John-Paul Thorbjornsen is a crypto and blockchain enthusiast, and he is also the co-founder of CanYa. CanYa is operating as a global marketplace of peer-peer services, and functions to accelerate the adoption of cryptocurrencies. Recently John-Paul Thorbjornsen revealed the results of a study he conducted. He found out that Bitcoin has over eighty percent dominance and control over the market.
It is to be noted that by dominance he did not mean market capitalization. What he means to tell us is that market capitalization is not a standard to measure the value of crypto in the market with. This also seems reasonable because many crypto analysts have come out saying that market capitalization is not very trust-worthy merit as it can be manipulated very easily.
In order to explain and support his statement regarding Bitcoin’s dominance, John-Paul Thorbjornsen used the Pareto principle. This principle basically states that roughly eighty percent of the conclusions are derived from twenty percent of the causes. This is to testify that if a cryptocurrency has twenty percent contribution in the market, then it can be the that controls eight percent of the market.
John-Paul Thorbjornsen analyzed almost a hundred digital currencies using the market capitalization, and the results seemed to say that the market capitalization is artificial because the trading volumes of the currencies did not compare with each other that well.
John-Paul Thorbjornsen then came out with his own new standard to measure crypto on. He called it ‘volume-weighted cap. He concluded that the control of Bitcoin over the crypto market as shown by data aggregators is completely false. This data is not valid because it does not involve liquidity rates. According to him, this reveals that almost fifty-five percent of the market control of Bitcoin is down-played.
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