the pareto principle would only be applied to your choices. We may very well boil down to less than 100 coins but your choices would be made within that 100. Nobody will hold on to the eliminated coins. Those 100 coins will represent the entire market cap, and whatever random selections you make theres a 20% chance you selected one of the 20 coins that hold 80% of the market cap.
The pareto principal is also a social phenomena. Human beings instinctively behave in a manner that favors pareto distributions. The cryptocurrency industry can be viewed as a living organism thats driven by the emotions of many investors, a superorganism that respirates and grows in response to our confidence and fear. Our dna evolved in alongside the success of the herd mentality, and cryptocurrencies will be an extention of what drives us on a primal level, a new level in the fractal pattern of nature itself. We will naturally rally to form a majority/minority relationship with each other, whether were sitting on opposite ends of trading terminals or villagers in a tribe.
Topic: 80% of altcoins will fail. Optimum strategy: picking 3 coins. No more. No less. - page 2. (Read 253 times)
May 07, 2018, 11:57:15 PM
May 07, 2018, 10:55:29 PM
there's at least 1000+ blockchain products available, I'm gonna hazard a guess that many are redundant to each other. And some dont even make sense. Dogecoin.
The Pareto Distribution is a pervasive phenomena observed in nature, and it describes the 80 rule where 80% of the women have sex with 20% of men. 80% of wealth belongs to 20% of the population. 80% of your results come from 20% of your activities
So my strategy for building a crypto profile is to put all my eggs into 3 baskets. My reasoning is if I spread out my investments over 10 different cryptos, 80% of them will fail, and I'm left with 20% of my principal. If I concentrate my investments into 3 highly regarded coins and at 2 of them fail (80% of 3 rounded) I'm left with 33% of my principal.
You might say what if all 3 were duds? You're likely to pick 3 duds and be left with nothing, at least when you choose 10 one of them is bound to be the right choice. That's a combinatorial way of looking at things, like pulling out colored marbles from a bag. But cryptocurrencies are volatile and future events might alter the outcome. What you first pulled out as a red marble might change into a green marble. If the marbles change colors randomly the marbles you pick are identical to the marbles in the bag, and you'll always end up with the same distribution of colors. So what I'm trying to say is that I could pick 10 cryptos and all of them have an 80% of failing. I could also pick 3 cryptos and all of them have 80% of failing.
Why 3? Just because. I like the number 3 because 3 is a good number. I like how curvy the 3 is and I like the way 3 split 80/20 rounds out to a 1/2 split (50% ratio, 33% of principal), whereas 2 split 80/20 rounds out to 0/2 (0% ratio, 0% principal). Going higher than 3 worsens your outcomes, 4 split 80/20 is 1/3 (33% ratio, 25% principal). 5 split 80/20 is 1/4 (25% ratio, 20% principal). And of course 10 split 80/20 is 2/8 (25% ratio). Why do I round? because either a marble is or isn't a color. It can't be one portion red and another portion green. Either it's a 1 or a 0, and the sum of the split numbers must equal the original quantity.
it goes without saying you can improve the odds in your favor by gathering good data and doing thorough research
or am I a crazy person?
The Pareto Distribution is a pervasive phenomena observed in nature, and it describes the 80 rule where 80% of the women have sex with 20% of men. 80% of wealth belongs to 20% of the population. 80% of your results come from 20% of your activities
So my strategy for building a crypto profile is to put all my eggs into 3 baskets. My reasoning is if I spread out my investments over 10 different cryptos, 80% of them will fail, and I'm left with 20% of my principal. If I concentrate my investments into 3 highly regarded coins and at 2 of them fail (80% of 3 rounded) I'm left with 33% of my principal.
You might say what if all 3 were duds? You're likely to pick 3 duds and be left with nothing, at least when you choose 10 one of them is bound to be the right choice. That's a combinatorial way of looking at things, like pulling out colored marbles from a bag. But cryptocurrencies are volatile and future events might alter the outcome. What you first pulled out as a red marble might change into a green marble. If the marbles change colors randomly the marbles you pick are identical to the marbles in the bag, and you'll always end up with the same distribution of colors. So what I'm trying to say is that I could pick 10 cryptos and all of them have an 80% of failing. I could also pick 3 cryptos and all of them have 80% of failing.
Why 3? Just because. I like the number 3 because 3 is a good number. I like how curvy the 3 is and I like the way 3 split 80/20 rounds out to a 1/2 split (50% ratio, 33% of principal), whereas 2 split 80/20 rounds out to 0/2 (0% ratio, 0% principal). Going higher than 3 worsens your outcomes, 4 split 80/20 is 1/3 (33% ratio, 25% principal). 5 split 80/20 is 1/4 (25% ratio, 20% principal). And of course 10 split 80/20 is 2/8 (25% ratio). Why do I round? because either a marble is or isn't a color. It can't be one portion red and another portion green. Either it's a 1 or a 0, and the sum of the split numbers must equal the original quantity.
it goes without saying you can improve the odds in your favor by gathering good data and doing thorough research
or am I a crazy person?
You're thinking that the pareto principle applies to crypto and that's a really long shot, remember that 20% of the coins will be almost 500 coins will survive this madness, I don't think this number can be so high. I'm thinking more like a 100 so be careful and DYOR
May 07, 2018, 10:13:18 PM
you need some ICX in there bby
May 07, 2018, 10:07:14 PM
So I suggest you buy NEO,QTUM,ACT.
These three tokens are the tokens of the underlying technology, so they are worth holding for a long time.
These three tokens are the tokens of the underlying technology, so they are worth holding for a long time.
May 07, 2018, 10:01:37 PM
picasso was considered crazy, but geniuses are rarely appreciated during their time
now im not sayin' i be a genius, but crazy might be just what we need in these troubling times
now im not sayin' i be a genius, but crazy might be just what we need in these troubling times
May 07, 2018, 10:01:01 PM
Well, that's your opinion. Most people here are risk taker including me, if i'm going to invest on ICO i will pick like 10 coins to hodl risky but surely. on that way i have a good chance to get back my capital.
May 07, 2018, 09:39:00 PM
You are a crazy person. Sure, most altcoins fail but you can still gain for some of them, i'm talking about doing bounties rather than participating in ICOs. I think this is better than participating since you really won't have to use your cash to earn. Therefore, there's low risk of loss. But you don't really know if the bounty you're into would be successful or not, here comes the picking of more than 3 coins enter. If you participate on more bounties, you may possibly outweigh the risk and gain more.
May 07, 2018, 09:13:56 PM
bump
May 07, 2018, 03:43:50 PM
there's at least 1000+ blockchain products available, I'm gonna hazard a guess that many are redundant to each other. And some dont even make sense. Dogecoin.
The Pareto Distribution is a pervasive phenomena observed in nature, and it describes the 80/20 rule where 80% of the women have sex with 20% of men. 80% of wealth belongs to 20% of the population. 80% of your results come from 20% of your activities
So my strategy for building a crypto portfolio is to put all my eggs into 3 baskets. My reasoning is if I spread out my investments over 10 different cryptos, 80% of them will fail, and I'm left with 20% of my principal. If I concentrate my investments into 3 highly regarded coins and 2 of them fail (80% of 3 rounded) I'm left with 33% of my principal.
You might say what if all 3 were duds? You're likely to pick 3 duds and be left with nothing, at least when you choose 10 one of them is bound to be the right choice. That's a combinatoric way of looking at things, like pulling out colored marbles from a bag. But cryptocurrencies are volatile and future events might alter the outcome. What you first pulled out as a red marble might change into a green marble. If the marbles change colors randomly the marbles you pick are identical to the marbles in the bag, and you'll always end up with the same distribution of colors. So what I'm trying to say is that I could pick 10 cryptos and all of them have an 80% chance of failing. I could also pick 3 cryptos and all of them have 80% chance of failing.
Why 3? Just because. I like the number 3 because 3 is a good number. I like how curvy the 3 is and I like the way 3 split 80/20 rounds out to a 1/2 split (50% ratio, 33% of principal), whereas 2 split 80/20 rounds out to 0/2 (0% ratio, 0% principal). Going higher than 3 worsens your outcomes, 4 split 80/20 is 1/3 (33% ratio, 25% principal). 5 split 80/20 is 1/4 (25% ratio, 20% principal). And of course 10 split 80/20 is 2/8 (25% ratio). Why do I round? because either a marble is or isn't a color. It can't be one portion red and another portion green. Either it's a 1 or a 0, and the sum of the split numbers must equal the original quantity.
it goes without saying you can improve the odds in your favor by gathering good data and doing thorough research
or am I a crazy person?
The Pareto Distribution is a pervasive phenomena observed in nature, and it describes the 80/20 rule where 80% of the women have sex with 20% of men. 80% of wealth belongs to 20% of the population. 80% of your results come from 20% of your activities
So my strategy for building a crypto portfolio is to put all my eggs into 3 baskets. My reasoning is if I spread out my investments over 10 different cryptos, 80% of them will fail, and I'm left with 20% of my principal. If I concentrate my investments into 3 highly regarded coins and 2 of them fail (80% of 3 rounded) I'm left with 33% of my principal.
You might say what if all 3 were duds? You're likely to pick 3 duds and be left with nothing, at least when you choose 10 one of them is bound to be the right choice. That's a combinatoric way of looking at things, like pulling out colored marbles from a bag. But cryptocurrencies are volatile and future events might alter the outcome. What you first pulled out as a red marble might change into a green marble. If the marbles change colors randomly the marbles you pick are identical to the marbles in the bag, and you'll always end up with the same distribution of colors. So what I'm trying to say is that I could pick 10 cryptos and all of them have an 80% chance of failing. I could also pick 3 cryptos and all of them have 80% chance of failing.
Why 3? Just because. I like the number 3 because 3 is a good number. I like how curvy the 3 is and I like the way 3 split 80/20 rounds out to a 1/2 split (50% ratio, 33% of principal), whereas 2 split 80/20 rounds out to 0/2 (0% ratio, 0% principal). Going higher than 3 worsens your outcomes, 4 split 80/20 is 1/3 (33% ratio, 25% principal). 5 split 80/20 is 1/4 (25% ratio, 20% principal). And of course 10 split 80/20 is 2/8 (25% ratio). Why do I round? because either a marble is or isn't a color. It can't be one portion red and another portion green. Either it's a 1 or a 0, and the sum of the split numbers must equal the original quantity.
it goes without saying you can improve the odds in your favor by gathering good data and doing thorough research
or am I a crazy person?
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