3 ms·
Haha, well it seems that overlooking the ruin probability is exactly what was missing from both SBF's effective altruism 'life calculus', as well as the risk ma
by c7b 4y ago
Haha, well it seems that overlooking the ruin probability is exactly what was missing from both SBF's effective altruism 'life calculus', as well as the risk management in his fund. It appears that he really inhaled the EV thinking that he learnt at Jane Street and took it to the extreme - and the outcome was exactly what basic stochastic process theory would have predicted.
That was really insightful, thanks for sharing that anecdote! The whole story would be worthy of a Greek tragedy - rise and fall of a kid blessed with an almost supernatural gift, with just a tiny yet catastrophic flaw - the proverbial Achilles heel.
- huveja 4y ago"supernatural gift"? He's probably smart, at least that's what his MIT degree would tend to show.. but supernatural because he took advantage of the price difference in Bitcoin between Japan and the USA? .. that was just taking advantage of what he was trained for on Jane Street, nothing supernatural there .. that worship for someone who makes money speculating is what shows the decay in our society .. for me someone with a supernatural gift is Newton for example ..