Dan Held

Information Theory of Money (e02)

10 min · 29. mar. 202010 min
episode Information Theory of Money (e02) cover

Description

Prices are the coordinating force of a free market system. Each individual decision-maker can rely on the prices of goods and services to help with their decision making, as the prices themselves are a distillation of all known market information into a single metric. In other words, the compression of all relevant data is ultimately manifested as price (for the more technie minded, it’s a one-way hash function).

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