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10 sats \ 2 replies \ @KoreaComK 3 May 2023 \ parent \ on: Why America will soon see a wave of bank mergers tech
About decentralization vs centralization
No centralized entity, no matter how good and specific it may be, is better than several decentralized entities.
There is a study that was done asking people the weight of a cow. People were ordinary individuals without any knowledge of this animal. There were more than 17,000 people, and the average response was very close to the animal's true weight. The funny thing is that the result was much closer than when they asked the same question to people who were from the area, but with fewer people.
This shows that society manages to reach a consensus closer to reality than any centralizing entity. This proves that any centralized decision is worse, by definition, than a decentralized one.
https://www.npr.org/sections/money/2015/08/07/429720443/17-205-people-guessed-the-weight-of-a-cow-heres-how-they-did
Another interesting thing about this how it is more frightening to many people that "no one" is in charge than having a small number of people with a lot of power. I have thought a lot about this and logically this fear makes little sense. But then, most people don't think or act logically. We follow the crowd and are easily influenced. We are influenced to trust "authority" from a very young age in school and it is re-enforced all over the place.
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Yep. In my experience people don't really understand the fatal flaw of socialism/communism. Its this very issue. Central planning doesn't work. You can see people don't get that when they say they hate communism but embrace the same principles of centralized command and control.
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