Bitcoin analyst Samson Mow warns that psychological biases are deceiving new cryptocurrency investors. The CEO of January 3 recently noted that most of the new participants in the cryptographic markets are ill -informed by what economists call “a unit bias”, which led them to make bad investment decisions according to the price of the documents instead of real value.
Investors misled by “cheaper” altcoins
Inexperienced investors tend to confuse cheaper altcoins as good good deals against Bitcoin, explains Mow. “Most alts exploit the bias of the unit by having a very high supply, so that people cannot say what they buy,” Tweeted Mow on X.
He underlined this confusion with an illustration: “XRP is only * $ 2 but Bitcoin is too expensive at $ 85,000!” This price illusion occurs because most other cryptocurrencies have much larger global supplies than 21 million coins capped with Bitcoin.
Most alts take advantage of the unit bias using a very high supply, so that people cannot understand what they buy.
“XRP is only * $ 2 but Bitcoin is too expensive at $ 85,000!”
The unitary bias absolutely destroys the uninitiated.#Bitcoin only.
– Samson Mow (@Excellion) April 19, 2025
Psychological involvement brings most buyers of new buyers to contain full parts of lower cryptocurrencies rather than fractional quantities of more expensive parts.
The unitary bias, said Mow, is devastating the high time inexperienced, which implies that ignorance damages beginner investors who are not aware of the difference in market capitalization and the individual price of the parts.
Price comparison by an equal offer shows different results
Mow has built a thought experience to illustrate how extreme cryptocurrency prices would all be limited Bitcoin prices.
According to its estimates, if Ethereum had only 21 million parts (compared to its much higher supply), each room should cost around $ 9,200 – an increase of 278,740% of its current price. Similarly, XRP would increase by $ 470% per room, and Solana would increase by $ 3,400 by $ 2,325%.
These figures are calculated by taking the market capitalization of the Alts and dividing by 21 million, thus supervising their supply in terms of Bitcoin supply.
ETH: stock market cup of $ 193 billion / 21M = $ 9,200
Instead of buying around twenty -one millionth of Etherium, you could buy only 0.11 BTC.
– Samson Mow (@Excellion) April 19, 2025
“You can buy a 21 million BTC offer for ~ $ 85,000,” said MOW. “What happens if you delete unit biases from the alts to find the equivalent of 1/21 million?” His conclusion was obvious: “There is no way that these altcoins are worth as much.”
XRP market cap currently at $119 billion. Chart: TradingView.com
Bitcoin dominance greater than that projected
The Bitcoin part of the global cryptocurrency market has challenged expectations by reaching around 60%, as indicated by tradingView data. This indicator, called “Bitcoin dominance”, quantifies the market capitalization of Bitcoin compared to all other combined cryptocurrencies.
After recent trends on the markets and its analysis of unit biases, Mow now plans that “the domination of Bitcoin will go much higher” than where it is at the moment or even when previous expectations were.
This contrasts with the previous predictions which indicate that capital was going to leave Bitcoin towards other cryptocurrencies at the end of 2024 and at the beginning of 2025.
Capital.com star image, tradingView graphic
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