How Antifragility Increases Bitcoin’s Survivability

Let’s talk about antifragility: what it is, its consequences and how it relates to bitcoin and the dollar.

The term antifragile was first coined by Nassim Taleb. In the following quote, Taleb outlines the qualities of antifragile systems:

“Some things benefit from shocks; they thrive and grow when exposed to volatility, randomness, disorder, and stressors. Antifragility is beyond resilience or robustness. The resilient resists shocks and stays the same; the antifragile gets better.”

In the context of economics, antifragility suggests economies that are free of government protection, such as tariffs, subsidies and bailouts, are stronger and more efficient than economies that operate with government protection, which are fragile.

Whenever the government props up a company, that company becomes reliant on the government to stay in business. Companies could also begin to behave more irresponsibly, making highly-risky decisions, knowing that if something unfortunate happens, it could always go to the government for help. In a case like this, the government, the economy and the company’s resources are not being allocated to their best use, resulting in a fragile economic system.