When trading with a Librarian villager, the trade that can available might be about 6 emeralds for 3 bookshelves, and another trade with 4 books for an emerald. If the villagers like the player enough, they will discount the trades. In my case it made the trades 2 emeralds for 3 bookshelves, and 1 book for an emerald. Making it an infinite loop of trading.
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It's not exactly for free though, since you have to do the work of breaking the bookshelves. It's like you have a manufacturing job, you buy something, do something of value, then sell for a profit. I don't think it's a bug.
I do not think that breaking bookshelves is worth getting emeralds. The fact that the infinite emeralds are only available from discounts, but not from the original trades is also evidence of it's likely hood of it being a bug.
Pretty sure this is an intended feature; there are already villager mechanics that severely nerf "exploits" like these. I mean, you could get an emerald from two sweet berries from a butcher in certain cases. There are two villager mechanics that severely nerf these "infinite trade exploits". These two mechacics are "supply and demand" and "restocking". When you trade too much with a certain villager, they will stop trading that item until they restock (which they can only do twice every day), and they may make the item you're giving them less valuable. One way to get loads of emeralds (and maybe make a quarry) is to have a mending silk touch pickaxe and many masons (to compensate for the restock mechanic), and if you have max efficiency and a beacon as well, you can get loads of emeralds and the experience (hurled by the villagers) will adequately repair your pickaxe after you get all the stone, diorite, andesite, and granite in a matter of moments, which is needed for trading and getting loads of emeralds. This could eventually give you enough eneralds to replace all those iron/gold blocks you made your beacon pyramid out of, but it actually costs a lot of work, unlike just AFK fishing.
Edit: tearing out the ground with silk touch and selling the mass of stones to the villagers really does give loads of emeralds when testing it. I managed to get exactly 45 emerald blocks in four minecraft days. It's also a good source of experience if you don't want to build a mob farm, or if you want to get more out of the process of building a witch farm.
It gets even better! Try curing the guy, I got 1 emerald for 3 Bookshelves and also the 1 book for 1 emerald = profit.
But I don't really consider this a bug or exploit seeing how the super cheap prices eventually wear off.
At least the villager "exploit" can still be used when curing the villager, but only sometimes. It still kind of makes the bookshelf trade useless though, as most of the time buying a bookshelf is the same as selling three books (with a cured villager), so you only get experience. I do confirm that this "exploit" is patched for the most part.
still works in 1.15.x and 1.16 snapshots if you cure the villager multiple times (single-cure wont work)
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Getting past trade loop fixes via villager curing isΒ MC-181190
It's not exactly for free though, since you have to do the work of breaking the bookshelves. It's like you have a manufacturing job, you buy something, do something of value, then sell for a profit. I don't think it's a bug.