finbold.com
The upcoming Bitcoin halving on April 20, 2024, has ignited a surge of interest in cryptocurrency investment. This event, which cuts Bitcoin’s mining reward in half, has historically correlated with price increases. However, the cryptocurrency market remains volatile and filled with uncertainty.
With that in mind, Finbold asked the artificial intelligence (AI) of OpenAI’s flagship platform – ChatGPT, to craft a $1,000 cryptocurrency portfolio ahead of the Bitcoin halving date.
Recognizing the inherent volatility of the market, the portfolio prioritizes diversification.
“This portfolio aims to balance between established coins with proven track records and emerging coins with potential for significant growth, always keeping diversification in mind to manage risk.”
ChatGPT justification of its $1,000 crypto portfolio
Bitcoin (BTC), poised to benefit from the anticipated post-halving price increase, led the portfolio with 40% ($400).
Securing the number two spot with a 30% ($300) allocation, Ethereum (ETH)’s unwavering development in smart contracts solidified its position.
Despite higher gas fees compared to competitors, Ethereum’s network upgrades and the broad ecosystem of dApps “keep it as a cornerstone of any crypto portfolio,” says the AI.
Venturing beyond established giants, the portfolio incorporated Binance Coin (BNB) at 10% ($100). The Binance exchange’s native token, BNB’s utility for transactions and its deflationary buy-back program made it an attractive proposition.
Solana (SOL) also secured a 10% ($100) allocation. Renowned for its speed and low costs, Solana presented a promising alternative for decentralized applications. ChatGPT also mentioned the value of the DeFi ecosystem. Rounding out the portfolio were Chainlink (LINK) and Polkadot (DOT), each receiving 5% ($50) allocations.
YTD growth and portfolio similarities
Interestingly, a closer look reveals that all six of the chosen cryptocurrencies selected for this portfolio have experienced positive year-to-date (YTD) growth as of April 11.
A comparison with a similar $100 cryptocurrency portfolio created by Google Bard (forerunner of Google Gemini) last year reveals interesting similarities.
Both portfolios include Bitcoin, Ethereum, and Solana, though with differing allocation percentages. This overlap suggests potential long-term value in these specific cryptocurrencies.
Additionally, this year’s data indicates that Google’s $100 portfolio has grown by over 190% YTD, which translates to a hypothetical value of approximately $292.
“This portfolio is designed with a long-term perspective, considering the upcoming Bitcoin halving, the intrinsic value of Ethereum, and the potential growth of altcoins.”
In conclusion, this $1,000 cryptocurrency portfolio prioritized a long-term outlook as ChatGPT recommended.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.