As a tsunami of capital has flooded into the artificial intelligence arms race in 2023, it is an excellent time to reflect upon the foundation of human intelligence ─ the mechanics of the mind. While I am not an expert on the science of how the mind works, I do have one from which to speak.
Quantum Thought
Richard Feynman, a pioneer in the theoretical physics and quantum mechanics, called quantum electrodynamics the “the jewel of physics” based on the accuracy of its predictions. Another leading theorist, Harald Atmanspacher, is credited with the following statement on Wikipedia:
Since quantum theory is the most fundamental theory of matter that is currently available, it is a legitimate question to ask whether quantum theory can help us to understand consciousness.
As quantum mechanics forms the foundation of our known universe, it is natural for investors to ask whether the quantum world offers clues for life in the macro world? How do we translate the fundamental building blocks of the quantum universe into our everyday lives?
Quantum Translation
There are two concepts which begin to lay a foundation for investors when applying the principles of quantum mechanics: entanglement and superposition. Conceptually, paraphrasing from Wikipedia’s description, entanglement occurs when:
A group of particles interact in such a way that the quantum state of each particle of the group cannot be described independently of the state of the others.
From an investor perspective, we are concerned with transforming the following sequence: when particles interact and become entangled. The entangled particles, in layman’s terms, become one instantaneously connected system, referred to as “spooky action at a distance” by Albert Einstein.
One can transform the fundamental principle of entanglement into the investment world by replacing particles in the quantum world with conceptual models in the macro world of human activity. Notably, this is but one transformation of quantum entanglement. The variations of transformation are theoretically infinite, being dependent on imagination alone.
Superposition
With a theoretically infinite number of conceptual models in hand, or entangled in one’s head as it were, investors have in their possession powerful computing capabilities with which to filter and manage opportunities. This leads to the second concept of quantum mechanics, superposition.
On the quantum level, superposition is spoken of in terms of the discrete states which are possible at the tiniest levels of the universe’s building blocks. Transforming this into the investment world, superposition becomes synonymous with thoughts and ideas, such as investment opportunities under consideration.
The entangled conceptual models of the mind, if used judiciously and contextually, are theoretically capable of a form of quantum computing. That is to say a form of quantum computing on human time-space scales, and which is unique to each investor. In economic speech, no two utility curves are identical.
Conceptual models form the foundation for entanglement.