I think people stop trading burning houses for fireproof ones when they lose trust in the fireproof houses, like when fake ones get exposed, or when speculators borrow burning houses to buy fireproof ones but can’t pay back. That messes up the exchange rate and makes everyone doubt if fireproof houses really work, so trading slows down. But in the end, the real limit is when there’s no more burning houses left to trade.
I think people stop trading burning houses for fireproof ones when they lose trust in the fireproof houses, like when fake ones get exposed, or when speculators borrow burning houses to buy fireproof ones but can’t pay back. That messes up the exchange rate and makes everyone doubt if fireproof houses really work, so trading slows down. But in the end, the real limit is when there’s no more burning houses left to trade.