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But in your analogy, nothing was lost. Sure the training didn't get the silver medalist into first place, but it's not as though that training somehow becomes
by reificator 9y ago
But in your analogy, nothing was lost. Sure the training didn't get the silver medalist into first place, but it's not as though that training somehow becomes useless.
- dsacco 9y agoTrading activity is the same way. Individual pairs of bids and asks are zero sum, but the emergent behavior of the market is non-zero sum (liquidity, price discovery, efficiency, etc). Sure, one trader might lose, but the trade contributes a signal to the market, the effect of which is a gradual increase in overall value that benefits everyone. Categorically speaking, they are the same. The difference is one of degree: financial markets consist of many two-party competitions with material loss, and sports consist of multi-party or competition with non-material loss.
- reificator 9y agoIf cryptocurrencies don't follow the path of the Beanie Baby, sure.