Pareto Principle on Bitcoin and Bitgesell
The Pareto Principle is attributed to the Italian polymath Vilfredo Pareto. In 1896, Pareto observed in his garden that 80% of the peas came from 20% of the peapods. Later, in his studies, he concluded that 80% of the land in Italy was owned by 20% of the population, a pattern also observed in other countries with similar or nearly identical figures.
While the 80/20 proportion is not a strict mathematical rule or economic principle, it suggests a tendency where 80% of the effects result from 20% of the causes.
This trend is evident across various fields and domains. For example, in most companies, 20% of regular customers account for 80% of the consumption of goods or services. In the workplace, it is also observed that 80% of production comes from 20% of the employees. The principle teaches that the majority of the outputs/outcomes are created by a vital few things.
The same principle applies to fiat money, risk assets or limited-supply assets like Bitcoin or Bitgesell. In this proportion, 80% of the world's gold or money is in the hands of 20% of the people. Similarly, it can be observed that 20% of Bitcoin and Bitgesell holders own 80% of the digital coins.
Consequently, you should consider allocating part of your reserves to Bitcoin (2009) and the super-deflationary Bitgesell (2020). An 80% allocation to Bitcoin and 20% to Bitgesell could be an excellent strategy for portfolio diversification, given that Bitgesell's growth potential is expected to exceed all expectations in the next 5-10 years.
As of August 10, 2024, at 11:00 GMT, the price of one unit of Bitgesell is $0.043 USD, while Bitcoin's price is $60,918 USD. Both have a maximum supply of 21 million coins. Notably, Bitgesell burns 900 sats (0.000009 BGL) with every transaction, whereas Bitcoin burns none.
Choose wisely. When in doubt, choose both.
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