Drawing circles & collective intelligence
Drawing circles & collective intelligence (wisdom of the crowds)
This is the first time I have realized the collective intelligence intuitively by drawing circles. Although I am trained as an engineer, I could not draw a circle very well. However, I could draw a series circles at or near the original circle. The circles look more and more round as the number of circles increase. After a while, the circles become more and more like a very round doughnut.
Although I could not draw a round circle in one closed line, I could draw a round doughnut very well. This is very similar to the collective intelligence derived from the wisdom of crowds. As more and more circles are added into the doughnut, the doughnut becomes very round. The average circle lines become the doughnut.
Further I have realized that the collective intelligence can be a result from one person along the time scale or from the crowds along the space scale. Now the Internet has shrunk the distance among the people. So thousands or even millions of people can communicate over one project like the Wikipedia. The intelligence can be improved over the space and time scales.
A person can learn new things over his life time. He becomes wiser as he ages. After a while, his knowledge may not increase, his wisdom can continue to improve since the similar problems can happen many times in his life time.
The collective intelligence works in similar ways. A collective project like Wikipedia can work so well is not due to the increasing wisdom of the crowds. It is due to the many repeated updates by more similarly intelligent crowds.
In a way, the wisdom of a person or the wisdom of the crowds can improve over time. It can also improve simply by repetitions. There is no dispute that the civilization level has increased over the human history. At the same time the wisdom of a person is also increasing over his life time.
The intelligence of the society can not improve its total wisdom over a short period of time. However, the total intelligence can be increased dramatically by linking more people doing the same things repeatedly over a very short period of time.
Applying this understanding in the stock market, one has to realize that the value of a stock may not be recognized by one person at the time. But the real value will be realized over time or by more stock players.
This is the first time I have realized the collective intelligence intuitively by drawing circles. Although I am trained as an engineer, I could not draw a circle very well. However, I could draw a series circles at or near the original circle. The circles look more and more round as the number of circles increase. After a while, the circles become more and more like a very round doughnut.
Although I could not draw a round circle in one closed line, I could draw a round doughnut very well. This is very similar to the collective intelligence derived from the wisdom of crowds. As more and more circles are added into the doughnut, the doughnut becomes very round. The average circle lines become the doughnut.
Further I have realized that the collective intelligence can be a result from one person along the time scale or from the crowds along the space scale. Now the Internet has shrunk the distance among the people. So thousands or even millions of people can communicate over one project like the Wikipedia. The intelligence can be improved over the space and time scales.
A person can learn new things over his life time. He becomes wiser as he ages. After a while, his knowledge may not increase, his wisdom can continue to improve since the similar problems can happen many times in his life time.
The collective intelligence works in similar ways. A collective project like Wikipedia can work so well is not due to the increasing wisdom of the crowds. It is due to the many repeated updates by more similarly intelligent crowds.
In a way, the wisdom of a person or the wisdom of the crowds can improve over time. It can also improve simply by repetitions. There is no dispute that the civilization level has increased over the human history. At the same time the wisdom of a person is also increasing over his life time.
The intelligence of the society can not improve its total wisdom over a short period of time. However, the total intelligence can be increased dramatically by linking more people doing the same things repeatedly over a very short period of time.
Applying this understanding in the stock market, one has to realize that the value of a stock may not be recognized by one person at the time. But the real value will be realized over time or by more stock players.
posted by Unknown at 7:17 AM
0 Comments:
Post a Comment
<< Home