The fallacy of the algorithm is that it simply computes, thus it falls prey to GIGO. Garbage in, garbage out. Given much of what will be entered are assumptions, this is inescapable. The result is that the further it is used to push a program, the greater the blowback it will generate.
Action begats reaction.
It is not as though life wasn't been going in similar circles since the dawn of intentional organisms, but this simply speeds up the process, so while it might build more quickly than an old school religion, it will also implode more quickly.
We are linear, goal oriented creatures in a cyclical, circular, reciprocal, feedback generated reality. Hall of mirrors, all the way down.