Is the crowd wise? Revealing the results of a popular trading strategy study.

The concept of: Crowd Wisdom

The general idea characterizing the essence of “crowd wisdom” is that large groups of people can collectively make smarter decisions than individuals. And if we use a decentralized infrastructure, this concept manifests itself even more vividly, as decentralized organizations rely more on collective consensus and market mechanisms than on hierarchical expertise.

How it can affect the prediction of sports betting

The outcome of a sporting event cannot be known a priori, but even in such circumstances the crowd usually provides an accurate estimate of the respective probabilities of the outcome.

An example from history

In 1906, the scientist Galton noticed an interesting scene at a livestock fair where visitors were trying to determine the exact weight of cut meat. He later discovered that although all the guesses were wrong, their combined median differed from the actual answer by only 0.8 percent. This idea was quickly picked up by other researchers and proved applicable to almost any possible scenario.

Taking advantage of the wisdom of the crowd

How can knowing all this be useful? In betting on all sorts of events, there is no single winning formula or information that will dramatically increase your profits. However, understanding the “wisdom of the crowd” and the “herd mentality” can help shape strategies and methods in the market.

Results of the study

Now that you have the information you need to understand how “crowd wisdom” works, we can move on to the results of our study.

Polars

The new DeFi platform for creating secure polar tokens, the price of which depends on the results of specific external events. Within the POLARS platform, users can buy, sell and exchange polar tokens, as well as participate in the distribution of the platform’s commission income.

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Polars.io

Polars.io

Polars.io — The new DeFi concept for the Prediction Market.