From my research, I've come to think of the economic situation, included the expression of new currencies as these three ideas.
Efficiency aka Fragility
When you optimize something for a specific output, it can become extremely efficient - but only in the way that it has been optimized. While this is great for achieving the task you have designed it for (perhaps product output) it can not necessarily withstand shocks to its system without receiving some damage or losing its integrity. You could say that this highly efficient system is also fragile.
Resilience
While not the most optimized, something that is resilient can withstand shocks without losing its integrity or functionality. Resilience also includes diversity, options and variety. A resilient entity can withstand shocks.
Anti-Fragility
This is a term coined/defined/invented by Nassim Taleb, author of The Black Swan and Fooled by Randomness. He describes Anti-Fragility as something that benefits from shocks to itself/the system. An example of anti-fragility is bug testing new software. I see my work with the Cacophony Society as an expression of anti-fragility to social culture. An interesting thing I've noticed about anti-fragile things, is that at some point, something that is anti-fragile, becomes (more) resilient. Return to the software bug example, as you pound on the new release, finding (and then fixing) bugs, the software becomes more resilient.
And....
I see these three concepts as ideas that are moved between on a continuum. From my research on the Future of Alternate Currency and Transactions, it seems to me that the explosion in alternative currencies and transaction platforms is an emerging phenomum coming from the resilance bucket. Because the traditional economic system has been manipulated for hyper-efficiency. Many of the developments in alternate currencies are bottom-up, emerging from communities and individuals who are looking for more stability and security in the economic system. These are a direct response to the manipulated hyper-efficiency. (I alluded to it in this post, Why Alternate Currency Economies are good for the Traditional Economy.)
Now, these concepts are pretty raw, and the application of them to economics even rawer, so I'd love to hear your thoughts.
Note: The ideas of efficient, resilience and anti-fragility are not my own. I have been significantly influenced by this paper from authors Lietaer, Bernard., Ulanowicz, Robert E., Goerner, Sally J., McLauren, Nadia. "Is Our Monetary Structure a Systemic Cause for Financial Instability? Evidence and Remedies from Nature" in the Journal of Future Studies.
Additionally, conversations with Dr. Oliver Markley and his work on resilience and wild cards have directly influenced my thinking as well as ideas written and spoken more eloquently than I, by Nassim Taleb. I am also very much influenced by Theodore Modis's work on S and Bell Curves and Harmonic Substitutions/Transitions.
What I have done, is take these concepts and braided them based on observation, intuition and results from my research on Alternate Currencies and Transactions of the Future.
Thanks to Sanjay Sabnani for the anti-fragile example of bugs in software. Many thanks also to my professors Andy Hines and Peter Bishop for their continuing support and dialog.
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