They are four kinds of trading according to Pareto; An immortalized name in the economics mathematical science.
1. A win win trade; one that the both parties win, hence the number of people into such trade keeps booming
2. Trade in which a party gains, but no one loses, and again welfare will definitely go up; more users and investors
3. Trade in which no one gains, but someone loses
4. Trade in which some party win and some loses, and increases the amount of profits of those who won.
People are wise, they'll go for one and two, but will trade on it until a point where people can't trade without getting worsen off. But, in 3 and 4, where I placed bitcoin, especially 4. The trade cannot be profitable if people don't lose for others to win. Yet it has some qualities of the results of number 1, finite supply. When the supply of bitcoin ends. Wouldn't people look for other things that'll serve them, other than bitcoin?
People's interest can change in the market. Which is what balances the market. Difference in utilities.
No fud! just reasoning like an economists. Using their mathematical science. You can contribute or share you insights on Pareto principles; Pareto optimal and Pareto superior trades.
Thanks.
I think people will get bored of trading if they don't study trading more deeply because as far as I know, the loser pays the winner. Traders will learn how to control their own emotions and psychology. Not everyone can become a trader because they have learned these two things, but everyone can become an investor. at least as long as there is money
what do you think?