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 believe some individuals might lose interest in trading Bitcoin if it experiences sustained periods of low profitability. This is particularly true for those who entered the market due to fear of missing out (FOMO), without fully understanding the inherent volatility of cryptocurrencies and expecting overnight riches. Additionally, the high-risk nature of Bitcoin requires significant effort in analysis and prediction, which can be mentally draining for some investors, especially if they fear sudden losses without proper research and planning.
However, I don't foresee Bitcoin losing its overall appeal anytime soon. While there may not be a single technology currently offering similar potential for profit, the underlying blockchain technology and its applications hold immense promise for the future. Ultimately, the staying power of Bitcoin will depend on its ability to adapt and evolve alongside the ever-changing financial landscape.