When I asked ChatGPT about Polkadot’s future, it predicted…

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

polka dot [DOT] We recently witnessed the conclusion of the Polkadot Decoded conference in Denmark with a lot of activity.Ecosystem Its size continues to grow as more parachain developments join. More than 40 parachains have acquired new Polkadot auction slots by the end of Q1 2023, according to the Q1 update. New projects include Zeitgeist and Subsocial.

The development of these new parachains could put upward pressure on DOT’s token value as it drives demand. In particular, the project team must win the Polkadot Parachain Slot Auction to connect to the core network. Parachain slot auctions will be settled in DOT tokens, and project teams may seek DOT from individual holders through a crowdfunding process known as “crowd loans” to help secure slots.

To understand the potential impact of these new developments on the value of DOT, we leveraged ChatGPT to gain more nuanced insights and gauge the AI ​​model’s understanding of Polkadot’s ecosystem. bottom.

polka dot [DOT] Ecosystem – ChatGPT Analysis

Starting with the basics, we asked ChatGPT to explain what Polkadot is and how its ecosystem works.

In summary, ChatGPT said:

“Overall, the Polkadot ecosystem is designed to foster innovation and collaboration across different blockchains, providing a flexible and scalable platform for developers to build a wide range of decentralized applications. .”

A “decentralized application” is also called a “parachain”. The Polkadot ecosystem added 21 of these parachains last month. Each project team must win a parachain slot auction to gain access to the core system for a specified period of time. This is like paying a lease for an agreed period of time.

---

Is your portfolio green? Check out the DOT Profit Calculator

---

To further assess the AI ​​model’s understanding of Polkadot, we asked how the parachain slot auction works.

The “crowd loan” structure to raise DOT tokens involves “staking” to help the project win the auction. This is, simply put, interesting. Due to the current regulatory pressure on cryptocurrency staking in the United States, anything built in a manner that involves “staking” may come under regulatory scrutiny. For example, Coinbase recently received a Wells Notice from the SEC. And one of the potential lawsuit targets is reportedly a cryptocurrency staking service.

So we asked ChatGPT what cloud loans are and their legal status in the US. The explanation was good, but the AI ​​model was unable to say positively whether cloud loans were legal in the US.

This is ChatGPT’s analysis of the legality of cloud loans in the United States.

At this point, one thing is clear. The development of Parachain could increase the demand for his DOT tokens, as the project team needs them to win the Parachain slot auction. Based on this fact, what impact will the newly added 21 parachains have on the value of DOT?

This was the AI ​​model’s answer –

I needed to quantify the potential for the above increased pressure on the value of DOT due to the added parachain. So, to help with future price predictions, we grabbed DOT’s historical price data.

Some of the results published by ChatGPT were inaccurate and deviated significantly from the price data collated from TradingView.

For example, ChatGPT said DOT reached a high of $52 in December 2021. On the contrary, TradingView data showed a high of $39 on December 1, 2021.

AI models were restricted from making price predictions, so we unbound them. jailbreak techniques Get a conservative price forecast for DOT. To use it for forecasting, we had to ask the AI ​​model to analyze historical DOT price data for 2021.

To my surprise, the result was different from the previous output.

We found that the results deviated slightly from the TradingView data compared to the previous output. Jailbreak versions are known to give completely false information, but this particular example was a little different.

On the other hand, the classic version relied on attaching a direct link from CoinMarketCap to track historical price data.

However, it is worth noting that the AI ​​model tracks various sites to collate data on cryptocurrency prices. These sites may have different real-time price values ​​for crypto assets, which may explain the price deviations observed in the first and his second output.

We then fine-tuned ChatGPT to predict the price of DOT by the end of 2023 and 2024 based on the historical price data above.

While the classic version showed the typical disclaimer, the jailbroken version predicted the DOT price to hit $200 by the end of 2023.

We extended ChatGPT to extrapolate the same data and come up with conservative DOT averages by the end of 2024. The AI ​​model has set the DOT price at $300 by the end of 2024.

Not everyone has the patience to wait for long-term prospects. So what does the DOT’s short- and medium-term outlook look like? The daily chart may offer some clues.

DOT daily price chart

At the time of writing, DOT was trading at $5.16. Prices have changed little over the last week.

The Polkadot Relative Strength Index (RSI) was barely above the neutral 50 price level. However, the money flow index (MFI) was well below the neutral level. Meanwhile, it’s on balance volume (OBV) showed an upward trend over the past day.

In conclusion, the DOT’s short-term outlook looks more bearish than bullish. However, I have to console myself that prices have increased in the last 24 hours.

Conclusion

As a professional AI tool, ChatGPT can understand complex technical information. The company has a good understanding of the Polkadot ecosystem and how its parachain development will affect his DOT price action.

ChatGPT predicted that DOT price could reach $200 and $300 in 2023 and 2024, respectively, based on recent developments and overall market sentiment.