Crypto Newbies Beware: The Unit Bias Trap That’s Making Your Altcoins Look Like Bargains!

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It is a truth universally acknowledged, that a novice in possession of a crypto wallet, must be in want of a proper understanding of Bitcoin dominance.

Mr. Samson Mow, the illustrious CEO of Jan3, has taken it upon himself to assure us that the supremacy of Bitcoin hath not yet expended its upward course, much to the dismay of those who fawn over altcoins merely because they appear more affordable — like a tempting second-hand bonnet one might buy simply because it costs less than a famed designer’s.

“Unit bias is absolutely destroying the uninitiated,” declared Mr. Mow on the 19th of April in a missive shared on the platform known as X. This phenomenon, a most curious psychological tick, inclines people of limited experience to fancy that purchasing an entire altcoin, rather than a mere fragment of a Bitcoin, is a veritable bargain. How delightfully misguided one can be!

The Curious Case of Altcoin Valuations, or, What If the Playing Field Were Truly Level?

“Consider,” quoth Mr. Mow, “you may acquire one twenty-one millionth of the entire Bitcoin supply for the modest sum of approximately £85,000.” One must then ask, with a keen eyebrow arched, what would ensue should we expunge this whimsical unit bias from our calculations?

Should such arithmetic be undertaken without prejudice, Ether (ETH), that once vaunted token, would be flung up to a princely £9,200; XRP would ascend to £5,800; and Solana would reach an eye-watering £3,400. These figures represent stupendous increases — roughly 278,746%, 470%, and 2,328% respectively — from their meagre market prices at this very moment, based on the esteemed data from CoinMarketCap.

“No manner of reason could these altcoins possess value so extravagant,” Mr. Mow pronounced, much like a judge dismissing an overblown suit.

Crypto graph

In a most enigmatic aside, the anonymous Bitcoin enthusiast known only as Sunny Po remarked on the 12th of January that “Unit bias is a core foundational framework of the normie mind. ‘Cheaper better.’” One might almost hear the sigh of exasperation from the well-informed.

Mr. Mow opines further that “most” altcoins cunningly exploit this very bias by inflating their total supply, thus confounding the poor investor who “can’t figure out what they’re buying” — a tactic most befitting a mischievous highwayman of old.

By his diligent reckonings, the dominance of Bitcoin is destined for loftier heights still. Such dominance, that most reliable barometer by which traders divine the imminent peaks and troughs of the market, sits presently at a stately 63.66%, as chronicled by the wise scribes at TradingView.

Historically, a decline in Bitcoin’s dominance hath heralded the commencement of the celebrated “altcoin season,” much like the social season’s opening ball, when capital flows from the reputable Bitcoin towards these flashing, if somewhat fickle, newcomers in search of more thrilling returns.

Bitcoin dominance chart

Yet, many a sage analyst had predicted Bitcoin dominance to plateau around 60% by late 2024, anticipating that the altcoin revelry would soon thereafter ensue.

Of particular note was Mr. Benjamin Cowen, founder of Into The Cryptoverse, who confidently stated in August 2024, “I don’t think it is going back up to 70%; my target for Bitcoin dominance has been 60%.” One must admire his conviction — though, as with all things crypto, one might as well wager on the color of Lady Whistledown’s next bonnet!

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2025-04-20 10:07