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Exponential growth can continue in virtual realities as the physical reality maxes out.



There are energetic constraints on the processing of information that eventually become relevant, though far beyond limits sans virtualisation.


Or perhaps the capability of humans to actually have so many economical transactions will max out first, no matter what virtual reality.


This assumes that the virtual realities are constructed in a proprietary model with consumers and producers. Actually, everybody would have to be both, otherwise the system would grind to a halt with consumers unable to raise funds to purchase products.

But information doesn't need to be rationed in that way: what happens if people join an open source virtual reality instead, where consumption is unlimited and production is voluntary? Nothing in this world would be part of the economy as economists measure it.


Did you read the piece? They talk about VR.


Actually, they dismissed it pretty quickly I thought.


I believe the "dismissal" is this cogent argument:

Shuffling bits around takes energy; if your virtual reality services grow exponentially and energy production doesn't, then the price of energy must also increase exponentially or else one of your VR companies could buy all the energy and shut down the competition.

Energy production (and computation) are limited by the capacity of the earth to vent heat into space at a reasonable surface temperature.

So unless you allow for an exponentially expanding real-world physical economy, you can't have an exponentially growing virtual economy.


The price of energy is capped at the cost to privately produce it for yourself, which is probably pretty low in the scheme of all encompassing virtual real estate fiscal gods.


Not unless the physical economy is growing at about the same rate as the virtual one. Or else how is that extra power generation capacity being added?


If the virtual economy grows 10%, that doesn’t mean we need 10% more energy to make it happen.


1 additional bit of information allows exponentially more complexity to exist. Digital scales very very well.




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