Why Bitcoin is the first asset that gets safer as it gets bigger.

[CTO114]

As the norm is, when something grows rapidly, it becomes more and more fragile.

But with Bitcoin, where seeing an inverse behaviour to the norm. As it grows, more miners are securing it, more nations are regulating on its axis, increased liquidity is stabilizing volatility, and more nations are defending it.

This creates something quite unusual; it's growth is increasing it's survival.

Throughout history, very few systems gain resilience from expansion.

A good reason why every Bitcoin dead cycle paradoxically strengthened the network!

[_act_]

Bitcoin is not the first asset that is like this, another example is gold and land and there are many other assets like that. Once they get human attention, the price will keep increasing, and that is the reason they are called assets of value. Bitcoin was the first of its kind, highly adopted and which is very normal.

[BIT-BENDER]

As the norm is, when something grows rapidly, it becomes more and more fragile.

But with Bitcoin, where seeing an inverse behaviour to the norm. As it grows, more miners are securing it, more nations are regulating on its axis, increased liquidity is stabilizing volatility, and more nations are defending it.

This creates something quite unusual; it's growth is increasing it's survival.

Throughout history, very few systems gain resilience from expansion.

A good reason why every Bitcoin dead cycle paradoxically strengthened the network!

Well the amount of miners has decreased as Bitcoin grows, because as it grew the competition in mining got more sophisticated and the way you mine Bitcoin far back is not how you mine in now again, it is now more expensive, more energy demanding and so many miners had to fall off because they could not keep up with that.
But yes as Bitcoin grow so has the popularity grown and nations and the human population at large are adopting Bitcoin although I believe growth is meant to increase survival especially when you are something of value.

[Alpha Marine]

As the norm is, when something grows rapidly, it becomes more and more fragile.

Where do you get your information from? How can you say that when something grows, it becomes more fragile?
Is gold becoming more fragile? Does a company that is expanding and becoming bigger get more fragile? You don't need to pull out false statements to make a point.
When an asset grows, the stronger it becomes. Small companies have a higher chance of collapsing than a big corporation does.

Of course, Bitcoin becomes stronger as the ecosystem increases. The more nodes, the more users, the more adoption, miners and developers, the stronger the network becomes. Just like every other asset. Gold is strong because of the number of people who are involved in it, including countries.

[bitbollo]

I would say : the more we see the real adoption / real world use of bitcoin - the more we see how it can survive in the long term.
The more it "survive" the more people using for what has been created.
Speculation drives dramatically adoption. But if bitcoin was an empty protocol there was not this evaluation or economic interest...

[Merit.s]

Bitcoin is the first cryptocurrency to survive and grow in value as the rate of adoption increase and not the first asset because there are other asset like gold that has been in existence before bitcoin.

Bitcoin case is different because of its utility and decentralized nature which has made new investors to have interest in putting their money into bitcoin to preserve the value of their money since fiat loses its purchasing power overtime.

[Ambatman]

Lol more nations defending it made me chuckle.
I believe you trying to explain a bubble when you talk about fragile
It usually occurs when price has grown way more than it's value or fundamentals should be.
Gold has stood the test of time and an evidence of what Trust and faith in an asset mean
Bitcoin is still relatively young to call it the first asset.
There are companies that have been operating for years and their value is still growing.

[Jubilee58]

Bitcoin is not the first asset that is like this, another example is gold and land and there are many other assets like that. Once they get human attention, the price will keep increasing, and that is the reason they are called assets of value. Bitcoin was the first of its kind, highly adopted and which is very normal.

Yeah, that's true. Land, and gold has existed long time ago before the invention of bitcoin, and as for land, it has been an asset of great value long time ago, and will remain so so far human existence continues. Gold too is also a valuable asset, and still increasing in value as demand and interest increases too.
As for bitcoin, it is also increasing in adoption, and in value as demand increases. Because of the interest that Bitcoin is gaining, it's value, and security is equally on the rise. Bitcoin is a worthwhile investment, and it's value will continue to be on the increase as institutions, countries and individuals continue investing in it.

[Royal Cap]

First, you say that liquidity is reducing volatility. But even after the arrival of large institutions, Bitcoin's sudden collapse or huge jump has not stopped. A large sell order from whales or a decision on US interest rates still turns the entire market upside down. Second when governments introduce regulations or controls, they do not come to protect Bitcoin. They come to maintain their taxes and power. The more government regulations increase, the further Bitcoin moves away from its original ideal (freedom from central banks) and behaves like a normal financial system, I think.
And yes the mining power of the network is increasing, but the larger the system the more institutional and political pressure increases.

[ZAINmalik75]

Throughout history, very few systems gain resilience from expansion.

A good reason why every Bitcoin dead cycle paradoxically strengthened the network!

I agree with the antifragility argument, but you might have overstated it a bit. Institutional or governmental level adoption is not necessarily going to make it stronger, instead, it can act as a double-edged development. Regulations bring legitimacy, but they also introduce dependency on institutional frameworks that can change with political winds. Imagine everything that was built during Trump's era going dark under the next president.

The network itself is undeniably stronger than it was, but we should not say that its survival is based on cycles. It was not seriously threatened, and that is a conclusion that slightly outruns the evidence.

[Stalker22]

As the norm is, when something grows rapidly, it becomes more and more fragile.

How is that a norm?  Im sure there are numerous examples where thats completely false in the real world.  Sure, if you grow fast without building a proper foundation you will collapse or snap.  But thats just bad management.

Throughout history, very few systems gain resilience from expansion.

Are you sure about that?  Because historically, that is exactly how the most dominant systems on the planet survived.  Small, isolated systems are the ones that are fragile.

[uchegod-21]

I love Bitcoin, but I also do not like exaggerated statements about Bitcoin. Gold, natural resources, and some other valuable assets have been in existence long before Bitcoin was created, yet they are still valuable till date, and expansion has not affected them negatively. Bitcoin is valuable, but it is not the first to show this kind of behaviour.

Bitcoin is so because Satoshi already laid the foundation for it. Bitcoin is decentralized such that even though the identity of its creator is unknown, Bitcoin has remained resilient without a known central authority. It will remain so for a very long time.

More adoption means that people trust Bitcoin more, and as this continues, it will strengthen Bitcoin even more.

[Livingleged]

As the norm is, when something grows rapidly, it becomes more and more fragile.

This is not true anyway, usually when something grows it becomes more stronger just like humans when we grow parts of our body becomes more stronger and that’s how it applies to bitcoin also and it more it gain more adoption it value increases just like the case of gold and other valuable metals.

increased liquidity is stabilizing volatility, and more nations are defending it.

What are you saying exactly can you explain your self I find it very had to wrap my head around what you’re trying to point out by this statement.

Throughout history, very few systems gain resilience from expansion.

This is another false statement again as we have seen examples of asset that gain resilience from expansion
Because most time liquidity has a direct proportion with scale it’s only few cases that it’s not.

[Questat]

We have gold and real estate that exhibit this kind of property, but bitcoin is the first to achieve it from a decentralized, algorithmic network. Bitcoin gets safer as it gets bigger, and as the price rises, it also become economically profitable that attracts more people and get interested to embrace bitcoin. And as the value grows more, the increase rate of global adoption is also seen, thus it will be more impossible for the bad actors to attack bitcoin.

However, everything that is happening to bitcoin now is a clear fundamental characteristic of those established, long term stores of value.

[Alphakilo]

Bitcoin is not the first asset that is like this, another example is gold and land and there are many other assets like that. Once they get human attention, the price will keep increasing, and that is the reason they are called assets of value. Bitcoin was the first of its kind, highly adopted and which is very normal.

The case of Bitcoin is quite fascinating because instead of regulations, geopolitical tensions and market capitulation to make it weak and fail, it solved a historical question of scale by being too decentralized to be controlled and too digitally massive to be bent to any individual or institutional or governmental will.
Bitcoin shows how much chaos and stress makes it more secure and just like valuable gold asset, Bitcoin became as valuable and earned the name digital gold because of this anti fragile characteristics it possesses.

[Odogwu-Blockchain]

I discovered it to be more safer when institutional investors started backing it up, more awareness to the global world and the strength to overcome negative talks about it from the very beginning. Bitcoin has stood the test of time and had shown a great resilience in her development. Those who felt it to be a scam asset had changed their thoughts, those who viewed it to be ponsi scheme had had a second rethink and many more to mention.

[taufik123]

Because Bitcoin was the first and as the originator of the birth of many altcoins that appear today.
Bitcoin is the center and Bitcoin is truly decentralized while still maintaining the Proof of Work (PoW) consensus.

Not only that, Bitcoin is now also increasingly scarce because until now it has managed to mine more than 20 million BTC with a supply of only 21 million BTC which means that only 1 million Bitcoins remain unmined.
Although it is only only 1 Million but this will be successfully mined all until 2140, which means that the process of distributing the remaining coins will still last more than a century.
This slowdown is not a coincidence, but the Bitcoin distribution system is indeed designed to slow down further over time.

[Finestream]

This is not actually unusual, this is certainly the path towards an established, long term store of value, which makes it safer for the people to get into bitcoin.

Also, this is not the first asset to scale its size and security, there are firsts of it, but bitcoin is ultimately the first from a decentralized nature. Satoshi has probably seen this already that's why he's confident that bitcoin will make it big in the long run.

And as bitcoin becomes more profitable every year, this also makes a safer investment for everyone, and a better currency especially if global adoption succeed and finally bitcoin will never be an alien anymore to the crowd.

[SamReomo]

As the norm is, when something grows rapidly, it becomes more and more fragile.

But with Bitcoin, where seeing an inverse behaviour to the norm. As it grows, more miners are securing it, more nations are regulating on its axis, increased liquidity is stabilizing volatility, and more nations are defending it.

Nothing is wrong when more nations are regulating Bitcoin because that's how things work in the world, governments and centralized system always want to tax on everything and regulation means a way to collect taxes from Bitcoin users. I know it's against decentralized nature of Bitcoin but we can't do much in that area.

Increased liquidity hasn't stabilized volatility of Bitcoin, check the market yourself and you'll see that Bitcoin is still quite volatile despite having huge liquidity. The Bitcoin still dips and pumps and that means there's volatility in the market. Institutional investments have made Bitcoin liquidity safe and orderly but there's still volatility in it and that will remain forever.

[EL MOHA]

Increased liquidity hasn't stabilized volatility of Bitcoin, check the market yourself and you'll see that Bitcoin is still quite volatile despite having huge liquidity. The Bitcoin still dips and pumps and that means there's volatility in the market. Institutional investments have made Bitcoin liquidity safe and orderly but there's still volatility in it and that will remain forever.

You’re definitely right without Volatility there will be nothing like bitcoin going up and coming down, but let’s look at the degree of the volatility I think you cannot actually compare the volatility rate of bitcoin while the coin was at its early days because the as at then the volatility of bitcoin was seriously high such that you can even see the market moving 10x in a single year or in one cycle but right now let’s look at it.

Although most people are of the opinion that the reason for why the volatility then was actually high was that the market cap was low then due to price and one single buy can add volatility to the market but right now bitcoin isn’t that highly volatile anymore that’s why even during predictions you see people not overly predicting high prices like before