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Over the recent years, technology has improved leaps and bounds, and one notable development is the rise of GPT AI, an artificial intelligence that allows machine to interact with humans in a more natural and conversational way. We cannot ignore the fact that it lessens the amount of work needed in some areas in our economy and society, thanks to the advancements of machine learning, natural language processing and deep learning, as a result GPT AI has become a powerful tool for businesses. Although we could say it gives us benefit, we can't still be so sure with the risks involved that maybe can outweighed or may potentially ruin the economy.

"GPT AI has also been used to develop trading bots that can automatically execute trades based on pre-programmed rules and conditions. These bots can monitor the market 24/7 and make trades based on real-time data, which can lead to more profitable trades and reduced risk."

Based on that statement alone, we can conclude that there will be potential risks such as trading bots that could manipulate the market which could lead to significant losses.





How about you, what are your thoughts regarding this one?

AI technology is still far from perfection. Just look at the newly launched Bing search engine by Microsoft and OpenAI. The AI bot is making mistakes. I know that there's a lot of room for improvement, when in comes to AI, but it's kinda early to expect the crypto industry to get destroyed by AI bots. ;D
Crypto trading bots exist way before AI was a thing. Did the cryptocurrency market collapse because of the trading bots? Nope.
It's theoretically possible for multiple trading bots to manipulate the cryptocurrency prices, but the costs of implementing such price manipulation would be pretty high. It's way easier to spread FUD on the social media and cause panic selling.

Trading bots get good with small liquditiy. If too many people are looking at the same thing they'll become like those signals chats or any indicator/support you thought was good until it wasn't.

If there's a chatgpt bot that's trading, the better bot will be trading based on what it expects the chatgpt trading bot to do (if there's enough liquidity following the bigger bot, the predictor one will make huge gains against it). You're not going to be offered anything for free without expecting to be the service or the product.

Trading bots is not a new concept but with AI support and machine learning, it might get better with time. But how crypto will be at risk if an AI bot is able to create a good trading bot which can execute trades with better perfection?

Market manipulation is also a very old concept and exists even before the AI became reality. So AI needs to go a long way before it can actually manipulate the market with fake orders. A risk is always there but should that stop innovation?

Precisely. That's a good point out there and its also true that it's much easier to spread rumors than pay to use bots for manipulation. It's always effective on causing massive panic when you're using the most conventional way which is through FUD. I'm not saying this for bad purposes but mostly this happens a lot before and based from that it was effective although it's used in a bad way. Right now bots are still far from completion and it still needs a lot of improvements but, we couldn't deny that it slowly shows how much opportunities and benefits it could bring to our day to day tasks.

They can not overpower the current situation for various reasons. Let us do back analysis of the ChatGPT. They are based on the data which is available throughout the internet. There is no filtering program yet or if there is any then its not doing the job correctly yet. Let us understand what we are looking at here. Whenever you ask a question to the ChatGPT then it will give you ABC answer in the first attempt. If you are not convinced then it will give you another answer. This time it could be arranged in different way, it will have more or less paragraphs, it will have more or less information. It may trim some part in the second attempt and may add some extra likewise.

The problem starts when you ask the ChatGPT same question 3rd time or more. It will only keep scrambling all your answers and keep producing almost similar response later.

Now if the implications are done to critical pattern analysis like trading then imagine what it may do? It will have it's reliance on millions of failed trades to give some positive outputs.

I don't know I do believe it's sort of "fresh" tech out of the blues.

Can you please provide a source for this quote/information? I ask this because as far as I am aware, ChatGPT/Openai GPT-3 is only indexed up to September, 2021. From that point onward it is incapable of doing things like making predictions. Therefor it would not be viable to build a trading bot based on this version of GPT AI.

The field of artificial intelligence development in general is far from perfect to have this size of impact as you might imagine.  And in the most extreme cases, I do not think that he will be able to make wise decisions in trading, because the process originally requires a margin of error in order for there to be a beneficiary.  I mean, let's imagine that everyone started using artificial intelligence bots for trading, wouldn't there be losers then?  What some may dream of is far from being realistic one day because it is simply illogical.

even when AI trading is not good for me, because after all it is no different from a trading bot, that's true. Then never or in the future AI will not be perfect compared to real human.

      The method of people like us is still different compared to AI that they will only say or do what is programmed, that's how easy it is to understand.

I hate to say this but there's no actual source for that one, and to be honest at first I was also skeptical on posting it here coz maybe some of ya'll would think it is not a reliable information but, I chose to post it here knowing that coz it is also possible  for bots to be developed that way and I think it is only appropriate for members here to share their different opinions as a way to provoke their imagination and share their unbiased opinions.

For some reason, everyone forgets that ChatGPT was created by a certain company of People. That is, they have control over it. All we see now is only a limited version of it. As far as I know, this artificial intelligence has self-awareness disabled. Then what did the developers see in the process of creating it? We are on the threshold of amazing discoveries. Regarding the topic of the bot's influence on the markets, it is impossible to predict it, even ChatGPT will not be able to do this. There are too many variables.

There is still a long way to go, and these concerns are early. Artificial intelligence robots are still in their infancy and make a lot of mistakes so far, so there are no real concerns at the moment.

But over time these bots will surely become smarter, but as always in every new invention there is a downside and a positive side, the crypto community can take advantage of the positive side and learn appropriate ways to avoid the negative side.

Contrary to your concerns, I am of the opinion that they can be leveraged more positively than their negative aspects.

There have been a lot of so-called ground breaking technologies out there which in reality did not pan out to the widespread effect that was claimed by many at the start. Let's not forget that there have been many cases where it gets information wrong and it also gathers information largely from people who have produced it beforehand. While it may put certain groups of people out of a job, which should be beneficial to everyone in the long run as automation often frees up people for other employment opportunities elsewhere, it will probably not go as far as the doom and gloom predicts - of putting everyone in IT out of a job. Bot trading has been around for decades already and as it is based on heavily outdated information it's not really that advanced in comparison.

Surely it can do a lot of things, even bad stuff. But the GPT AI has to be updated often, meaning these bots are dependent on men.

AI manipulating the market seems like a sci-fi movie. Can't see it happening since the economy is governed by people. We aren't going to deploy AI as leaders that can decide stuff for the government. AI can't determine to just add money into the system for its plan. Besides, what will AI do to the profits it make?

ChatGPT has two problems, the first one is that it's not an AI and second one is that its data only goes up until 2021. Now is 2023, things change at the speed of light. The only way ChatGPT can help people to build trading bots from the information that's available online, i.e. from stackoverflow, github, reddit. If you are good at search and know what to search and how, then you'll perform it better than so called ChatGPT AI.
And I bet, if you post a question on stackoverflow, you'll build better product.
At the moment ChatGPT is not a risk, nor an AI. It's just advanced algorithm right now and wish will remain the same.

First of all, ChatGPT is no magic, but it is an artificial intelligence that has been trained using data and that is what it uses to produce responses for the users, no matter how complex. I know that it is pretty impressive with almost everything it does, but it doesn't mean that it is totally flawless. The programming codes, or even responses sometimes, can be wrong and will always need at least a manual check before they are used somewhere else.

The trading bots or any softwares, websites, or applications that are built using it must have been thoroughly examined, tested and then deployed by human developers, and if not, no one should use them as they could put their money under risk.

Also, it would have been nice to see the resources where you read that sentence you have mentioned in italic about trading bots being developed using ChatGPT.

There is zero risk for Bitcoin from using AI trading bots. But it can be really bad for the people using them:
1) AI is prone to mistakes. A bug can make it do something stupid which can lead to you losing your funds.
2) AI can be mislead by other trading bots, it can create fake trends etc which can be abused by human traders
3) AI can be hijacked by a hacker and you never know what an army or zombie bots can do.
etc etc etc

But as a result, AI users not crypto will be the victims of this behavior.  8)

P.S. And yes, using ChatGPT mentioned by many in this thread is a particularly horrible idea. ChatGPT is a chat bot, not a trading bot. Using it for trading is the shortest way to getting rekt.

for sure they won't see it coming if the dev of the project is about to abandon their platform. we can't say, they are perfect and will automatically execute your trades always with profit. it still depends on how much info they have and how they are being set-up. don't treat this as the solution to your trading activities and that it has no room for error. the programming still depend on a human. so you can't say, you always have your perfect trading experience.

Bot trading has been here for many years now. But that didn't make any major difference in the market so far. And this ChatGPT AI is strong, can't deny that. But it has its own limitations. It has the power to provide the information and maybe guide you through some difficulties, but it's not strong enough to give you the final result. You'll have to do it on your own. Saying that, trading bot could increase your profits and you can be away while the bot will do your works. That doesn't mean that it could make a huge impact on the market. Not yet, but maybe in the future. And that's a long journey. I am sure people will come up with some new idea or technology to overcome this.

This already exists, I sold one like this years ago, and it worked exactly like this. You would give it basically a system, tell it to buy when X happened and sell when Y happened, then put in as many pairs as you want, and then some money in your exchange, and then let it do its business. If you are a moron like me, you would pick a terrible X and Y, and make a loss from it or not even understand how to operate it. I have seen people lose thousands and thousands of dollars, I have seen people make thousands and thousands of dollars. Its not about the software, its about who uses it, if you are good, this will help you, if not then nothing can.

I don't think we can be afraid of anything in the near future.In my personal opinion and using GPT, it is still not perfect and makes mistakes.He copes with simple tasks without problems, and when the question is a lot of problems for him, it already becomes difficult.Yes, this is not a bad tool as an assistant, but not as an exact solution to complex tasks that a person will cope with several times better,albeit much slower.

Though we know that GPT Ai and the likes started trending of recent, trading bots have been around for some years now, even before bitcoin and cryptocurrencies came into existence, there have been trading bots, those of us who traded forex should know what I am talking about.
This bots have existed for long, they have only managed to advance as technology is growing, which is actually expected.

In as much as this bots continue to advance, I personally do not think they area risk or threat to cryptocurrency, maybe it is a threat to human traders that can never be as fast as the bots, but for cryptocurrency in general, they are not, and possibly will never be.

Trading bots have been used by traders for years already. AI on the other hand has been very disruptive and is being used for different situations worldwide. From making articles, to programming, to even making some research papers.

Adding AI to these trading bots might have a significant upgrade into it, but I believe there will be some flaws into it and because of it, I don't see it as a risk like other users sees it. Market manipulation is your problem? It has been happening for a long time already, and no one can stop it (at least for now). GPT AI has a long way to go. It has been there for years, but it just went popular when ChatGPT has been released. Overall, AI might be used or integrated to these trading bots, but I don't see it as a risk either. More of a benefit I guess.

Yeah, it can develop bots but there's still a certain logic thinking needed for the codes that these AIs will produce. You just can't put that in the compiler and expect to it that it will run 100%.

What's scarier are not the bots or the AIs but the people, real men that are around in the market that have been said to be whales. They have nothing to do with bots but they've got money to manipulate the market and if you're too worried with AIs, you should worry more about them if you don't know how they move and influence the market because they really do.

No, True Crypto Market can't be manipulated by bots. Things have been reconfigured in such a way that a manipulation (a bad one atleast) is immediately punished that it becomes very unprofitable and dangerous to do so in the future. If they're able to move the price of a True Cryptocurrency like Bitcoin it's because the Program allowed them to do so. They are basically operating within the rules set for them else they are punished.

Currently the market is purely operating on the program and has been set to be bullish this week with little/zero chance of getting manipulated by any other program/bot.

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We are currently in a Ship surrounded by invisible enemies who desire to conquer it. Only few captains/passengers are awake doing their best to keep things moving. Wakeup and be focused.

The introduction of automation and process management through AI: in production, IT and trading has been going on for a long time. It has also been discussed for a long time that people will lose their jobs because of this. But we should not forget that someone has to serve AI and automation. It turns out that people will not lose their jobs, just to fulfill their new duties, they will need high qualifications as service personnel. However, since the AI has been trained by humans, it will not know more than us. The market is too complex a phenomenon, and neither a human nor an AI will be able to predict what the price of bitcoin will be tomorrow.

Like everyone already said, this is common and nothing new, maybe AI could find the most common ones, and collect data on how everyone else trades and what type of trades are done. Even could take out ALL trades ever made in an exchange by watching it, and then putting all of them in indicator data, showing what they look like, and showing data of which indicator was used the most and when people buy and when people sell the most commonly and then end up trading like that if you want to.

This is all great and definitely an improvement on what we have, but we have it, we have the bare bottoms what AI could do right now, and that's why it is not a risk at all, not even near a risk right now, can't be further away.

Past result results do not guarantee future ones. Do note that it is preprogrammed according to a set of rules and conditions, hence, that static parameters are untested. The degree of profitability is yet taken into account, there is still no certainty those set of parameters combined with the near real-time data is able to give sufficient results.

Market manipulation that is based on a known preprogrammed set of rules and condition are not even can be called a manipulation. Those sets are known and are able to be widely known, thus there is no chance it could achieve as a market mover.

Isn't AI and trading bots the same? They are useful but to say that they are disruptive could be situational and that is when they totally replace the human on their jobs. That is something that didn't happen yet in trading because we traders are still the one who program the bot and then we monitor it if they are doing their jobs properly or not.

There are some flaws on AIs and that is they can experience some bugs or they can glitch sometimes. There are risks if we totally depend on them. If you are talking about its risks on crypto or if it's a threat to crypto then I think no because both of them are not the same. Cryptos are a currency but AI is about the bots and automation services.

I am not getting your point. We can already manipulate markets, could have for a long time even with bots. And can you give me one example how AI ruins economy? Do you mean it will steal our jobs? Doesn't it just mean that people move to do other jobs like with every invention out there. Years ago we wouldn't have even dream that youtube influencers would be a job genre. There will be many other we didn't think was an option.

Market manipulation and trading bots have been around for years. The algorithm they use just hasn't been any good so it hasn't been up for discussion. Presumably at some point it would be possible for AI to outperform some of the top traders but we're a long time out from that point, and it's not as if all risk calculation is gone.

Could crypto be at risk for market manipulation? Sure. But that risk exists today too. I wouldn't be afraid of dabbling in crypto if your only fear is AI marketing manipulation.

well if you concern is this being used for trading then I guess stock market will also have the same worries but fear not it's not gonna be impactful that much mainly because we've got plenty of these already. even though they're more traditional but honestly what this AI technology could do more other than following text book trading pattern which honestly works just the same like any other same thing out there.
It won't be that much impactful, my best bet it just gonna create some fuss but then it'll just become yet another trading bots. I'd say wait until the fourth AI iteration then maybe we could see some concerning things.
otherwise it's something that should not be worried at all from my 2 cents.

Trading bots and AIs aren't something new on the internet. There is a lot of talk about it right now due to the hype which was created around ChatGPT. But that is still a hype and nothing else.

Crypto market has been manipulated since the beginning by whales, so what difference does an AI make on this process? And regards trading bots, keep in mind they aren't an assurance traders are going to have profit. Many traders have already lost money using such tools.

I think GPT is optimized more towards branch prediction and context of words and language, than it is engineering and design.

In its chat bot application it generates a number of text based responses to input. And tries to predict a correct contextual response. This poses little danger to crypto within the grand scheme of things. As there are virtually no plausible scenarios for the technology having the potential to disrupt crypto based technology. Perhaps someday GPT will advance to a point where it can communicate through audio and text to social engineering attacks on financial infrastructure. This could pose some danger as an attack vector.

However, the biggest risk AI poses to finance would be within an engineering and design role. Where AI could potentially design and engineer next generation hardware and technology with a potential to undermine or break current security safeguards. This is an area which has not yet manifested or enjoyed the same type of mainstream success which GPT has illustrated within a chat bot niche.

Oh yes, the author of the topic lived in a world of illusions, where a free and competitive market reigns and where only the invisible hand of the market, according to the precepts of Adam Smith, manages everything, and then hearing about GPT AI, his eyes opened and he saw a terrible threat hanging over everything. To be honest, everyone has been manipulated for a long time and artificial intelligence through trading bots by itself will not be engaged in manipulating the market and still someone from skin and bones will be behind this artificial intelligence. Therefore, you do not need to be afraid of artificial intelligence itself, but you need to be afraid of who is behind it and it's too late to be afraid of what has happened for a long time.

I will question the abreviation of AI, in relation to the GPT chat. And I will explain :)
Yes, the GPT chat is not a simple search engine. Yes, she knows how to humanize, and at a high level, to conduct dialogs. And even create text/graphic works. And it even helps to write a code, and even explains why it is right to do so right :)
But, as always, there are nuances. "Under the hood" of the GPT chat are neural networks, a "large language model", and a huge set of structured, diverse information. If I'm not mistaken, the GPT chat was "fed" in the region of 500 TB data. After that, these data were systematized, on their basis, neural networks were trained, and then experts taught the "speak" system. Those. The system works on the basis of previously uploaded data. Yes, they will further expand the knowledge base, but it will improve linguistic skills, but it will better understand what the dialogue is about. But try to ask a question to which there is no answer. For example, proof of some kind of mathematical complex task, and better logical. Either ask to invent a new full -fledged business, or a new medicine. You will receive a beautifully formulated list of already known options or something from the series "I can’t, this is limited by the rules." Those. The system, in full, does not have what describes the very concept of intellect.
A classic description of the intelligence: the quality of the psyche, consisting of the ability to realize new situations, the ability to teach and memorize on the basis of experience, understanding and applying abstract concepts, and the use of their knowledge to manage the environment. The general ability to know and solve problems that unites cognitive abilities: sensation, perception, memory, representation, thinking, imagination.
The GPT chat has part of these "properties", but .. only part. Sensation, thinking, imagination, abstraction - this has not yet been realized