The proof goes as follows:-
Let $F = 1 + x + 2x^2 + 3x^3 + 5x^4 + 8x^5 + ...$
Then
$$\begin{align} 1 + Fx + Fx^2 &= 1 + (x + x^2 + 2x^3 + 3x^4 + ...) + (x^2 + x^3 + 2x^4 + 3x^5) \\ 1 + Fx + Fx^2 &= 1 + x + (x^2+x^2 + 2x^3+x^3 + 3x^4+2x^4 + ...) \\ 1 + Fx + Fx^2 &= F \\ \frac{1}{1-x-x^2} &= F \end{align} $$
We rearrange the terms and we get this result which can be then manipulated further to find formula for nth Fibonacci term.
I want to focus on the rearrangement of terms in an infinite series. This is no different from results like $ 1 + 2 + 4 + 8 + ... = -1$.
The usual answer given is that we cannot treat an infinite summation like this like real numbers and apply normal addition and subtraction rules. We must apply sophisticated techniques like limits to evaluate these sums. So $ 1 + r + r^2 + r^3 + ... $ only makes sense when $|r| < 1$.
So going back to the Fibonacci proof above. We are applying normal addition rules for an infinite summation and also the result $\displaystyle F = \frac{1}{1-x-x^2} $ doesn't make sense for any value of $x$. But we still use this result to complete the proof. Why does it work?
Isn't this the same as using the result $ 1 + 2 + 4 + 8 + ... = -1 $ to prove other results? It would be absurd to use it as basis for other proofs.
Please shed some light on this. I am really confused.
You can prove a bound like $F_n<2^n$ using induction so that the power series conveges at least for $|x|<1/2$ and the manipulations are valid. More generally, for a linear recurrence with constant coefficients, the radius of convergence of the resulting power series will be the minimum of the reciprocals of the roots of the characteristic equation and the power series hence will have nonzero radius of convergence.