Applying the Pareto Principle to blockchain technology and Crypto, it is said that 80% of the value of crypto will exist in 20% of the coins. What are the coins that would be in that 20%? The world’s fiat currencies get controlled centrally by their respective government’s central banks. They follow a centralized approach to printing money and a controlled distribution strategy. Cryptocurrencies are not under the control of central authorities to create and distribute money. They should get better money distribution theoretically. In practice, rather than central banks, a handful of powerful miners control the Bitcoin distribution. The cryptocurrency value is derived from its utility and distribution. The more users who believe in what they can use the cryptocurrency for, the higher the value it has.
mCoin – The Cryptocurrency for All? – The 80/20 Rule
mCoin is termed as the cryptocurrency for all, including those not having the Internet. The mCoin team realized the significance of utility value and its widespread distribution. It seeks to restore the 80/20 rule for mCoin distribution, focusing on distributing 20% of the mCoins supply at creation to 80% of the users. This will attain widespread ownership to develop utility value for mCoin.
ONEm launched the mCoin “Pseudo-Mining” idea. This notion signifies distributing 20% of the mCoin supply to the masses. “Pseudo-Mining” refers to the “proof-of-work” principle but abridges the work to make it reachable by anyone. Unlike Bitcoin mining entailing significant effort and resources, “Pseudo-Mining” necessitates SMS use only. “Pseudo-Mining” involves being in the ONEm ecosystem using services having a positive social and economic effect in the respective developing markets. For instance, participants in distant rural areas may get internet content and services through SMS. Participants earn points after using sponsored ONEm services. They can change their mCoin earned points they to add to the mCoin supply in the market.
mCoin “Pseudo-Mining” lets all mobile users be a part of mCoin circulation. All that is required is a mobile phone and access to the ONEm ecosystem either through a connected local mobile operator, or a code. mCoin establishes the 80/20 rule of cryptocurrency distribution.
Optimizing Blockchain Investment with 80/20 Rule
There are more than 1600 altcoins to choose from!
The Pareto 80/20 rule helps investors separate altcoins from shitcoins.
With the growth of the crypto market, the need for investors to determine what is good and what is bad has become paramount. Crypto is no more for a Geek, it has today become a vital part of what will take society and technology a step further.
The issue of Bitcoin today is that its Cryptographic challenges are so hard to decode, Mining pools were shaped with precise hardware which defines the centralization of the network. 89% of the computing power is possessed and controlled by the 8 biggest mining pools.
Tokens were promoted during the ICO frenzy and are hosted on a Turing Complete Blockchain (like Ethereum or NEO). They might have a very particular usage that entails complex rules based on the use case. The Blockchain world has so far witnessed more than 1600 altcoins.
The question for blockchain marketers and speculators, is how can they separate the good from the bad. From more than 1600 existing altcoins, what are those few 100 that are going to survive and thrive?
Investors should comprehend that at least 3 parameters are supporting the long-term value of a crypto-asset. These are:
- Its supply rule;
- The fundamental economy supporting it;
- Its Velocity.
- It’s marketing;
- Its daily volume transactions;
- The momentary value perception one community may have.
So, the general problem in the crypto-markets is the public. They trust the latter rather than the former. This might be explained by the fact that the existing actors (speculators & scammers) are just seeking a quick buck with no interest in the basic value of Blockchain technology, transparency, and how it is affecting the world’s currencies.
Pareto’s law signifies that 80% of crypto-assets don’t have any future. Investors thus, must analyze which coins to hold to, and determine the technologies they can bet on.