Friedrich Nietzsche already wrote: “What doesn’t kill me makes me stronger”. You could also say that we grow with our challenges. Behind this admittedly tasteless phrase is a fundamental truth that Bitcoiner is currently relying on more than ever: Bitcoin’s anti-fragility.
Antifragility means bestselling author and star economist Nassim Taleb a concept that describes the opposite of fragility. Not robustness, but antifragility is diametrically opposed to fragility. Because what is robust can only withstand resistance and setbacks, whereas antifragiles grow in their tasks. In other words, antifragile systems come out of every obstacle stronger than they entered.
Bitcoin is antifragile
It is a non-trivial consideration that authors have been acting on Bitcoin as such an anti-fragile system for some time. After all, every drop in the course is followed by a smug “I told you so” by Bitcoin skeptics, such as gold advocate Peter Schiff. However, if Bitcoin were an anti-fragile construct, falls in prices would not weaken Bitcoin, but strengthen it. A hypothesis that can be subjected to an empirical test.
Apart from the violent rash in March of this year in the wake of the Corona crisis, there is a clear trend: Bitcoin’s volatility is decreasing. Since one of the central functions of the digital currency is that of a means of payment, falling volatility indicates increasing suitability as actual money. How can this be explained?