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The money is generally coming from value generation or value extraction (or rent-seeking). You can create societal incentives to encourage generation and disco
by siliconc0w 1y ago
The money is generally coming from value generation or value extraction (or rent-seeking). You can create societal incentives to encourage generation and discourage extraction. A patent-troll firm is maybe 90% parasitic to 10% productive. SpaceX is probably closer to the opposite (IMO). People are going to play the game to win but its up to society to decide what that means.
- srean 1y ago> The money is generally coming from value generation or value extraction. This is the crux of the matter, a critical assumption. It breaks at many places. One can make a boat load of money by predicting market movements slightly better. The value produced is not zero, but does not seem proportionate. The size of the HFT market seems disproportionate to the value they purportedly produce by removing microsecond scale inefficiencies in the market. A bulk of the futures and options market is not from hedging but just gambling, it's not creating value, at least not in any proportionate sense.
- immibis 1y agoThis is vacuous as a followup to the original claim - which was that they're provably good at allocating resources to create value (the last part being implied). "The system is good because it selects the ones who can create value" "No actually they don't create value" "Well, at least we know they're either creating value or destroying it" you see how that doesn't support the original claim at all