Re:UST Stablecoin Loses Dollar Peg
by acchow on Monday May 09, 2022 @08:31PM
(#31321819)
> The immediate effect is that money is transferred from people who are bad at predicting the future to people who are good at predicting the future
After the crypto bubble collapses, I think what we'll discover is that it was a great mechanism to transfer wealth out of people who badly want to predict the future to people who have so much money that they don't really care how it plays out - it's just some small percentage hedge of their gigantic portfolio.
This is one reason bubbles are so harmful to regular people - if they join in, they could lose their shirts. But the truly wealthy are just picking between years of underperforming returns vs risk.
After the crypto bubble collapses, I think what we'll discover is that it was a great mechanism to transfer wealth out of people who badly want to predict the future to people who have so much money that they don't really care how it plays out - it's just some small percentage hedge of their gigantic portfolio.
This is one reason bubbles are so harmful to regular people - if they join in, they could lose their shirts. But the truly wealthy are just picking between years of underperforming returns vs risk.