Monday, July 14, 2014

Social network with no members gets $6bn valuation (Wired UK)

Another take on the CYNK roller coaster and its potential implications

"As we all know from both social media and the stock market, however, humans are stubbornly prone to cognitive biases and emotion-driven rationalisations that lead to bad choices, like buying shares of Cynk. The advantage of using computers as an aid to decision-making is their ability not to hear any of that noise -- noise that introducing social media and other unstructured data as new variables into, say, high-frequency trading systems could cause to increase. Paradoxically, the more Wall Street's machines become like humans, the more prone they may be to making the same kinds of mistakes humans do. The next tech bubble might not be driven by human stupidity or greed; it might be created by the tech itself."
Social network with no members gets $6bn valuation (Wired UK)
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