Recently, I’ve been thinking about a very interesting phenomenon: why do some people become more and more successful, while others face increasing difficulties? This is actually the so-called Matthew Effect, a very important concept in sociology.

This theory was proposed by American sociologist Robert Merton in 1968. The name comes from a phrase in the Gospel of Matthew in the New Testament — those who have will be given more; and those who lack will have even that taken away. It sounds a bit cruel, but it indeed reflects many phenomena in reality.

You see, the crypto market is also like this. Large exchanges, well-known projects, influential KOLs, all continuously accumulate attention, funds, and opportunities. Meanwhile, smaller projects and novice investors find it very hard to access the same resources. This is the Matthew Effect at work.

Actually, the ancient Chinese text, the Tao Te Ching, also discusses a similar principle — the Way of Heaven reduces excess to fill shortages, but human ways are opposite — reducing shortages to maintain excess. This is the same phenomenon as the Matthew Effect, just from a different perspective.

In simple terms, the Matthew Effect is the logic of the winner-takes-all. Once you gain an advantage, it becomes easier to continue gaining advantages. This exists in investing, entrepreneurship, and even daily life. Once you understand this effect, you can better see why some opportunities are much easier for certain people to seize.