 My name is Giovanni and for the last couple of weeks I have been competing against AI in an investment game. The rules of the game were simple. The AI and I had $100 each to invest in crypto and 2 weeks to make as much money as possible. The results of this experiment were mind-blowing. Before we get into it, make sure you like the video and subscribe to our channel. Before starting the challenge, I wanted to know more about my adversaries' investment skills. I reached out to my colleague Felix at Cointelegraph. He asked ChatGPT to build a strong crypto portfolio a couple of months ago. From the time we did it in March to now, we started at $100 and we're at $104 right now, so we made a 4% gain in that time. 4% gains in about 3 months. This sounded like rookie numbers to me. I was sure I could do much better than that. First of all, I had to give ChatGPT the right instructions to build its crypto portfolio. As you might know, ChatGPT knows nothing about events happening beyond 2021, so I had to fill it in. Basically, I asked the AI to process a summary of the main events in crypto in 2022 and 2023. Here is what I got as a result. BTC 40%, either 25%, XRP 20%, ADA 10%, and USDT 5%. As you can see, this is a quite conservative portfolio. That reflected the high degree of uncertainty dominating the crypto market in the last few months. Okay, it was my turn to pick my crypto bets. In real life, I am a quite conservative crypto investor and I just own Bitcoin for the long term. But this time, the goal was making as much money as possible, so a different strategy was needed. That's why I reached out to a good friend of mine, market analyst Marcel Pejman. In the competition, you should be more aggressive, so I would not focus too much on Bitcoin and Ethereum as the GPT did. The market goes up, you're definitely going to win the game. If the market goes down, I look for you. By then, I understood that the AI's main disadvantage is that it bases its decisions on already established price trends. It isn't really capable of anticipating new trends. Basically, it buys stuff that is already going up. So, the key to beating it is betting on cryptocurrencies that have been going down and now have the best chances to bounce back. When others are crying when there's blood on the streets, which sector was hit the most over the past few weeks, couple of months? The DeFi sector because of the curve, hack, and whatever happened there. So, here is the portfolio IP. Curve down 30%, half 20%, avalanche 20%, uniswap 10%. All these DeFi-related tokens were heavily impacted by the curve-finance hack, so a lot of potential in there. And finally, BNB 20%. Why BNB? Well, because the Binance-native token had been under pressure after the SEC sued the crypto exchange, so I thought it could also have a good chance to outperform. I'm rooting for you, I'm cheering for you, I think you definitely have a good chance. Thanks Marcel. So, the game was on. If you think that the AI will win this challenge, subscribe to the channel and leave a like if you are rooting for me. So, here we are with the first top dates on our challenge, after roughly three days. The market has not been doing great in the last couple of days, and chat GPT is in slight advantage. Our portfolios are both down, but I'm down more. I'm down 1.12% while the AI is down 0.26%. The AI's best performer is Tether, a stable coin. So, Marcel was actually right. When the market is not doing well, the AI's more conservative portfolio comes out ahead. But this is just the beginning of the challenge, so I'm still optimistic. Despite my optimism, I got quite unlucky. On August 17, Bitcoin crashed by 8% in minutes, bringing down the entire market. Okay, guys. This is another update from day 6. The situation is getting tougher. The market hasn't recovered. It is actually going down even further, and the gap between me and the AI is widening. In the morning, when I checked my account, it was down by 8 dollars, while the AI's account was down just 3.7 dollars. So, what seems to be dragging me down is the curved out token. It seems that this protocol hasn't really recovered from last month's hack, while what keeps the AI afloat is still mainly Tether, the stable coin. So, we are pretty much half a way through the challenge. Perhaps this is a good time to talk again to Marcel and see if we need to change a little bit our strategy. Yes, it was awful. Yes, it lost 30% of the price. Yes, the investor is still getting panicked, but I think that the worst is behind us. And I think our investment decision was sound. It still seems sound. I wouldn't change the portfolio right now. Marcel thinks I should be disciplined and stick to what I have until two days are left, then switch to even risk your crypto. Two or three days? If we're still losing, I'll shift the strategy to smaller outcoins below a billion dollar market cap simply because they have higher beta, meaning if the market moves up 10%, odds are those coins can pump 40%, 50%, so increasing our odds. Okay, I guess this is a game for very strong hands. Okay guys, there are just two days left until the end of the challenge. In the last 24 hours, my portfolio regained about one dollar over the AI, which is not bad, but unfortunately that's not enough. The gap between us is still about five dollars. And to be honest, I don't see the market recovering in the next two days. I don't know why Marcel is so optimistic and yeah, I just don't see it happening. So I took a decision. I think I will go against Marcel's advice. I will actually put all my assets into stablecoin because I feel that the market will continue crashing. In that case, my portfolio would have last chance to come out ahead. So let's see, this is my last chance. So here we are. The two week challenge is over, but before we announce the results, I wanted to talk to veteran trader Alessio Rastani, who analyzed my thought process during the challenge. The question you have to ask yourself is, did you have a plan, maybe a written down plan, that you're going to follow regardless of what may happen? From what you said to me is that you close the positions down because you began to question your own thinking, you question your own rules and your objectives. And I think an AI probably wouldn't have done that. It's not really your fault, Giovanni, because we're human beings. We have emotions, and these get in the way. Okay, so does that mean that emotions are always playing against us when we invest? We do need some emotion to be able to make decisions. The question is, can you use those emotions in the right way to follow your rules? Maybe do the opposite of your emotions in that case. By all means, listen to your thoughts and emotions. Ask yourself, why do you think this way? Is it fear that's driving your decision? And if so, maybe you should curb that fear and do the opposite of what you're thinking. Right, so do not ignore emotions, but learn how to interpret them and act according to the plan. That sounds like a solid piece of advice. And so here are the results. The AI is the winner. I ended up with $83.7, while the AI's portfolio is worth $88.43. Unfortunately, the market has remained rather stable in the last couple of days, so my last minute change didn't work. I didn't have my head clear. I felt very negative, very pessimistic. It's pretty normal for novice and even intermediate traders. It's never a good strategy, we discussed that in the last video, to rethink your strategy in the middle of the way. Another problem was the short timeframe we picked for the challenge. I bet that the market would invert its trend, which is less likely to happen in a short period. Just a few days after the end of the challenge, the crypto market rallied on the news that Grace Kale won a legal battle against the SEC over its Bitcoin ETF application, which means if the challenge lasted even a little longer, it could have ended very differently. That's so annoying. If you play short-term frames, one week, two weeks, three weeks, the odds are stacked against you, because the machine will play according to what it's seen over the past few days, and the market tends to continue doing what has been doing over the past few days. The human is much better on longer-term frames. We're talking about two months to six months at least. So here are the key takeaways from the challenge. First, you cannot get rich in two weeks, especially in a bearish environment and in a short timeframe. The AI's conservative portfolio worked better in this environment. It played it safe, and it won. So next time, either choose a different strategy or set a longer timeframe. Second, what made the difference was Bitcoin's abrupt crash on August 17. That hit my portfolio much harder than the AI's. Third, my approach was basically a gamble. If the market moved up, I would have won, but I was unlucky, so I lost. Only humans would take a gamble like this. And finally, my last minute change strategy was not successful. I fell victim of a panic-cell moment, which is a human weakness. The AI is obviously immune from these psychological factors. Getting rid of emotions is impossible, but understanding them and not let them guide our actions, that was the main lesson to be learned here. Anyway, this was just the first round. I will re-challenge the AI, and this time, I won't repeat the same mistakes. So stay tuned for our next video update. I'm Giovanni, your host. Thank you for watching, and see you soon.