Venkatesh Rao ☀️
@vgr
There’s an important general principle here. There is no permanent algorithmic source of alpha. Once you mine out your source, you enter a degeneracy cycle. https://twitter.com/halvarflake/status/1599704805714206720?s=20&t=PFD-SMSZO4syMhpxcuBnkQ
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Venkatesh Rao ☀️
@vgr
We made the mistake of thinking social feed algorithms were perpetual motion machines. No. They’re fossil fuel machines.
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Venkatesh Rao ☀️
@vgr
Algorithmic exhaustion. When you’ve fully captured a social dynamic, only those who can escape the captured state are worth anything. The captives are in a zero-alpha degeneracy. A ground state where rents shrink to zero.
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