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Rational actors make money from the irrational behavior of others, leading to the most rational acquiring more capital at the expense of the less rational over
by CryptoPunk 6y ago
Rational actors make money from the irrational behavior of others, leading to the most rational acquiring more capital at the expense of the less rational over time, and therefore capital in general being governed more rationally.
To put it another way, the market rewards economically beneficial behavior, like shorting bubbles and investing during depressions. That markets reduce market volatility is a widely accepted conclusion of economists.