Tuesday, August 3, 2021

Bitcoin Antifragility

The antifragility of Bitcoin implies that it gains and expands from disorder and adversity. It’s not surprising that Bitcoin is not only robust to attacks but it can also be seen as antifragile from an economic and technical point of view. While all the attempts to end Bitcoin have so far been defeated, a plethora of these efforts have only made Bitcoin stronger by eventually helping to identify its weaknesses and show ways to fix them.

Furthermore, all the defeated attacks are a testament to participants that it has come to stay and an advertisement to the outsiders of its impenetrable security. A team of software developers, hackers, reviewers across the globe have developed a financial and professional interest in improving or strengthening the Bitcoin network. Anytime a particular weakness is found in the code specification, coders will be attracted to offer solutions and then suggest them to the entire network member for adoption. It is important to note that only operational changes can be made to the system to run more efficiently, but not to alter the essence of the operation of the coin.

Media Acceptance

Oftentimes, new technologies are hard to understand by the media, and as such, Bitcoin has received hostile acceptance by the media, as is the case with lots of technologies out there. Several websites have collected numerous articles announcing the end of Bitcoin. Some of these writers viewed Bitcoin to be a transgression to the worldview and were obstinate in considering the fact that they could be wrong. Most of them view Bitcoin’s existence to be wrong and they thought it would meet its end. Some even believe Bitcoin needed to be changed for its continued availability, and when they saw it never changed, they prognosticated that it would be ruined eventually.

The more attacks they launched at Bitcoin, the stronger it got and the more widespread attention it got. Indeed, it has grown in processing power and market value. It has even been predicted that at some point, Bitcoin would have been higher in value than Gold! Most Bitcoin owners started appreciating the network more when they realize how often it has been written off and the manner with which it has responded by operating successfully. In fact, several trading websites, including BitQt, have been flooded with transactions, which further illustrates how well it has reacted to media criticism

The Silk Road Scandal

A good example of Bitcoin antifragility was in 2013 when the FBI arrested a Bitcoin owner who granted people access to sell and buy anything they want on his website – Silk Road – including illegal drugs. The association of Bitcoin with illegal drugs in the public’s mind was thought to trigger the end of the network. Instead, Bitcoin responded in an extraordinary way. Even though the price of Bitcoin dropped from $120 to $100 on that day, it skyrocketed at a rapid rate and reached a whopping $1200 per bitcoin within the next few months.

Final Verdict

By surviving the Silk Road scandal, it proved itself to be a currency beyond crime and it benefited greatly from the publicity it was given. Owing to their inability to control it and the fear that accompanies such insecurity, some governments across the globe have resorted to banning bitcoin in their countries. Instead of suffering significantly from these decisions, Bitcoin keeps getting stronger. Its value keeps increasing, and as of the time of writing, there seems to be no indication that will change. Bitcoin as an antifragile currency has proven its continued availability and its critics can only marvel at its continued success.

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