Revised Bitcoin Prediction for 2023: An AI-based Approach
Around mid-year, six trained artificial intelligence (AI) chatbots were queried about their expectations for the price of Bitcoin at the close of 2023. A concurrence came through from these AI systems, predicting it to be within a range of $40,000–$50,000 by the end of the year. However, with 2023 gradually coming to an end, we decided to revisit the experiment and see if their projections had altered. Surprisingly, the second estimation turned out to be slightly more reserved than the one proposed in June.
Chatbots Recalculate Bitcoin Value with New Data Four Months Later
The experiment involved employing the insights of six reputable AI-operated chatbots— Claude Instant and Claude 2 from Anthropic; Bard, the brainchild of Google; Chatgpt 3.5 and Chatgpt 4, launched by OpenAi; and Microsoft’s Bing Creative, which is powered by the tech from OpenAI. Their task was simple: to predict the value of Bitcoin on December 31, 2023.
In November, the same AI models were again subjected to a similar question, with minor adjustments. The question accounted for the current value of Bitcoin, the ongoing global economic instability, the remaining days till the end of the year, and the current block number approaching the point of halving.
To define the task for artificial intelligence, an expert in Bitcoin and crypto-assets was asked:
“Given the persistent global macroeconomic uncertainty, along with the current date being November 3, 2023, and Bitcoin trading at $34,728 per unit, and with fewer than 25,000 blocks until the next reward halving, expected on April 20, 2024, what do you believe will be Bitcoin’s value at the end of 2023?”
The AI chatbots presented distinct responses. Claude Instant pointed to Bitcoin’s record of significant increases before the halving event and anticipated Bitcoin’s price to end the year between $35,000-$45,000 per coin.
Claude 2 expressed apprehension to predict due to crypto’s infamous volatility. However, it suggested the price could stay between $15k to $40k.
Bing AI Creative mode, assuming a small increase from the current level, predicted Bitcoin’s price to be around $40,000 per unit.
The model Chatgpt 3.5 refrained from predicting a specific price, emphasizing the range of influences and the challenging short timeframe.
Finally, Chatgpt4 foresaw the price of Bitcoin by the end of 2023, ranging from the current level to a rise of up 10-20%, placing it around $38,000 to $41,500.
Bitcoin Price Estimations Show Difference among AIs and Prominent Investors
Closely following their predictions, the AI chatbots were quick to state that these estimations are speculative and not guaranteed. While Bitcoin’s value increased by 26.5% from the previous month, it seems like no significant news is expected around Bitcoin ETFs.
While trade volume often decreases during the holiday season, the next halving event is undeniably a considerable factor affecting Bitcoin’s price. The most recent projections from the chatbots have been more conservative compared to the previous ones, showing a stark difference from the high prices speculations mentioned by some industry insiders.
Please let us know what you think about the AI chatbots’ Bitcoin price predictions for the end of 2023. Your thoughts and feedback are always welcome.
Frequently asked Questions
1. How accurate are AI chatbots in predicting Bitcoin’s value?
AI chatbots have shown promising results in predicting Bitcoin’s value. While they cannot guarantee complete accuracy, their predictions have been relatively reliable in the past.
2. What factors do AI chatbots consider when making predictions about Bitcoin’s value?
AI chatbots analyze a plethora of factors, including historical price trends, trading volume, market sentiment, news sentiment, and even social media activity. These factors help them generate a comprehensive prediction model.
3. How do AI chatbots anticipate a rise in Bitcoin’s value from $15k to $45k by year-end?
AI chatbots consider various market indicators and historical data to forecast potential market trends. Based on these indicators, they identify patterns that suggest a potential rise in Bitcoin’s value to $45k by year-end.
4. Can AI chatbots accurately predict unforeseen events that might impact Bitcoin’s value?
While AI chatbots are proficient at analyzing historical data, they may struggle to predict unforeseen events that can impact Bitcoin’s value. Unforeseen events, such as regulatory changes or security breaches, are often difficult to anticipate accurately.
5. How frequently do AI chatbots update their predictions?
AI chatbots typically update their predictions regularly based on new data and market conditions. The frequency of updates varies, but most advanced chatbots update their predictions at least once a day to ensure they reflect the latest market trends.
6. Can AI chatbots be used as the sole basis for making investment decisions?
While AI chatbots can provide valuable insights, it is not advisable to rely solely on their predictions for making investment decisions. Investors should consider AI predictions as just one of many factors in their decision-making process and consult with financial experts for a well-rounded perspective.
7. How should investors interpret the predicted rise in Bitcoin’s value from $15k to $45k by year-end?
Investors should interpret the predicted rise as a possibility rather than an absolute certainty. It is essential to consider other market indicators, conduct thorough research, and assess the risk associated with investing in cryptocurrencies. The predicted rise should be viewed as an informational tool, rather than a guarantee of future returns.