The Matthew Effect: The law by which the rich get richer

Matthew Effect is a sociological principle describing the phenomenon of cumulative advantage. It means that those who already have advantages continue to accumulate them, while the laggards fall further behind. In other words, it’s the law that “the winner takes all.”

Origin of the Effect

The Matthew Effect was first formulated by American sociologist Robert Merton in 1968. The name comes from a biblical context — the Gospel of Matthew, which contains the parable of talents, expressed as: “For whoever has will be given more, and they will have an abundance; whoever does not have, even what they have will be taken from them.”

The same idea is reflected in ancient Chinese philosophy — in the “Tao Te Ching,” it is said that the way of heaven involves reducing excess and replenishing deficiency, while the way of man works in the opposite direction.

The Effect of the Matthew Effect in the Modern World

The Matthew Effect manifests not only in science but also in economics, politics, and technology. In the cryptocurrency space, this is especially noticeable: large projects attract more investments, liquidity, and attention, while young alternative projects struggle for recognition.

As of March 2026, the leaders of the cryptocurrency market continue to strengthen their positions. Bitcoin is trading at $70,780 with a daily change of -0.24%, Ethereum is at $2,160 with a change of -0.06%, and BNB is trading at $643.30 with a daily change of -0.38%. These data illustrate how leading assets maintain their dominance in the market.

Why the Matthew Effect is Inevitable

The Matthew Effect demonstrates a fundamental principle: initial advantage creates conditions for further growth. This applies not only to finances but also to fame, influence, and power. Understanding this effect helps explain why inequality in society tends to increase.