P: Why is Extremistan extreme?

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Extremistan = Free replication * Free & Quick distribution

Taleb divided reality into two categories Mediocristan and Extremistan. More: P: Mediocristan and Extremistan

Why is Mediocristan average and Extremistan extreme? The answer is, the former is bound by laws of physics while the latter is abstract and therefore free of physical constraints. As a result, in Mediocristan each increase in output requires a proportionate increase in input; in Extremistan, however, a bigger output doesn't cost additional input. A writer doesn't have to write another book every time a new person wants to read about his ideas; a programmer doesn't have to write additional code every time another person wants to use his app; a singer doesn't have to perform a song every time someone wants to listen. Because of this, Extremistan can scale almost infinitely leading to compound effects which result in extreme impact.

So, there are two reasons for Extremistan—free replication, free & quick distribution—that lead to its extreme—i.e., compounding—nature (more leads to more). In Extremistan nothing slows you down, you aren't bound to the laws of physics, so you can replicate indefinitely. Also, information spreads quickly and is, again, free. When one node of this network is affected all other know about it almost instantaneously, like a spider's web.

Inputs can be far from the outputs because information spreads quickly and freely.

This leads to compounding and network effect—everything can grow simultaneously and indefinitely—which leads to exponential growth.

The positive side of this reality is that sharing doesn't cost you anything, like lighting a candle from another candle.

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