Never heard of positive harms?🤔
ok, stay with me: let's deconstruct one of the best concept that you can learn for business, finance, every days life:
-#antifragility-
🧵👇
1.n
Think about it: we have the word fragile, but we miss the exact opposite.
Robust is not enough: the resilient resists shocks but
stays the same.
We want to define something that gain from disorder/errors/shocks: Maestro @nntaleb gave us the term "antifragile".
2.n
The best representation of antifragility is Hydra:
Hydra, in Greek mythology, is a serpent-like creature that dwells in the lake of Lerna, near Argos, and has numerous heads.
Each time one is cut off, two grow back.
So harm is what it likes.
3.n
Want some mathematical definition? ok, let's assume:
. "x" --> the shock
. f(x) as the relative function --> the shock effects
Antifragile: the average of the effects is better than the effect of average
4.n
This type of functions are convex: think about the shape of a smile🙂
...while the opposite, fragile, are concave: 😒
ok, enough with math, let's find some real examples👇
5.n
Option trading is maybe the most effective example of antifragility:
option long position gain from volatility, in any direction.
trading -->
.fragile: short option
.antifragile: long option
6.n
...in phisical training -->
.fragile: gym machines
.antifragile: street fights
7.n
education -->
.fragile: school
.antifragile: parental library / youtube
8.n
finance -->
.fragile: banks
.antifragile: hedge funds
9.n
business -->
.fragile: industry
.antifragile: artisan
10.n
medicine -->
.fragile: via positiva (add treatment)
.antifragile: via negativa (remove meds)
11.n
economic -->
.fragile: bureaucrats
.antifragile: entrepreneurs
12.n
knowledge -->
.fragile: academia
.antifragile: erudition
13.n
political system -->
.fragile: centralized
.antifragile: decentralized - city states
14.n
...and no, #Bitcoin is not an example of #antifragility 😀
(i.e.: there is no gain from volatility with #BTC: at most, if it recovers, could be robust!).
In summary:
. the opposite of fragile --> antifragile
. same of robust? no, antifragile GAIN from disorder/errors/shocks
. math: antifragile is convex🙂 - fragile is concave 😒
. real example: option trading, decentralized political system
. no, #btc is not antifragile
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