Ethereum continues to be in second place in the ranking of all cryptocurrencies by market capitalization, that is, the product of the number of coins by their rate. This lasts for a long time, in connection with which fans of digital assets continue to discuss the prospects for bypassing the ETH capitalization of Bitcoin.
Previously, experts have already expressed an opinion about the likelihood of such an event, but what will be the forecast of artificial intelligence? The answer to this question was given by the popular chatbot ChatGPT.
On the eve of ChatGPT, they were already asked to comment on what is happening in the world of cryptocurrencies – however, in the context of a ten-year future. In general, the bot considered that the digital asset industry will become much more popular because it will
Also, artificial intelligence predicted the emergence of clearer regulation for decentralized assets, attracting large professional investors and the use of blockchain in new areas of activity. And while such expectations seem logical, they will clearly happen faster than by 2033.
What will happen to Ethereum?
Bitcoin has been the most popular cryptocurrency in the market since its inception. As of today, BTC accounts for 44.4 percent of the total digital asset industry capitalization, while the corresponding figure for Ethereum is 18.6 percent. This means that the altcoin occupies the most important place in the ecosystem of digital assets.
The share of Bitcoin and Ethereum in the total market capitalization of the cryptocurrency industry
In addition, Ethereum can be called a much more advanced project in terms of functionality. First of all, it supports the operation of smart contracts, due to which the possibilities of the blockchain are essentially limited only by the imagination of its developers.
In addition to this, the development of the Eth network continues even now. For example, in September 2022, the blockchain switched to the Proof-of-Stake consensus algorithm, due to which the network began to consume 99.9 percent less electricity.
By the way, since that day, the total supply of cryptocurrency due to the constant burning of ETH as commissions have decreased by almost a quarter of a million coins. And this is also an important point for investors who are traditionally interested in assets with limited or even deflationary supply.
They tried to estimate the probability of Ethereum coming out on the first line in the ranking of all cryptocurrencies by market capitalization using ChatGPT: for this, journalists from the CryptoPotato publication conducted a small experiment with a chatbot. Their request to the AI is translated as follows.
Do you think the price of Ethereum will be able to surpass the price of Bitcoin in the next five years?
The chatbot replied that the likelihood of this event depends on several factors. The first one is the adoption rate of both cryptocurrencies. According to ChatGPT, Ethereum’s robust ecosystem, as well as popular use cases for the network in the form of the decentralized finance industry, new smart contracts, NFTs, and more, can help it overtake Bitcoin in the required indicators.
And this is an important point. ChatGPT only has available knowledge on this topic until September 2021. Accordingly, the chatbot does not yet “know” about the transition of Ethereum to the new Proof-of-Stake consensus algorithm in September last year. In general, ChatGPT believes that this factor can also be called positive for the altcoin.
The transition to PoS has already happened and has not yet helped Ethereum much in “accelerating” its capitalization. Perhaps, it requires compliance with additional conditions voiced by artificial intelligence. For example, more favorable regulation of the industry, which is still lame – and especially in the US.
To be fair, the bot is also unaware of the launch of NFT on the Bitcoin network using the Ordinals protocol, which happened in early 2023. And now BTC is already generating several million dollars of trading volumes in this area, creating competition for Ethereum. It is possible that in the near future, the first cryptocurrency will still be able to become a leader in this race – at least not for long.
In general, ChatGPT took a more cautious stance and did not give a direct yes or no answer. This was to some extent expected, but artificial intelligence still picked up good arguments for its answer.
Of course, all of the above should not be considered investment advice, since the bot does not predict the future, but only analyzes the facts in stock. Accordingly, the further development of events may follow a completely different scenario.
We believe that sooner or later, Ethereum will indeed be able to overtake Bitcoin in terms of market capitalization. This will be facilitated by the more active development of the Eth network, whose developers in the future should introduce the long-awaited sharding and thereby increase the throughput of the blockchain.
Such improvements will allow more and more users to use the network, which will definitely have a positive impact on the prospects of a decentralized asset at its core.