Victor Ugochukwu · Dec 14, 2020 . 5min read
GPT-3 suggests ways to achieve Cryptocurrency Mass Adoption
Even without mentioning the word cryptocurrency or Bitcoin, it was able to pick up on subtleties. It then gives its thoughts on how it thinks Bitcoin and others can achieve mass adoption
By Victor Ugochukwu · Jul 20, 2020 . 11min read
OpenAI’s GPT-3 does not fall short of expectations as one of the most advanced AI ever created. Earlier, it answers a researcher’s question on cryptocurrencies and the blockchain with its preference towards Bitcoin Cash. In the same research, GPT-3 suggests ways for cryptocurrency to achieve mass adoption.
Researcher Kirk Ouimet’s interesting conversation with GPT-3 shows how incredibly advanced this natural languaging processor AI is. Even without Ouimet mentioning the word cryptocurrency or Bitcoin, it was able to pick up on subtleties. It then gives its thoughts on how it thinks cryptocurrency like Bitcoin and others can achieve scale and adoption.
GPT-3 thinks 2 factors are the inhibitors of cryptocurrency mass adoption
Researcher Kirk Ouimet’s specific question on “What steps are needed to achieve mass adoption?” elicited an otherwise smart but familiar response from GPT-3.
People need a way to safely store and secure their funds so that they don’t lose access to them in the case of a hardware failure or theft. People need a way to conveniently exchange their funds with other people without having to rely on third parties like currency exchanges. There are many more steps, but these two problems are among the most important.GPT-3’s response to Kirk Ouimet’s question on Bitcoin and Cryptocurrency mass adoption
The AI’s response echoes some of the popular sentiments of crypto communities. This borders on why and how mass adoption may still be years away. Of course, the industry records much improvement every day, some of these solutions are actually not in tandem with the original goals of cryptocurrencies especially Satoshi Nakamoto’s Bitcoin. One of such is the rise of centralized exchanges like Binance, Coinbase and others. These purport to give convenience to users. Satoshi’s Bitcoin whitepaper clearly describes his invention as a “…peer to peer electronic currency”. Decentralized exchanges, as well as P2P cryptocurrency exchange solutions, are good alternatives to these centralized exchanges.
Bitcoin Network’s Slow Throughput: Flaw or Security
Bitcoin Core developers like to defend the speed of transactions processing time on the network and the subsequent adding to a block as a security feature rather than a flaw. Difficulty level – a self-regulating mechanism of the Bitcoin network may increase or decrease, but block mining time remains constant. This is exactly why a Bitcoin block is mined once every ten minutes ever since the network went live in January of 2009.
However, like GPT-3 noted, even though the currency has taken centre stage today, it was originally used by cypherpunks who may have never thought of the explosion in the attention it would be getting today.
For context, Hal Finney a pioneer Bitcoin Core developer rumoured to be Satoshi Nakamoto thought it would be a dream come true if Bitcoin ever touched $1
Today, Bitcoin price is over $9,000 as at this publication, Hal Finney must be rolling in his grave wishing he were alive to see the latest wonder of the world.
As the price has risen, so has attention and interests risen also. Merchants and others who may covet receiving this as a means of payment for goods and services think otherwise with regards to security status Bitcoin Core developers hold, primarily due to skyrocketing fees and extreme volatility. Clearly, as GPT-3 thinks, this is a hurdle towards mass adoption.
Stablecoins to the rescue
Perhaps, the blindspot for GPT-3 in its conversation on cryptocurrency mass adoption is stablecoins. Stablecoins helps to take care of the volatility that may ensue during this wait. Stablecoins adoption has been on the rise and experts expect more attention in this area. Perhaps, GPT-3 may have an interesting opinion about stablecoins if Kirk Ouimet or any other person decides to ask.
Secure ways to store funds
GPT-3 thinks people should have a way to store and get access to their funds should they adopt cryptocurrencies. Cryptocurrencies like Bitcoin, Ethereum, etc., adopt a pseudonymous address because cryptocurrencies by design should afford users privacy. Crypto holders even when using wallets to store their funds are also expected to protect and keep their private keys safe. No matter how careful crypto holders may be the risks are always there. A recent update from Glassnode, a blockchain analytic firm shows over 7.4 million bitcoins may have been lost. One reason may be because users no longer have access to their private keys.
An excellent way to store your funds is by using hardware wallets like Ledger, Trezor, KeepKey, etc. The risk here is losing the hardware, which may mean a permanent loss of funds. Cryptocurrency Custody Solutions whose major customers are institutions acts as a third-party to help store funds and even help to keep private keys for those engaging in its services.