[shalmanese]

At the limit of 100% passive, everyone agrees the system would break down. But that’s not a realistic endpoint. There are studies to suggest that as little as 1% active is enough to keep the markets functioning and we’re nowhere near that point.

[davvolun]

Of course at 1%, or really, any sufficiently small and centralized number, it becomes easier and easier to game the system...

I'm thinking specifically of attempts to artificially inflate crypto coin valuations for members, then quickly sell off before anyone catches on. Should be, I would think, impossible to do that across a large area of the market, but if everyone is investing in index funds, it might be, I would guess.

Nonetheless, for my situation, index funds are the best rational solution. That or hiding all my money under my mattress.