About 15 years ago, Papa John’s Pizza accepted 10,000 Bitcoin as payment for two pizzas. Fast forward to today, financial analysts are discussing the possibility of central banks holding the revolutionary digital token – which has a market capitalization of $2.2 trillion, according to Forbes. According to analysts at Deutsche Bank, as reported by Yahoo Finance, by 2030, central banks could hold both Bitcoin and gold simultaneously on their balance sheets.
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The wild increase in the price of Bitcoin is nothing short of a miracle. Its utility as a store of value, digital payment method, and limited supply has solidified its position as an alternative investment asset. Still, it would be wise to check whether it is too little or too late to join the highly coveted crypto, as it reached an all-time record high of $124,500 in mid-August.
To find out, I asked ChatGPT to provide a practical roadmap on how to get rich from Bitcoin. However, artificial intelligence (AI) is a relatively new technology and is not infallible. So, GOBankingRates asked an expert to express their perspective and see if they agree (or disagree) with ChatGPT’s answer. Find out what an expert said in response to ChatGPT’s tips below.
No shortcuts, just strategy
Before offering any strategies, the AI chatbot didn’t say anything about the dangers of “get rich” strategies. “There is no guaranteed, ethical shortcut to getting rich from Bitcoin – it’s possible, but it’s risky,” while noting that a one-size-fits-all approach also doesn’t work. Instead, a practical strategy depends on personal goals and risking as much as you can afford to lose.
Furthermore, rather than offer its own advice, ChatGPT suggested deferring to “the recommendation of many professionals”, explaining that conservative investors typically allocate only 1 to 5% of their portfolios, while those seeking a more aggressive growth approach allocate around 4 to 10%.
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patience and discipline
Sounding more like an intelligent advisor than a generic AI tool, ChatGPT suggested a disciplined approach in the form of dollar-cost averaging (DCA) to gradually increase your exposure to Bitcoin, warning against “gambling your life” given the digital asset’s volatile history.
An expert weighs in on ChatGPT’s Bitcoin advice
Ben Waterman, co-founder of global consumer portfolio tracking platform Strabo, advised a sensible approach for investors looking to invest in Bitcoin. He said the days of experiencing 100 or 1,000x returns are “very unlikely,” but added that “it has become abundantly clear that Bitcoin is not going anywhere and can now be treated as an alternative asset.”
As far as becoming rich is concerned? Tread carefully.
Waterman said that most of the success stories of people who became rich stemmed from personal experiences and survivorship bias. However, allocating only a small portion of your portfolio and dollar-cost averaging over time can help you enter at an attractive price. “Never buy or sell based on short-term volatile fluctuations,” Waterman said.
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This article originally appeared on GOBankingRates.com: I asked ChatGPT how to get rich from Bitcoin – here’s what an expert thought about the answer
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