SV: I believe people have a grave misunderstanding of how systems evolve…Darwin gave to us a slow evolution that was measured over time and consistent. What today many evolutionists prefer is a more anarchist understanding of evolution, an evolution in fits and spasms, unpredictable. In the socio-cultural realm, the same is true.
RTG: It ties right in with Nassim Taleb’s new book Anti-Fragility. He gives an analogy, if you’re shipping champagne glass you write ‘fragile’ on the box, because a little bit of chaos can shatter them. They are susceptible to chaos. What is the opposite of fragile? Well it is not durable. There really is no word for connoting “Please, rough this box up.” That’s exactly what Bitcoin is. In the Great Credit Contraction, I wrote that the system is in implosion, it is dead, zombified now and it is leading to chaos as it decomposes. The more chaos, the more stress on the system and institutions like Fannie or Freddie, Bank of America, Washington Mutual, Bear Sterns, MF Global and now the Federal Reserve with Germany wanting its gold back, are in trouble. On the other side you have Bitcoin, and actually the more chaos the better it does. It’s a negative beta asset to the banking system. You couple that with its censorship resistant nature, tiny market cap and to where it could grow, I mean just to be useful in any finance it would need to be $1,000 a coin.
Evolution in fits and starts, also known as punctuated equilibria, although previously denounced as marxism, this is the way nature works.