Learning Intelligence
Learning Intelligence
3.25 | "Fear is the main source of superstition, and one of the main sources of cruelty. To conquer fear is the beginning of wisdom." ― Bertrand Russel
News and Numbers
Markets this Week:
S&P 500 is down 3%.
NASDAQ 100 is down 4%
Bitcoin-USD is up 5%
Ethereum-USD is up 2%
Headlines from this Week:
Meta's Instagram linked to depression, anxiety, insomnia in kids - US states' lawsuit.
23andMe notifies customers of data breach into its 'DNA Relatives' feature.
White House to unveil AI executive order on Monday.
Sam Bankman-Fried testifies he did not defraud anyone.
Finance
By Vlad Estoup, B.Comm. (Finance); working in Ethereum cybersecurity
Bitcoin: The World’s Most Disciplined Central Bank
In the realm of traditional finance, central banks have long been the custodians of a nation's monetary policy and the stewards of its economic stability. These institutions are tasked with the critical responsibility of controlling the money supply, regulating interest rates, and managing inflation. However, in recent years, a new player has emerged in the world of finance that challenges the traditional concept of a central bank - Bitcoin.
Often referred to as "digital gold," Bitcoin has demonstrated an unparalleled level of discipline and transparency that rivals even the most respected central banks. In this article, we'll explore how Bitcoin has earned its reputation as the most disciplined central bank and its implications for the future of finance.
Transparency
One of the key attributes of a central bank is transparency, as it plays a crucial role in maintaining the trust of the public. In this regard, Bitcoin stands out as a pioneer. Its underlying technology, blockchain, records every transaction on a public ledger that is accessible to anyone. This transparency ensures that every Bitcoin transaction is verifiable, making it one of the most transparent financial systems in the world.
Predictable Monetary Policy
Central banks often adjust monetary policy to meet economic and political goals, which can sometimes lead to unexpected consequences. Bitcoin, on the other hand, adheres to a predetermined and transparent monetary policy. The total supply of Bitcoin is capped at 21 million coins, and new coins are issued through a process called "halving" that occurs approximately every four years. This predictability and scarcity provide a level of monetary discipline that central banks simply cannot match.
Decentralization
Traditional central banks are centralized institutions with authority concentrated in the hands of a few individuals. In contrast, Bitcoin is a decentralized network, meaning it is not controlled by a single entity or government. Its decentralized nature ensures that decisions about its monetary policy and security are not influenced by political or economic interests, making it a more disciplined and neutral central bank of the digital age.
Inflation Resistance
Inflation can erode the value of a currency, and central banks have sometimes struggled to maintain low inflation rates. Bitcoin's fixed supply, coupled with its deflationary tendencies, means that it is resistant to inflation. This inflation resistance has made Bitcoin an attractive option for those who seek to preserve their wealth over the long term.
Immutable Rules
Bitcoin's rules are embedded in its code and cannot be altered without consensus from its decentralized network of users. In contrast, central banks may change monetary policies at their discretion, potentially leading to unpredictable economic outcomes. The immutability of Bitcoin's rules ensures a level of discipline that remains consistent over time.
Implications for the Future of Finance
Bitcoin's disciplined approach to monetary policy and its transparency provide a compelling alternative to traditional central banks. While it is not a replacement for the role central banks play in the global economy, it serves as a critical complement. It can act as a store of value, a hedge against inflation, and a tool for financial inclusion in regions where traditional banking infrastructure is lacking.
As governments and central banks grapple with economic challenges and evolving monetary policies, the existence of a disciplined and decentralized financial system in the form of Bitcoin can serve as a stabilizing force. Bitcoin's unique characteristics make it an attractive choice for individuals and institutions looking to diversify their holdings and safeguard their wealth.
Conclusion
In the ever-changing landscape of finance, Bitcoin has emerged as a powerful and disciplined alternative to traditional central banks. Its transparency, predictable monetary policy, decentralization, resistance to inflation, and immutable rules make it an invaluable addition to the global financial ecosystem. While it may not replace central banks, its unique features provide an essential source of financial stability and discipline in an increasingly uncertain world. As Bitcoin continues to evolve and mature, its influence on the financial sector is likely to grow, reshaping the way we think about monetary policy and financial discipline.
This is not financial advice and you should always do your own research before investing in any securities or cryptocurrencies.
Sci-Tech
By Keyann, Software Engineer in Web3
Stupidity can be learned
In today's world of rapid information dissemination, we often find ourselves surrounded by a plethora of knowledge and resources. However, sometimes it's not the lack of knowledge but our own internal fears and hesitations that prevent us from taking action. I recently stumbled upon a TED talk titled "Turning some ideas on their head" by Adele Diamond, where she delved deep into the concept of learned stupidity. It's the notion that over time, we tend to develop a certain resistance or fear towards new ideas or actions, not due to genuine ignorance but because of the conditioning we've undergone.
Allow me to share a personal anecdote that encapsulates this idea.
Being a regular computer user, I often find myself working with various commands and programs. On one occasion, I needed to inspect a file to ascertain its existence. The command I had to run was simple: `cat <file_name>`. But here's the catch - I had never run this command before. An internal dialogue began in my mind: "What if the command creates a file if it doesn't exist? What if I mess something up?" This hesitation, this fear of the unknown, paralyzed me momentarily.
Taking a deep breath, I decided to execute the command. To my surprise (or lack thereof), the output was blank. This left me in a state of confusion. Was the file truly non-existent, or did the command just fail to show me its contents?
Then, a simple yet profound realization hit me. Why not try the same command with a file name I was certain didn't exist? If the output was blank again, I'd have my answer. This was the logical, "smart" solution. But the fact that I hadn't thought of it immediately was proof of my "learned stupidity".
This experience became an enlightening moment for me. It wasn't about the command or its output. It was about the mental barriers we erect for ourselves. The smart solution was always within my grasp, but my fear clouded my judgment and prevented me from seeing it right away.
Adele Diamond's talk emphasizes that we, as humans, are inherently intelligent. We have the innate ability to think critically, solve problems, and come up with innovative solutions. However, societal conditioning, past experiences, and even our own self-doubt can lead us to "learn" stupidity. It's an ironic paradox - being smart enough to think intelligently but allowing fear to breed illogical hesitations.
In conclusion, the journey towards enlightenment and self-awareness is riddled with moments of doubt and hesitation. But it's essential to recognize that these moments don't define our intelligence. Instead, they offer opportunities for growth, reflection, and, most importantly, unlearning the learned stupidity. The next time you find yourself hesitating before a seemingly simple task, remember to question not just the task but the underlying fear and doubt. Challenge them, overcome them, and let your inherent intelligence shine through.
Paradigm Shift
By Roman Kuittinen-Dhaoui, CPHR, BBA (Hons)
The Benefits of Working in the Service Industry as a Young Adult
Working in a restaurant/bar as a young adult can be a valuable and character-shaping experience for several compelling reasons.
Firstly, it instills a strong work ethic. Restaurants are fast-paced environments that demand hard work, diligence, and attention to detail.
Secondly, working in a restaurant hones essential interpersonal and communication skills. Employees interact with diverse customers and team members daily, fostering adaptability and effective communication. This experience teaches young individuals how to manage challenging situations, diffuse conflicts, and provide exceptional customer service. The ability to interact with a wide range of people is a skill that extends far beyond the restaurant industry and can greatly benefit one's personal and professional life.
Thirdly, restaurant work provides a unique opportunity to understand the value of teamwork. In a restaurant, every role, from chefs to servers to dishwashers, plays an integral part in the overall operation. Young employees quickly grasp the concept of collaboration, which is a crucial skill in most professions. They learn that the success of the team is contingent on the contributions of each member, which can be a transformative lesson in leadership and cooperation.
Fourthly, the restaurant industry fosters adaptability and resilience. It exposes young individuals to high-pressure situations, handling busy rushes, managing orders, and addressing unexpected challenges. Learning to adapt, stay calm under pressure, and think on one's feet are valuable life skills that can be applied to any future career path.
Lastly, working in a restaurant often helps young people develop financial responsibility. Earning a paycheck and managing income can teach essential financial literacy skills. Understanding the value of money, budgeting, and saving for future goals are valuable lessons that can set a strong financial foundation for a successful future.
TLDR: Getting a job in a restaurant equips young individuals with work ethic, interpersonal skills, teamwork, adaptability, resilience, and financial responsibility, all of which are crucial for shaping a successful and fulfilling life, regardless of the career path they choose to pursue in the future.
(Head)Space
By Vlad
Why Do We Care About Fear/Greed Indices?
Investing in financial markets is not just about numbers, charts, and statistics; it is equally, if not more, about human psychology. One common psychological pattern in the world of investments is the tendency for people to trash their holdings when they are down and jump on the bandwagon when assets are performing well. However, smart investors understand that conviction and discipline should guide their decisions. In this article, we explore the psychology behind these behaviors and why it's crucial to make investment decisions based on reason rather than emotions.
The bandwagon effect is a well-documented psychological phenomenon where individuals tend to adopt certain behaviors or beliefs because they perceive others are doing the same. This effect is prevalent in the world of investing. When a particular asset is performing exceptionally well, the fear of missing out (FOMO) kicks in, and people rush to buy in, often at inflated prices. On the contrary, when an investment takes a hit, fear and panic set in, leading many to sell their holdings, sometimes at a loss.
Two primary emotions drive these behaviors: fear and greed. When investments are down, fear of losing more money becomes overpowering, causing individuals to sell in a panic. Conversely, when investments are booming, the allure of quick profits and the fear of missing out make greed the prevailing emotion, driving impulsive buying.
Smart investors recognize the importance of controlling emotions and following a disciplined approach. They make investment decisions based on conviction and fundamental analysis rather than emotions. Smart investors establish conviction, exercise discipline, diversify their portfolios, adopt a long-term perspective, and prioritize buying low and selling high.
The psychology of investing is a powerful force that can lead individuals to make irrational decisions. The bandwagon effect, driven by fear and greed, often results in buying high and selling low. Smart investors, on the other hand, prioritize reason over emotion. They establish conviction, exercise discipline, and take a long-term view of their investments. In the end, the most successful investors are not those who follow the crowd but those who can withstand market turbulence and make rational choices based on their own judgment. Remember, in the world of investments, it's not about following the crowd but about following your convictions.
Company of the Week
Landing AI provides deployment-ready AI solutions and enterprise-wide transformation programmes for customers worldwide.
Founded by Dr. Andrew Ng, Co-Founder of Coursera, Former Chief Scientist of Baidu, and Founding Lead of Google Brain, the company is positioned to help businesses successfully move their AI projects from proof-of-concept to full-scale production. Landing AI's mission is to bridge the gap between AI research and practical, real-world applications, ultimately enabling companies to harness the transformative potential of artificial intelligence.
It helps customers to realise the business and operational value of computer vision using enablement tools. The company's flagship product is LandingLens, an enterprise MLOps platform that offers end-to-end workflow to build, iterate and operationalise AI-powered visual inspection solutions. LandingLens is also equipped with data preparation tools and workflows that help users achieve optimal data accuracy and consistency.
Written by: Vlad Estoup, Keyann Al-Kheder, and Roman Kuittinen-Dhaoui