Since it was launched in 2009, Bitcoin has taken the world by storm, establishing itself not just as a digital currency but also as an alternative to FIAT currencies. Bitcoin adopts open-source peer-to-peer technology that ensures that it can adapt, improve, and maintain its decentralized nature.
Over the past decade, Bitcoin has grown dramatically in acceptance and adoption across the far reaches of the globe. Yet, this does not imply that it never faced criticism or backlash from the public. Then, how has the cryptocurrency survived – and indeed thrived – in such adversity over the years? It’s simple: Bitcoin is antifragile.
To explain further, this comprehensive guide will look into what antifragility means and how this quality has ensured Bitcoin’s survivability all through the years. Keep on reading!
What is Antifragility?
Antifragility is beyond robustness or resilience. While resilience can resist shocks and remains the same, antifragility improves and thrives in adversity.
With relevance to economics, antifragility talks about economies that do not rely on government protection, including subsidies, tariffs, and bailouts. Such economies are much more efficient and stronger than those that run with the protection of the government, which are regarded as fragile.
What Makes Bitcoin Antifragile?
Bitcoin is characterized by volatility, randomness, and shocks. While these factors can be harbingers of the end of some economies or assets, Bitcoin keeps improving and thriving in the face of these adverse factors. This makes Bitcoin Antifragile: the ability to continue gaining wide acceptance while increasing in value.
As stated earlier, Bitcoin – just like other cryptocurrencies that followed, including Tesla coin – is decentralized. This implies that no single entity holds the decision-making authority, unlike other centralized systems. Governments have tried for a while to control Bitcoin, yet their efforts have proven futile.
As Bitcoin grows, its regulation across the globe has also increased. The digital asset is seen as a threat to the traditional FIAT currency. Owners of Bitcoin have a certain level of freedom, which was not possible before it was launched. Without the need for a third-party intermediary, holders of the cryptocurrency can send funds to anyone at different locations globally.
Bitcoin is impervious to attacks
Over the past centuries, governments of modern nations have sought different ways to destroy Bitcoin. After all, this is an unprecedented technology that eats away their power. The government wants to force its citizens to provide more services than they are willing to. The emergence of Bitcoin has contributed significantly to reducing this power.
The antifragile nature of Bitcoin also implies that the government has no control over it. Rather they fear it. All attacks that have been launched against it have only made its value increase. Besides this, so many bad articles have been written about the end of Bitcoin.
It is no strange fact that humanity is often wary of a novel technology that promises to alter the norms of routine activities. Bitcoin – as well as other cryptocurrencies – is seen as a threat that changes the traditional ways to carry out transactions. Yet, as the media attacks the cryptocurrency, it kept gaining attention and increasing in value.
Central banks have tried to restrict the emergence of technologies that limit their power of extracting unnecessary charges from customers. Likewise, the government has tried to limit the use of assets that are a threat to their FIAT currency. Yet, the antifragility of Bitcoin has ensured that it can thrive in these situations. After all, Bitcoin is decentralized and no entity can hold the absolute decision-making authority. While government policies are among the factors that can influence Bitcoin prices, its volatility has only promised to increase its value in the long run.