Wednesday, October 26, 2016

Quick numbers

How precise is the stock market?  Assume there was some theory, rational for market moves, how accurate would you expect the market to execute the theory?  One biased estimators, bur a good guess is inflation, or what are the price variations over the monetary economy over the typical term. About 3%, is a good number.  We went through this, I can model a theory having 3% error with a six bit calculator, I know my bit error.

What does that tells us about the graph?  Most of your bets will be 'binned' across a six high, maybe five wide spanning tree, if it were viewed as a Huffman encoding tree.  But, at each of those nodes are the bets of equal significance at that level, and there is likely millions of them.

So, we see the asymmetry, that is what I am after.  But the site keeps the whole graph as nearly infinite, I guess,that is what they talk about with block chain.  Whatever the case, we want the scanner bots to jam  down the graph, fast, and collect some low precision version of the entire block chain, while being completely self protecting and mutual protecting against fake bots.  This seems to be the stumbling block in moving to the revolution.  This is all doable in a priced environment,that is key.  If its priced, then it is either locally stable around each of these nodes, or the variations are within precision.  The bots descend faster in a stable tree.  But that is the market, queuing problem, always has been, let's crack this case, move to the new tecnology

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