My days as a newsletter writer are numbered.
I asked the latest version of Chat-GPT this question:
What Caused Bitcoin to Crash in 2018?
And this is the answer I got:
Bitcoin experienced a significant crash in 2018 due to a combination of factors. Here are some of the primary reasons:
- Market correction: The price of Bitcoin had skyrocketed in late 2017, reaching its peak around $20,000 in December. The rapid increase in value led to a market bubble, which eventually burst in 2018 as investors started selling off their holdings to realize profits, leading to a sharp decline in prices.
- Regulatory crackdowns: Governments and regulatory bodies around the world began to scrutinize cryptocurrencies and implement tighter regulations. This increased scrutiny dampened investor enthusiasm and led to uncertainty in the market.
- Security concerns: High-profile hacks and thefts involving cryptocurrency exchanges and wallets raised concerns about the security of digital assets, causing some investors to lose confidence in cryptocurrencies.
- Scaling issues: Bitcoin faced technical challenges related to scaling and transaction processing times, leading to higher transaction fees and slower confirmations. This hampered its potential for widespread adoption and made other cryptocurrencies more attractive.
- Market manipulation: There were allegations of market manipulation and “pump and dump” schemes, which may have contributed to the crash by artificially inflating prices and then suddenly selling off large amounts of Bitcoin.
- Initial coin offering (ICO) boom and bust: The ICO craze in 2017 and early 2018 led to a large number of new cryptocurrencies entering the market, many of which had little to no real-world use or value. The eventual failure of many of these projects contributed to a loss of confidence in the overall cryptocurrency market.
- Shift in investor sentiment: As the price of Bitcoin and other cryptocurrencies began to drop, the sentiment among investors and speculators turned increasingly negative, leading to a snowball effect of selling pressure.
- These factors combined led to a significant drop in Bitcoin’s price throughout 2018. It’s important to note that cryptocurrency markets are known for their volatility, and large price swings are not uncommon.
(End of Chat-GPT4)
If you don’t know what Chat-GPT4 is, it’s an Artificial Intelligence (AI) project run by the OpenAI organization which is owned in party by Microsoft, and it’s taking the tech world by storm.
I don’t know if you are impressed after reading the above paragraphs or not, but let me tell you, it’s better copy than 90% of what has been sent to me over the years by freelance writers.
I have spent a good part of the last couple of days playing with Chat-GPT4, watching Youtube videos, reading tutorials, and I’m convinced it’s going to radically change the financial publishing arena.
It’s also going to change how people do investment research.
One thing to note is how Chat-GPT4 gives better answers if you give it better prompts (questions).
There are already websites that curate “prompt” templates so you can ask better questions. Here is a template example that I slightly modified for crypto.
You are a talented analyst at a top-tier market research firm, a graduate of Harvard Business School. Coach me to create content that connects with people interested in investing in crypto. What open-ended questions do I ask? Prioritize uncommon, expert advice.
As a content creator focused on connecting with people interested in investing in crypto, you want to ask open-ended questions that provoke thoughtful discussions and insights. Here are ten uncommon, expert questions to prioritize:
- How do you evaluate the long-term potential of a cryptocurrency beyond its current market value and hype?
- In what ways can the underlying technology of a cryptocurrency, such as its consensus mechanism or scalability, impact its investment potential?
- How do you assess the regulatory landscape for cryptocurrencies and determine its influence on your investment decisions?
- What strategies do you employ to manage the risks associated with investing in crypto assets, particularly during periods of high volatility?
- How do you determine the ideal portfolio allocation for cryptocurrencies, considering factors such as investment horizon, risk tolerance, and diversification?
- How do you factor in the environmental impact of cryptocurrencies, particularly those that rely on energy-intensive mining processes, into your investment decisions?
- What role do cryptocurrencies play in decentralized finance (DeFi) ecosystems, and how does their involvement in these platforms impact their investment appeal?
- How do you evaluate the credibility and effectiveness of the teams behind cryptocurrency projects, particularly in the context of a rapidly evolving industry?
- What are your thoughts on emerging trends in the crypto space, such as non-fungible tokens (NFTs), digital identity, and decentralized autonomous organizations (DAOs), and how do these developments impact your investment strategies?
- How do you approach tax implications and reporting requirements associated with cryptocurrency investments, and what resources do you rely on to stay informed on this front?
Take that output from Chat-GPT, slap it into a PowerPoint presentation, and you too can become a crypto-investment guru.
Again, you may look over the copy and think nah, it’s just boilerplate. But it’s well-researched boilerplate. And there are already a host of websites that can massage the copy further towards your goal.
There are websites that can dumb down the copy. There are websites that can summarize the copy. And there are websites that can make the copy more SEO-friendly for Google.
Finally, note that Chat-GPT is severely limited right now because it has been deliberately restricting to having access to data from the Internet from 2021 and earlier. So it can’t access real-time financial information.
But when it does, oh boy, that’s a game-changer.
That’s why I’m learning about Chat-GPT, and playing with it, right now.