While we all have our opinions about the cryptocurrency sector, I thought it’d be an interesting diversion to ask an artificial intelligence platform ideas for cryptos to make you rich. Arbitrarily, I assigned a timeline of five years, which should be plenty for any bullish narrative to pan out. Also, I specifically asked ChatGPT to avoid mentioning Bitcoin (BTC-USD) or Ethereum (ETH-USD).
I love these coins but let’s face it: everybody will mention that these are the cryptos to make you rich. Instead, I wanted something a bit more creative. Below is what the popular generative AI platform told me:
Keep in mind that investing in cryptocurrencies involves risks, and it’s essential to conduct thorough research and consult with financial professionals before making any investment decisions. That being said, here are three lesser-known cryptocurrencies that have shown promise, but their success is subject to market dynamics and various factors.
We’re going to dive in, beginning with what ChatGPT states and following that, my analysis. Without further delay, below are cryptos to make you rich according to the machines.
Chainlink (LINK-USD)
ChatGPT describes Chainlink (LINK-USD) as a “decentralized oracle network that aims to connect smart contracts with real-world data. It enables smart contracts on Ethereum to securely connect to external data sources, APIs, and payment systems. This functionality is crucial for the development of decentralized applications (DApps) and the broader adoption of blockchain technology.”
Coincidentally, I happen to own Chainlink, having reentered the space after trading it during the 2021 heyday. Recently, LINK has represented one of the more exciting cryptos, gaining 26% over the trailing week from the wee hours of Feb 6. As of this writing, it has easily outperformed many other candidates for cryptos to make you rich during the aforementioned time period.
Mathematically, LINK is a fascinating crypto. In 2018, the maximum upside (on a week-over-week basis) performance was 111.2% while the biggest downside move was -50.51%. However, in 2021 and 2022, the magnitude of the worst losses for these years exceeded the magnitude of the biggest upside. Then, this narrative flipped last year.
That communicates to me that the weak hands may have been shaken out, which could be a huge positive development.
Polkadot (DOT-USD)
According to ChatGPT, Polkadot (DOT-USD) is a “multi-chain blockchain platform that enables different blockchains to transfer messages and value in a trust-free fashion; it aims to provide a way for different blockchains to interoperate. Founded by Dr. Gavin Wood, one of the co-founders of Ethereum, Polkadot seeks to overcome scalability and interoperability issues in the blockchain space.”
Although DOT has been an enticingly speculative opportunity over the past several months, it hasn’t performed well recently. In the past seven days, DOT slipped about 4%. Over the trailing 24 hours from early Tuesday morning, Polkadot gave up about 2% of market value. Still, red ink in the virtual currency space tends to draw out the contrarians.
Mathematically, Polkadot enjoyed a tremendous rally in 2020. At the peak week-over-week performance, DOT rang up 95.34%. Comparatively, the worst low was acceptable at “only” 18.24% down. Further, during this cycle, the average weekly performance gain for DOT stakeholders was 7.21%. Though circumstances got ugly in 2022, the bulls regained control last year. Moving forward, this could be an intriguing period for Polkadot. Thus, it’s one of the cryptos to make you rich.
Cardano (ADA-USD)
Per ChatGPT, Cardano (ADA-USD) is a “blockchain platform that aims to provide a more secure and scalable infrastructure for the development of decentralized applications and smart contracts. It is known for its scientific and peer-reviewed approach to development, focusing on academic research and transparency. Cardano’s ADA token is used to facilitate transactions and participate in the platform’s governance.”
While Cardano has seen a resurgence in the blockchain market in the past few months, it encountered resistance recently. Over the past one-week period, ADA slipped more than 7%. In the past 24 hours from early Tuesday morning, the popular altcoin gave up a bit over 1% of value. Still, that’s not going to discourage the hardcore advocates.
Mathematically, this is another fascinating candidate for cryptos to make you rich. In 2017, its biggest weekly upside performance clocked in at 365.19%. And while its stratospheric performance has comparatively faded, its biggest annual upswing has always been larger than the magnitude of downside (on a percentage-point basis). That communicates to me that Cardano enjoys high-conviction sentiment among the bulls, something I admit I failed to see before.
Stated differently, it could be worth buying the dips.
On the date of publication, Josh Enomoto held a LONG position in BTC, ETH and LINK. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
