that it was canceling a drug for obesity and type 2 diabetes.
Cryptocurrency
As for cryptocurrency, NewsBTC said ChatGPT offered an initial list of coins and when asked how much to invest in each, it gave a general strategy for investing in cryptocurrency. According to ChatGPT, 40-50% should be invested in Bitcoin and Ethereum combined, and 10-20% in other major coins.
Ultimately, NewsBTC decided to invest 20% in bitcoin, 20% in ethereum, and 10% for the remaining coins including ripple, cardano, and others.
Bob Baxley, one of the main contributors to Maverick Protocolsaid that while it’s not surprising that people are using ChatGPT to design and implement investing and trading strategies for stocks and crypto, we’re still in the early stages.
“Of course, it will take time and development for these emerging technologies to reach a level where the implementation of such strategies can be considered reliable and safe,” Baxley said. “But there are certainly signs that AI can be compatible with cryptography, in particular, in many potential ways.”
For example, Baxley said, in the coming years we will see a number of crypto-specific platforms that will increasingly use algorithms – and machine learning in general – to tailor trading strategies. and investment.
Although it will take time for these technologies to become sophisticated enough to accurately reflect the risk appetite of a given trader and investor, automating these strategies will likely make investing much more efficient – and easier – for people and organizations, he added.
“Again, while there is great potential in merging these technologies into the investment space, people need to be careful,” Baxley said.
Overall, NewsBTC concluded: “Aside from providing often unreliable advice, the lack of real-time data visibility is one of the biggest flaws of relying on AI models like ChatGPT for investment orientation. »
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This article was originally published on GOBankingRates.com: ChatGPT was given $20,000 to invest in stocks and crypto – how he made $2,000 in one month