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.
Btc or other alcoints function the same as a zero-sum game, the result is often equal to someone else's loss.. This is a scenario where Pareto's 4th type of trade holds. And yes, with finite supply being one of Bitcoin's key attributes, it does share certain aspects of a scenario resulting from Pareto's 1st type of trade.
The future interest in Bitcoin and its alternatives certainly hinges on abundant factors including its limited supply, market demand and regulatory environment. It may be later or sometime when the btc supply decreases, but this really depends on factors such as trust, security, and ease of use of the alternative..Your viewpoint employs a well-reasoned economic perspective, tying in the Pareto principles beautifully. What is clear is that this crypto is most sensitive to negative news issues, meaning its price becomes uncertain due to this influence