Definition of ‘Antifragility?’ - Antifragility is a feature of systems in which stressors, shocks, volatility, noise, mistakes, flaws, attacks, or failures boost their ability to thrive.
What is antifragility?
Antifragile definition - Simply put, antifragility is a convex reaction to a stressor or source of harm. It is a term that describes a group of things that profit from chaos and may even require it to survive and grow.
Antifragility can be applied to physics, molecular biology, chemistry, transportation planning, physical fitness, engineering, project management, computer science, risk analysis, among other subjects.
Let’s now talk about how antifragility pertains to bitcoin and the dollar.
When it comes to the subject of cryptocurrency, the meaning or overview of antifragility is not so far from the original purpose. Knowing how volatile the financial markets are, the impact of antifragility indicates its importance and effects on cryptocurrency.
Let’s take Bitcoin, for example. Aside from its volatility, in order to prevent any single organization from taking control of Bitcoin and printing more coins into existence, it is designed to be decentralized and finite.
If the United States were using Bitcoin, the government would not provide any financial protection. The lack of a government safety net implies that firms will have to act appropriately to survive. Central institutions undermine the free market by manipulating the currency and preferential treatment to well-connected businesses and companies.
Bitcoin maintains the free market's inherent antifragility.
Bitcoin uses open source peer-to-peer technology, meaning anyone with an internet connection can access Bitcoin. So if anyone tries to manipulate the currency, it can be quickly addressed by other people on the network. This is what makes Bitcoin so unique.
It operates on a vast network of computers so that anyone can audit its supply and transfers at any time. This is the direct opposite of fiat currency, centrally managed behind closed doors. No one knows if, when, or how a fiat currency is manipulated. We are all told to stop asking questions and trust the higher-ups at the Federal Reserve.
Is cryptocurrency antifragile?
Although the financial markets are chaotic and volatile, most cryptocurrencies stand firm and build upon that volatility. This proves how antifragile cryptocurrencies are.
How does antifragility help bitcoin?
Bitcoin is a monetary system that relies on decentralized market consensus rather than a centralized authority. Consensus rules can be validated and enforced by the network participants, each of whom is motivated to act in the network's best interest as a whole. Both the network and the price of Bitcoin have become more assertive in recent months. The likelihood that it will continue to run successfully under adversarial attacks (antifragility) is considerably higher than any closed system as Bitcoin's open, permissionless, and decentralized network.
People assume that because Bitcoin is hosted on computers, it may be taken down. On the other hand, Bitcoin is impossible to halt since the open-source software operates on hundreds of thousands of computers simultaneously, and there is no single point of failure.
Bitcoin's decentralization grows in tandem with the number of new machines that join the network. By increasing degrees of redundancy and reliability, the system can withstand attacks in the future, and it also evolves indefinitely. Due to its resilience to any form of attack, Bitcoin has become a popular target for criminals and terrorists alike.