What Happens When You Treat ChatGPT Like a Human
Don't use ChatGPT like a search engine, it's not how it works
AI will probably most likely lead to the end of the world, but in the meantime, there'll be great companies.
Sam Altman, CEO of OpenAI (parent company of ChatGPT)
In a departure from my recent newsletters of banking failures and financial foibles, today's newsletter takes a detour back into the world of artificial intelligence. It seems that despite the buzz surrounding AI, many people are still missing the point, and I felt compelled to go back to writing about ChatGPT.
A few weeks ago, I found myself pondering the merits of upgrading to the GPT-4 version. Skepticism gnawed at me, as I questioned whether $20 per month could really make such a difference with the free version of ChatGPT (based on GPT-3). However, as I took the plunge, I found myself immersed in an entirely new world, one where my productivity skyrocketed to heights previously unimaginable. The impact wasn't merely a marginal bump in efficiency; it was a transformative experience that upended everything I thought I knew about the power of artificial intelligence. I had never experienced anything even closer to this. The last time I experienced such profound awe for a new technology was nearly a decade ago, when I first grasped the groundbreaking implications of blockchain.
But, there was a challenge to overcome. To harness the full potential of ChatGPT, I needed to learn how to communicate with it effectively. You see, ChatGPT is not like a “dumb” search engine that just returns links (yes, Google, I’m looking at you). It has been trained on all human knowledge, which imbues it with a human-like understanding of language and context. So I realized that to truly unlock its capabilities, I had to treat it like a human, providing context, defining roles, and specifying the target audience for each task. Treating it like a human was a game-changer. That’s when it clicked for me. You have to consider each interaction with ChatGPT as a form of roleplay (strictly non-sexual, of course) to better grasp its capabilities.
You can learn how to use ChatGPT by yourself, or you can use great threads of people who have been experimenting with it, like the one below:
The following thread also includes great prompt techniques:
As I began to treat ChatGPT like a highly knowledgeable intern, the floodgates of possibility opened wide. Suddenly, my AI intern was tackling tasks with a level of expertise that would make even the most seasoned professional envious.
Observe how, for example, not only lawyers but anyone can already harness the power of ChatGPT to navigate legal matters:
In a rapidly evolving world, embracing AI is no longer a luxury; it's a necessity. Not everyone will lose their jobs to AI. But white-collar workers who don’t use AI will be replaced by other white-collar workers who use AI. This is a certainty.
In the thread below, Jason Calacanis summarizes better than I could what it means for your job. Spoiler alert: If you are mediocre at your job, you’re in trouble!
To remain competitive, we must adapt and learn to harness the power of AI.
But the chat interface of ChatGPT is just the beginning. The introduction of plugins will unleash new functionalities we can’t even think of, reminiscent of the iPhone's app revolution. Think of what you could do with your smartphone without apps. Not much, right? It’s ChatGPT right now.
To catch a glimpse of the future, take a look at this video of how ChatGPT and plugins work:
Before we move on to generative AI, here is one last thread with great prompts to get more stuff done:
In the realm of AI, no industry or domain is off-limits. Even songs! AI-generated music, like this Drake song, blurs the line between human and machine creativity:
If you didn’t know AI generated this, would you have figured it out?
Also, isn’t it annoying when you have a great picture of yourself that you would like to use on LinkedIn but can’t because you were not wearing professional attire? Casual photos can now be transformed into professional masterpieces with the help of AI.
And now, for the coup de grâce: this very newsletter, dear reader, was crafted by GPT-4 itself! Some of you may have suspected it, and some may have even recognized the style of the author I used to prepare it (he is my favorite author). If you want to see how I did it, you can find my exchanges with GPT-4 by clicking on this link. You will see that it took a few exchanges with ChatGPT to refine the tone and get to the result I wanted. Enjoy!
For those eager to learn more about AI, these eye-opening podcast episodes delve into its risks and opportunities. I enjoyed them a lot.
Lex Fridman Podcast | #368 – Eliezer Yudkowsky: Dangers of AI and the End of Human Civilization
Lex Fridman Podcast | #371 – Max Tegmark: The Case for Halting AI Development
The Grant Williams Podcast | The Narrative Game Ep. 9: Dollars, Indictments & ChatGPT
The Pivot, by Anthony Molle
Welcome to "The Pivot," a new section of Vincent’s Corner. Join Anthony Molle, my colleague and friend, as he uncovers insights and trends shaping our financial world, from crypto and AI to macroeconomics and beyond.
Ethereum: The New Frontier of Digital Opportunities and the Birth of a Web-Based Risk-Free Rate
Imagine a digital sovereign state where the monetary and fiscal policies are governed by code, and transparency reigns supreme. Welcome to Ethereum, a decentralized, open-source blockchain platform that has evolved from its wild west beginnings to a land of opportunity. With its recent Shapella upgrade completing its transition to a proof-of-stake (PoS) consensus mechanism, Ethereum is now akin to a digital nation that provides a secure base layer for innovation, much like the United States did during its early years.
Ethereum's native cryptocurrency, Ether (ETH), is the lifeblood of this digital economy. In our analogy, if Bitcoin (BTC) is digital gold, then Ethereum is the digital infrastructure that powers a vibrant and ever-evolving ecosystem of decentralized applications (dApps) and projects. Ethereum supports various use cases, including decentralized finance (DeFi), asset tokenization (NFTs), and decentralized autonomous organizations (DAOs), attracting developers and users from around the globe.
The PoS consensus algorithm, combined with Ethereum Improvement Proposal 1559 (EIP-1559), has created a robust monetary and fiscal system for Ethereum. Validators, who propose and validate new blocks based on their staked ETH, maintain network security and integrity. These validators are like the citizens of our digital nation, who actively contribute to its growth and stability. In return, they receive newly minted tokens and transaction fees, providing consistent returns on investment (currently c. 4.9% APR). The Ethereum Foundation provides more technical information at https://ethereum.org/en/staking/.
Ethereum's monetary policy is comparable to the Federal Reserve's role in managing the money supply. However, instead of relying on human decision-making, Ethereum's monetary policy is governed by code, ensuring a predictable and algorithmic approach to money supply management. With the implementation of EIP-1559, a deflationary aspect has been introduced to ETH's tokenomics, potentially increasing its value over time.
In the world of traditional finance, the risk-free rate represents the return on the safest possible investment, typically associated with government bonds. Ethereum's PoS model and EIP-1559 make the notion of a risk-free rate for the digital economy increasingly plausible. Validators who stake their ETH receive a predictable and stable return on investment, often referred to as the staking yield. This yield is not dependent on the performance of individual dApps or projects within the Ethereum ecosystem, making it an attractive investment option for those seeking a stable return in the digital economy. Estimations of returns can be made using calculators like the one found at https://beaconcha.in/calculator.
Staking ETH is akin to investing in a sovereign bond issued by a digital treasury. Validators who stake their tokens receive rewards, creating a long-term, stable income source comparable to the interest payments of a bond. However, it is important to note that ETH is not a security, and the active participation required for staking sets it apart from passive income typically associated with bond investments.
The Ethereum network's activity serves as the digital nation's transparent GDP. Validators, developers, and users can track the growth and progress of the ecosystem in real-time, fostering trust and participation from all parties. This transparency is a unique advantage of Ethereum over traditional financial systems, where information is often opaque and difficult to access. Dune Analytics is a valuable resource providing insightful data on Ethereum staking and other crypto assets.
As Ethereum matures and gains mainstream adoption, its scalability is expected to be addressed through the adoption of rollups, off-chain scaling solutions that bundle multiple transactions into a single on-chain transaction. These rollups will improve the network’s capacity, efficiency, and speed, making Ethereum an even more attractive platform for developers and users alike.
With its strong tokenomics, growing scalability, and PoS consensus mechanism, Ethereum is poised to remain a dominant player in the blockchain space, further solidifying the role of ETH as a stable, long-term investment with the potential for consistent returns. As the digital nation of Ethereum flourishes, new use cases and applications will emerge, driving demand for ETH and potentially increasing its value over time.
Disclaimer: The views and opinions expressed in this article are solely those of the author and should not be interpreted as legal or financial advice. Investments always carry risks, and this is particularly true for crypto assets, which can be highly volatile and subject to regulatory changes. Before making any investment decisions, it is crucial to consult with a professional financial advisor and conduct thorough research. Please note that the author holds positions in certain crypto assets, including ETH. The information provided in this article should not be construed as an endorsement of any particular investment or asset.