I Asked ChatGPT4 and Gemini to Create Their Own Crypto Portfolios!
Which LLMs is better at creating investment portfolios?
- OpenAI’s ChatGPT4
- Google’s Gemini
Which option would you go for?
I’ve been willing to start an experiment to answer this question, for a while now. It took Bitcoin reaching a new all-time-high to give me the final push.
I’ve finally found time and motivation to ask ChatGPT4 and Gemini to draw their own cryptocurrency portfolios, in a scenario where they had $10,000 to invest today.
The results are quite different and interesting. My prompt for both was:
You’re a financial advisor with expertise in the cryptocurrency market. Draw a cryptocurrency portfolio out of $10,000
Risk appetite: medium
Expected investment duration: 1 year (from March 6th 2024, till March 6th 2025)
Let’s see the answers…
ChatGPT4's Portfolio
ChatGPT designed a very diversified portfolio, with 7 different tokens on the list. All these tokens belong to the top 10 coins (excluding stablecoins), with the exception of one.
Approximate worth on 6th March 2024: $10,000
The setup is quite conservative, but there is also a leap into something alternative, with a strong real-world use case: LINK. ChainLink works to provide oracles to any blockchain that needs to work with real-world data, think about prediction markets for example. The data must be reputable, reliable and needs to be broadcast to the blockchain at the right time to work.
Here is ChatGPT’s investment thesis:
- Diversification: This portfolio is diversified across major cryptocurrencies with established use cases and emerging ones with growth potential.
- Risk Management: By allocating more to established cryptocurrencies (BTC and ETH), we’re managing risk while still allowing for growth through investments in emerging coins.
- Adjustments: Given the volatility of the crypto market, it’s crucial to review and potentially adjust the portfolio periodically. Keep an eye on market trends, project developments, and global economic factors that could impact the crypto space.
Adjustments is something that at SwissBorg we’ve been working for over 2 years, until we were able to bake Thematics, an automated portfolio that adjusts itself in order to always maintain the optimal balance. If you reside in Europe, or even Canada, Singapore, Japan, or Hong Kong, download the SwissBorg app to try Thematics out. No US people for now. Sorry, complain with the folks in Washington…
Gemini’s Portfolio
Gemini opted for a simpler, few-but-good approach. Just put most on BTC, and then try to speculate a bit on DOT and ATOM.
Speculators seem quite fond of ATOM and I wouldn’t be surprised to see a good 5x on this token, when Altseason will kick in.
Approximate worth on 6th March 2024: $10,000
Let’s see the rationale behind Gemini’s decision…
- Bitcoin (BTC): The most established cryptocurrency with a large market cap and strong brand recognition. While it can be volatile, it also offers the potential for significant growth over the long term.
- Ethereum (ETH): The second-largest cryptocurrency by market cap, with a strong development team and a growing ecosystem of decentralized applications (dApps).
- Polkadot (DOT) and Cosmos (ATOM): Both are interoperability protocols that aim to connect different blockchains, which could be a major growth area in the future. They represent smaller allocations due to their higher risk compared to established players like Bitcoin and Ethereum.
Gemini’s rationale is worth of Captain Obvious, but this confirms one important thing about “AI”: machines can crunch data, but they cannot think. Thinking machines are just an illusion, don’t forget that.
And indeed, both models remind how it’s important to DYOR, invest only what you can lose, and consider seeking the advice of a professional (human) financial advisor before rushing into any kind of investment, including crypto.
If you like this experiment, I can provide monthly, or even weekly, updates on how the two virtual portfolios are performing. It’s going to be fun watching two LMMs competing with each other on the crypto market!
