Bitcoin

Schiff Applauds ChatGPT For Not Recommending BTC Investment

04/07/2023
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ChatGPT

Well-Known Bitcoin critic Peter Schiff has appreciated ChatGPT for not recommending BTC as an investment. The famous AI bot was asked about building a recession-proof portfolio; it broke down the investment into various parts but did not mention Bitcoin, which many believe to be a recession-proof asset. 

ChatGPT Portfolio Breakdown

ChatGPT suggested a recession-proof portfolio breakdown in which…

  • 40% of the investment should be in bonds. They are a safer investment choice due to their low volatility and risk parameters and added security due to their fixed interest rate. 
  • 30% should go into defensive stocks, like FMCGs and pharma stocks, because they are the sectors providing basic needs and are rarely affected by economic cycles and slowdowns. 
  • These two allocations cover 70% of the portfolio.

Peter Schiff is known to place gold over BTC, and the next recommendation in portfolio breakdown by ChatGPT was:

  • 20% should be placed in gold, as during difficult economic times, people turn to gold and its price increases. 
  • The remaining 10% should be in cash, which could be the required liquidity to take advantage of upcoming opportunities or survive in a slow and expensive economy. 

Although gold is placed above Bitcoin in the breakdown, not everyone is happy with the argument. Warren Buffet is one the greatest investor and does not believe that gold is a better investment. He is remembered as famously saying that gold is dug out from mines, then melted and put in another hole or safe where people are paid to guard. Warren does not see any utility in gold. 

Not everyone might agree with Buffet’s views on gold, but he thinks that investment should be made in productive assets like stocks or businesses. He also has similar views on crypto; he says these assets/commodities do not produce any cash flow or earnings. Warren advises people to invest in productive assets. 

Possible reason ChatGPT Excluded Bitcoin

Many investors and experts believe the bifurcation is biased and can also be considered a conservative investor’s portfolio. However, the breakdown is good in general and caters to a large audience, but crypto believers think otherwise. As artificial intelligence analyzes data based on recent news, events, and market parameters, it could be right in not recommending Bitcoin. 

Regulatory authorities worldwide have gotten strict on crypto after the FTX saga; Ripple vs SEC case is a big deal, an uncertain regulatory scenario, and extreme volatility in the asset might have triggered ChatGPT to exclude Bitcoin from the list. Bitcoin has gained immense popularity, and many have regarded it as a world coin. But when ChatGPT did not even recognize BTC in the portfolio, some say that this could be a biased decision.

Be it gold, bonds, shares, Bitcoin, etc., investments should be made for either personal gains or desired output, and where to put the money is a personal decision. However, ChatGPT could help in providing directions to investments, but one must have a personal perspective and understanding of the market before investing. Betting anywhere on others’ suggestions might not be good.    

Source: https://www.thecoinrepublic.com/2023/04/06/schiff-applauds-chatgpt-for-not-recommending-btc-investment/