Everything you see is actually your brains interpretation of what things will look like in a fraction of a second. This greatly improves our reaction time. As a result, movement humans see is actually a function of patterns and expectation. This optical illusion takes advantage of this fact and creates an expectation of movement within our brains.
In fact, if you look very closely at the center gray space between the two circles, you can see that the boundaries are not moving at all.
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