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People wonder where money comes from, in KtN.
To my way of thinking, it may be understood as follows.
Kruijs, in his great wisdom, like an independent country, simply prints it, and awards it for various things... good deeds, getting new members, betting on questions correctly, etc...
Now, money is like sunshine falling on the grass; it contains energy. The grass accrues it, and some animals may eat the grass, gathering some energy in. Animals higher up on the food chain (predators) may eat these animals (prey), thereby gathering more condensed energy.. Thus, one may visualize the $KtN as an energy tree like structure.. Just as knowledge flows up (as the German physicist Boltzmann figured out long ago, in terms of entropy and temperature) in terms of logarithms, so too, this money is similarly related, and the more one affects the probabilities, the more the "knowledge" one adds to the choices..It is for this reason that low probability events can yield the greatest gains, because one is adding the most knowledge (if you buy it).
Say you buy a 1% probability event, and everyone else buys the other event (therefore 99%), now you are saying that you are 100x as knowledgeable as the average person on this platform (an unlikely event). Still THAT should be rewarded, if you are right, and it is!! But, if you go along with the herd, and bet the standard odds when they were only 98%, and increase it to 99%, then that adds little knowledge, and you do not gain much, but lose all your money for adding very , very little knowledge!
Thus a little mathematics and a little statistics, and it is all clear... thanks to Messieur Boltzmann, and his predecessor, Messieur Maxwell (who also was no slouch)..
To my way of thinking, it may be understood as follows.
Kruijs, in his great wisdom, like an independent country, simply prints it, and awards it for various things... good deeds, getting new members, betting on questions correctly, etc...
Now, money is like sunshine falling on the grass; it contains energy. The grass accrues it, and some animals may eat the grass, gathering some energy in. Animals higher up on the food chain (predators) may eat these animals (prey), thereby gathering more condensed energy.. Thus, one may visualize the $KtN as an energy tree like structure.. Just as knowledge flows up (as the German physicist Boltzmann figured out long ago, in terms of entropy and temperature) in terms of logarithms, so too, this money is similarly related, and the more one affects the probabilities, the more the "knowledge" one adds to the choices..It is for this reason that low probability events can yield the greatest gains, because one is adding the most knowledge (if you buy it).
Say you buy a 1% probability event, and everyone else buys the other event (therefore 99%), now you are saying that you are 100x as knowledgeable as the average person on this platform (an unlikely event). Still THAT should be rewarded, if you are right, and it is!! But, if you go along with the herd, and bet the standard odds when they were only 98%, and increase it to 99%, then that adds little knowledge, and you do not gain much, but lose all your money for adding very , very little knowledge!
Thus a little mathematics and a little statistics, and it is all clear... thanks to Messieur Boltzmann, and his predecessor, Messieur Maxwell (who also was no slouch)..
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