Cryptocurrencies and Power Laws

Vanguard AUM

There are dozens, maybe hundreds or thousands of cryptocurrencies out there. However, there are only a handful of cryptocurrencies that anyone who has some knowledge of cryptocurrencies has ever heard of: Bitcoin (BTC) Ethereum (ETH) Litecoin (LTC) Bitcoin Cash Ripple It’s likely to stay this way forever because of something called a power law.. Power laws work in a “winner take all” sort of way, rewarding the winner in a kingdom, phylum, class, order, family, genus, species of whatever with the vast majority of the rewards… Cryptocurrencies are no different.…

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