ChatGPT Predicts 8 Things That Will Happen to Crypto By 2033

Although it all started with the inception of the Bitcoin network in 2009, the cryptocurrency industry as a whole was created nearly a decade ago. While there are certainly more things that happened during this time frame that we can explain here, it’s also worth imagining what could happen within the next 10 years.

As such, we asked the wildly popular AI chatbot – ChatGPT – for its take on this issue, and it offered some compelling scenarios for what could happen in cryptography over the next decade.

1. The largest mainstream adoption

First things first, ChatGPT has identified “larger mainstream adoption” coming within this time frame as it envisions BTC and altcoins becoming a core part of the global financial network and being used for transactions.

We have certainly seen developments on this front in the past few years. Two of the industry giants – Visa and Mastercard – have signed multiple partnerships with cryptocurrency companies to allow millions of merchants to accept payments across digital assets through their credit and debit cards.

Despite setbacks in the industry last year, Visa’s chief cryptographer recently doubled down on his company’s positive views on the matter as they believe that certain digital assets “have the potential to play an important role in the payments ecosystem.”

On the other hand, Mastercard recently introduced a dedicated program aimed at helping banks launch cryptocurrency trading platforms.

2. Advanced regulatory frameworks

As adoption increases, the AI ​​chatbot predicts that global watchdogs will want to closely monitor the development of the industry. This has been a hot topic the past few years, especially after the aforementioned “setbacks” from last year – which meant the crash of Terra and FTX and subsequent infections.

The United States has been ahead, though not in a very positive light. Despite being home to some of the largest crypto companies, local regulators have failed to set proper rules.

At the same time, the SEC has gone after several companies, alleging they offer unregistered securities without detailing which digital assets are actually securities. The regulator is also involved in legal battles against several crypto giants, including Ripple and Grayscale.

In contrast, Singapore, Hong Kong and the European Union are taking steps towards regulating the industry. The European Union recently approved MiCA legislation, which is expected to start operating in 2024 for stablecoins and in 2025 for exchanges and other industry participants.

3. Increase institutional investment

We saw a glimpse of organizations entering the space a few years ago, right after the COVID-19 outbreak. On the one hand, many notable longtime investors, such as Ben Miller, Stan Druckenmiller, and Paul Tudor Jones III, have made clear their support for Bitcoin and some altcoins while undermining other investment options and the Federal Reserve’s monetary policy.

On the other hand, institutional investment vehicles such as insurance giant MassMutual, One River Asset Manager, and even BlackRock (the largest asset manager in the world) have dipped their toes with certain investments or outright BTC purchases.

This has even led giant JPMorgan to predict that other institutions could follow suit at some point. However, that all changed last year – yeah, you guessed it – after the crash that started with Terra and continued with FTX.

Despite this, ChatGPT believes that there is a high chance that the tide will turn again, especially if the two previous predictions come true.

4/5 – Financial Services Interaction and Blockchain Adoption

We’ll combine these two, given their nature and similarity to the first point on this list. ChatGPT emphasized that apart from the use of credit and debit cards, cryptocurrencies, as well as blockchain technology, can be successfully integrated into other parts of the financial system.

This includes settling large transactions on a larger scale on blockchain networks, but also integrating insurance policies and real estate deals in addition to this technology.

However, finance is just one of the areas that could start adopting blockchain more and more, according to the AI ​​chatbot. She believes that this technology can be used in several other areas, such as supply chain management, healthcare and even government services.

6. Sustainability

Environmental, Social, and Governance (ESG) investing was the word in town a few years ago, when a few global agencies were publishing frequent reports that bitcoin mining was bad for the environment. They did the trick as many investors, including Elon Musk’s Tesla, backed away from BTC positions and pressured miners to stop using coal fuel and switch to more sustainable and green energy sources.

This is also one of the reasons Ethereum completed The Merge last year – a development that allowed the second largest blockchain to move from the more power-hungry Proof of Work to Proof of Stake.

ChatGPT sees sustainability playing a huge role in the industry in the next decade as environmental concerns continue to grow. As such, the chatbot predicted that cryptocurrencies that use more green energy will be the preferred choice for ESG investors (and others).

7. DeFi expansion

Decentralized finance is seen as the opposite end of the overall financial system under which the world operates today, which is a fully centralized system. This means that there is always a third party involved in all your transactions, deals, etc.

While DeFi has been around for years, it has exploded in popularity in 2020. Dubbed “DeFi summer,” projects from this niche have skyrocketed in participation, total value booked (TVL), and prices.

However, this massive and rapid adoption also exposed some of the industry’s problems, such as lack of scalability, blatant scams, fraudulent projects, and ruggedness, as well as security issues. There are billions of cryptocurrencies lost due to rug withdrawals or hacks in the past few years.

However, ChatGPT believes that DeFi will continue to overcome its problems, improve user experience, and become a vital part of the financial industry.

8. New technological innovations

Last but not least, the AI ​​chatbot mentioned innovations in the technology sector. After all, the Bitcoin network, as well as many other projects that have emerged in the next 15 years, is an innovation in itself.

Proof of work, despite its problems, has led to the creation of proof of stake and its many variations. So far, we have seen that blockchain allows the development of many protocols with different purposes, such as DeFi, NFTs, oracles, etc.

The next 10 years could bring more benefit from ideas that we haven’t considered until now.

“New cryptocurrencies may emerge with features and uses that we cannot currently anticipate. This could be driven by advances in technology or changing needs and conditions in society.”

Interestingly, though, the AI ​​chatbot failed to mention Non-Fungible Tokens (NFTs) despite their explosive growth in adoption in 2021. The question remains whether ChatGPT doesn’t associate it with cryptocurrency or just doesn’t see a future for it. . .