Why You Might Want to Make a Small Investment in Numerai's Crypto

Many years ago, there was a brilliant mathematician named Jim Simons. He taught math at MIT and Harvard and spent some years working for the National Security Agency (NSA) using math to break codes. Then he started using math to figure out price moves in the stock market. He created a hedge fund, Renaissance Technologies, and hired a bunch of mathematicians and data scientists. They didn't know anything about the stock market, but they were really good at pattern recognition and finding anomalies in data. His hedge firm was unbelievably successful, and Simons became a multi-billionaire.

According to Simons in his Ted Talk, hedge funds had a big advantage over individual day traders who tried to trade stocks rapidly. "The real thing," he said, "was to gather a tremendous amount of data." Once you had all the data, you could try to spot trends and outperform the market. "We take in terabytes of data a day."

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