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But it allows them to do it at scale, which may or may not reveal itself a good bet. The good thing about their approach is that their scale is only limited by
by fataliss 9y ago
But it allows them to do it at scale, which may or may not reveal itself a good bet. The good thing about their approach is that their scale is only limited by the amount of capital they have to invest. Say out of a 1000 investment based on their metrics, they average a 5% return. Then their model allows them to scale to make it potentially very profitable. Now of course that's assuming that with a larger scale they'd come out positive at all. If not, they'll soon waste all their capital and this will be the end of it :P
- cdoxsey 9y agoIt also allows a clever "entrepreneur" to game the system. In 6 months you'll be reading about it here on Hacker News: "How we lost millions due to an algorithmic oversight"