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.
Your approach to Pareto principles in trading is presented very clearly. It is known that successful deals should benefit all parties involved. However, in the world of cryptocurrencies, where there is limited supply, questions arise about fairness and equality of gains.
My opinion is that it is important to find a balance between competition and cooperation in the market. Only in this way can an environment be created that stimulates innovation and contributes to the development of the entire community.