What is Anti-Fragile?
Let's find out Anti-Fragile meaning, definition in crypto, what is Anti-Fragile, and all other detailed facts.
Anti-fragile assets are the type of assets that perform better when they are exposed to volatility, risk, and uncertainty.
Some cryptocurrency experts argue that Bitcoin (BTC) falls under the definition of an anti-fragile asset. According to risk analyst Nassim Nicholas Taleb, antifragility can go beyond resistance to market volatility, and some cryptocurrencies can even grow from being exposed to volatility.
This argument is reflective of market behavior observed in some crypto assets like Bitcoin. When the stock market faces uncertainty, a number of cryptocurrencies experience notable price gains.
An anti-fragile asset tends to get stronger when faced with a major setback. An example of this is market data revealing that Bitcoin was doing well despite the 2018 crash, which saw the prices plummet by 80% within a year. Bitcoin has faced many controversies regarding its public perception and security exploits.
Bitcoin’s vulnerability is reinforced by the idea that this cryptocurrency only exists because of a selection of people who believe in it. This idea leads to a counter-opinion that cryptocurrencies like Bitcoin are a trend that is set to go out of date and disappear at some point.
Following the concept of antifragility, Bitcoin tends to become increasingly stronger with every hardship that it experiences, both in the market and due to public perception. The growing number of people investing in Bitcoin further ensures its status as an anti-fragile asset.
Despite the risks that Bitcoin can face, one important aspect is that a singular party is unable to simply shut down the whole operation. Bitcoin was built on a decentralized blockchain and runs on thousands of computers simultaneously. It is impossible for one person to shut down the whole cryptocurrency infrastructure due to the 51% principle.
However, antifragility may cause issues with Bitcoin regulation further down the line.