Bitcoin Forum

The Pareto Principle says that, for most cases, roughly 80% of the effects result from 20% of the factors. Nowadays, there are those who say that this ratio has changed from 90% to 10%. Does this rule apply to bitcoin?

So 80% of Bitcoin belongs to 20% of miners. Is this expression true to you?

Probably.


"Belongs to"? No.

More likely both of these:

• 80% of the bitcoins are mined by 20% of the miners.
• 80% of the bitcoins belong to 20% of the users

In general I wrote this because I think that big mine pools have more bitcoins.



I think so, it would be more accurate to express it in this way.

a lot of coins will be going straight into other hands to pay bills. you can't speculate on future values when you have millions to pay in hardware, staff, premises and power.

Not necessarily correct. However we can safely assume that some pool operators have a fair share of coins, mostly due to being early adopters.

Very true but I think it's even less, the Pareto principle regarding Bitcoin should be 95% of all bitcoins belongs to 5% of Bitcoin miners because th newyork times reported that just three (3) Chinese companies own 70%of the entire Bitcoin network and so those making significant gains in mining are just a few.

The process of concentrating large amounts of bitcoin into the hands of a few people or a few companies is normal(unfortunately,and this might become a problem for bitcoin in the future).
It`s like the process of concentrating the capital into a few big corporations and killing the small competitors.
This is the nature of capitalism and bitcoin can`t be different.

Maybe. It might be even very likely, but what difference does it make? It is probably the same with fiat now. Money is power and if Bitcoin will become a leading currency, then the people with power and money will find ways to get Bitcoin in considerably amounts so they can stay in power. I am sure that as the wealth changes to other people the power changes too, but not for long, as the old guys know the game and will slowly take their power back. Not all and also not all of the new elite will let them take it, but we will not see a huge change.

Kinda. But mine is different. I call it the 90/10 principle.
10% belongs to the miners who dictates the amount of bitcoins that could circulate in the entire community.
90% belongs to us users that dictates how the circulation must go.

Yes, that could be a big problem. In the capitalist system, an elite class of 1% owns the vast majority of money.
Those who have money are the ones who have the strength. But because normal currencies are under state control, even if the amount of money goes down, the new ones can be printed.
But the number of bitcoins that can be removed is limited. Once all the bitcoins have been dig, no new bitcoins will be produced anymore. In such an environment, those who own 99% of bitcoin will have everything.