Chaos Theory: A New Approach

Chaos Theory is the study of how small differences in initial conditions of a system can lead to vastly different outcomes over time, making long-term prediction difficult. It reveals that some systems—like weather, ecosystems, or markets—are sensitive and inherently unpredictable despite deterministic rules. Instead of randomness, chaos arises from complex, nonlinear interactions within the system. This theory helps us understand why seemingly simple systems can behave in complex, unpredictable ways, emphasizing the importance of initial accuracy and the limits of precise forecasting in complex environments.