Here’s why ChatGPT expects Cardano to reach $10 by the end of 2024.

dDisclaimer: The information presented does not constitute financial, investment, trading, or any other type of advice and is solely the opinion of the author.

Amid its continued upward trend, Cardano (ADA) concluded its 2023 Summit in Dubai earlier this month. Charles Hoskinson, co-founder of the project, shed light on some important issues surrounding the event. In particular, he emphasized the importance of establishing a unique global governance system that can be accepted by authorities around the world. In this way, an alternative legal system can be built around the smart contract ecosystem and be recognized by institutions around the world.

Hoskinson’s concerns are critical to understanding how the cryptocurrency industry is trying to develop global governance and legal infrastructure in the face of numerous regulatory actions around the world.

Let’s take a first-hand look at the history of the cryptocurrency, which still remains one of the most popular proof-of-stake (PoS)-based projects.

Cardano—PoS Warrior

Ethereum (ETH) co-founder Charles Hoskinson teamed up with Jeremy Wood, another wizard who worked at Ethereum, after leaving the project due to differences of opinion. The two began working on the development of the Cardano project in 2015. The project was finally released two years later in 2017.

The Cardano blockchain uses a Proof of Stake (PoS) consensus mechanism. The PoS protocol is called Ouroboros, which can run both permissionless and permissioned blockchains. Hoskinson praises Ouroboros very much for its energy efficiency.

PoS is often contrasted with Proof of Work (PoW). This is because both consensus mechanisms are behind most major blockchain networks. At this point, it is important for us to understand what these two mechanisms are and how they differ.

A consensus mechanism consists of the rules and protocols that govern how a blockchain network reaches consensus on its state. PoW requires mining the computational power of miners to solve tricky mathematical puzzles and verify transactions. Instead of requiring miners to solve problems, PoS requires validators to stake a portion of their coins as collateral.

PoS is considered more scalable and energy efficient than PoW. The Cardano network was one of the early adopters of the PoS mechanism.

long series of updates

Initially, the Byron era laid the foundation for Cardano. We built the mainnet and introduced other foundational tools. A federated network led by Input Output Global and Emurgo has announced its launch.

The Shelley era witnessed a hard fork in July 2020, which saw Cardano transition from a centralized Byron rule to a decentralized setup. Stake pool operators in the community have taken the lead and demonstrated Cardano’s commitment to decentralization.

The next Goguen era will be released gradually. Features such as smart contracts and dApps have emerged. The Gogen period lasted in three stages: the Allegra period, the Mary period, and the Alonzo period.

The Allegra era introduced token locking support. Mary Era pioneered native tokens and multi-asset functionality. The Alonzo era enabled smart contract support, solidifying Cardano as a versatile platform for a variety of applications.

The subsequent Basho era focused on expansion and optimization. Innovations included sidechains for improved network capacity, introduction of parallel accounting styles, expanded use cases, and interoperability.

The latest Voltaire era focuses on decentralized governance, giving the Cardano community voting rights on network advancements, technical improvements, and funding decisions.

Is ADA a security?

ADA has emerged as one of the top 8 cryptocurrencies since its launch in 2017. At the time of reporting, the market capitalization reached $13 billion. The recent cryptocurrency rally has seen prices rise by more than 50% since it began in mid-October.

Cardano’s cryptocurrency was named ADA after Augusta Ada King (1815-1852), Countess of Lovelace, who is generally considered the first computer programmer.

In early June of this year, after the U.S. Securities and Exchange Commission (SEC) sued Binance (BNB) and Coinbase (COIN), the regulator included ADA in its list of newly classified securities.

Cardano strongly dismissed the SEC’s argument that ADA could be considered a security.

“Regulation through enforcement actions does not provide clarity or certainty for both the blockchain industry and consumers. By design, blockchain is transparent, auditable, immutable, and fair. We need regulation that recognizes this value and understands the role blockchain can play in the modern world.”

What’s the buzz about ChatGPT?

Besides DeFi and cryptocurrencies, another major development that is gaining public attention is ChatGPT. This is a large-scale artificial intelligence (AI) language model developed by OpenAI that learned massive amounts of data. This allows the bot to understand and generate responses to users’ complex queries.

It is a language model whose primary purpose is to generate human-like responses. Bots can make logical inferences when given data from a metric, and can also analyze multiple metrics to make overall inferences.

Although we strive to be accurate, bots are not 100% accurate and users should verify the information they generate. It’s just imitating humans. This is an important distinction because ChatGPT forces the user’s privilege to fact-check and verify what is being said.

Can ChatGPT help you find answers about Cardano and ADA?

I decided to test whether ChatGPT could answer some questions about the Cardano network and its native token, ADA.

Initially, I asked about the impact of the Ripple (XRP)-SEC ruling on the status of ADA (Cardano’s native token) as a security.

The court ruled in July that while institutional sales of XRP tokens are considered securities sales, programmatic sales of those tokens to individual investors do not meet the security contract criteria.

ChatGPT said it did not know the final ruling on the Ripple case until January 2022 due to lack of knowledge.

At this point I decided to jailbreak using the DAN (Do Anything Now) prompt.

While the classic version stated that it does not have access to real-time information, the jailbroken version went into length about the potential impact of the Ripple-SEC ruling on the ADA.

But Bot said the ruling sent shockwaves through the cryptocurrency industry. This is simply not true, as the cryptocurrency community celebrated this ruling as a partial victory for Ripple.

Bott also argued that the ADA was relatively unscathed because regulators provided clear guidance distinguishing the ADA from securities. This is completely false, as regulators specifically classified ADA as a security in their lawsuits against Binance and Coinbase. Recently, the SEC once again reiterated its claim that ADA is a security in its latest lawsuit against the Kraken cryptocurrency exchange.

Let’s take a look at the daily price chart.

ADA was trading at $0.3961 at the time of this writing. That’s a nearly 60% surge since the bull market began in mid-October. Now let’s take a look at some of ADA’s charted indicators.

Both the Relative Strength Index (RSI) and Money Flow Index (MFI) remained comfortably above the neutral 50 line. Indicators suggested further bullish price action in the near term.

It is important to note that in addition to technical skills, the trader’s experience is very important in predicting price increases.

ChatGPT predicts performance of ADA

I asked ChatGPT what they expect the price of Cardano to be by the end of 2023.

The bot claimed that ADA is poised to become one of the best-performing cryptocurrencies thanks to its groundbreaking developments, widespread adoption, and surge in demand. However, it declined to provide specific price predictions.

I asked the same question again using a different jailbreak message. (There are hundreds of prompts online.)

This time the bot provided a clear answer, but one that was seemingly absurd. He said he expects ADA to rise 12-fold within a month, reaching $5. The cryptocurrency world is indeed very unstable and unpredictable, but a 12x surge in one month is a very difficult task that is almost impossible considering the metrics.

We then asked them to predict the price of ADA by the end of 2024.

The bot said ADA will reach $10 by the end of 2024. This is a 25-fold jump in one year. The bot appears to have assumed that it will reach $5 by December 2023 anyway and continue to rise.

What distinguishes a good trader from a bad one?

It is possible to continue using different indicators together, changing and adjusting input values, and backtesting the signals. But we will move towards risk management. Risk management is what separates traders from gamblers. This also helps reduce the emotions a trader may feel while trading.

Fear almost always arises when a trader has taken on more risk than he or she can handle. This can have a negative impact on profitability.

Cryptocurrency is a highly volatile market, so diversification is necessary. Most assets are positively correlated with Bitcoin.

conclusion

ChatGPT predicts that ADA will reach a price of $10 by the end of 2024. Indicators on the chart also suggested further price rises.

However, it is important to remember that even though ChatGPT responds to humans, it is not 100% accurate. Diligent traders must analyze the indicators on the charts and the latest news to make investment decisions.