Victor Ugochukwu · Dec 14, 2020 . 5min read
GPT-3: AI prefers Bitcoin cash over Bitcoin
OpenAI's new language predictor GPT-3 answers questions about the future of Bitcoin and cryptocurrencies.
By Shilika · Jul 20, 2020 . 6min read
GPT-3 is the most sophisticated text predictor in the world. OpenAI, the builders, invited a select few to test it. The current model has an incredible 175 billion different parameters. For context, GPT-2 had 1.5 billion parameters, which was a landmark achievement on its own.
The way it works is that the user gives it a chunk of text as an input. It then responds by guessing based on analysing virtually all the text on the internet. Kirk Ouimet, a researcher decided to have a conversation with GPT-3 about Bitcoin. He primed the AI by asking it questions in such a way that it would take on the identity of a being with higher wisdom.
At first, the Kirk asked GPT-3 a basic question about the history of currency. He then asked it what the most dominant currency in the world is today. The AI answered correctly (the US dollar). It was also able to respond at length about why the dollar is the most dominant currency today.
AI Chooses Bitcoin Cash over Bitcoin
Without mentioning cryptos or Bitcoin, the researcher then asked GPT-3 about a potential new currency that may take over the dollar. GPT-3 became instantly aware of what the researcher was talking about and responded by giving a brief introduction about Bitcoin. However, it was also aware of the limitations of the same. It was able to explain why it thought Bitcoin might not be able to replace the dollar. It highlighted the Bitcoins problem of scale and volatility.
When asked if it thought that there was any other cryptocurrency that could beat the dollar, GPT-3 responded that if there were to be, it would have to do so very soon. It commented on how it was important for people to have the option to serve their specific needs.
Kirk then asked GPT-3 about Bitcoin Cash (BCH). GPT-3 spoke favourably about BCH. It believed that it was an improvement over Bitcoin. It stated that for BCH to be adopted by the masses, it must ensure that it can be stored safely and that it need not rely on third parties for transactions.
On the problem of scaling
When asked about how the problem for scaling can be solved in cryptocurrencies, GPT-3 spoke about something known as ‘block-lattice’. Essentially, in block-lattice, instead of having the entire history of all transactions being downloaded by everyone, you would only have the last part of the transaction and not the entire chain. The problem with blockchain as it is now is that the ledger grows faster than it can be downloaded. Block lattice addresses this.
When asked if a cryptocurrency were to replace the dollar, would it have to be based on block-lattice, GPT-3 answered that it is possible, but this technology also has its downsides.