Samson Mow’s Insights on Psychological Biases in Cryptocurrency Investment

Bitcoin analyst Samson Mow has recently issued a significant warning to would-be cryptocurrency investors, highlighting a prevalent psychological bias that is misleading many newcomers to the crypto landscape. As the CEO of Jan3, Mow has delved into the intricacies of investor behavior, particularly pointing out that a phenomenon known as “unit bias” is causing new entrants to the crypto market to make misguided investment choices. This bias often leads individuals to focus on the price of cryptocurrencies, erroneously equating lower prices with better value, rather than understanding the actual worth that each coin represents.

Investors Confused by Price Perception of ‘Cheaper’ Altcoins

Mow explains that inexperienced investors typically fall into the trap of thinking that buying cheaper-priced altcoins presents a more attractive investment option compared to Bitcoin, which is often viewed as too expensive. According to his observations, “Most alts exploit unit bias by having a very high supply, so people can’t tell what they’re buying,” as he mentioned in a post on X.

To clarify this misconception, Mow provided an illustrative comparison: “XRP is *only* $2 but Bitcoin is too pricey at $85,000!” This disparity results from the vast difference in the total supply of most cryptocurrencies compared to Bitcoin’s fixed supply of just 21 million coins. The psychological impact of unit bias leads many new investors to desire whole coins of these lower-priced alternatives, instead of considering the fractional ownership of higher-priced established cryptocurrencies like Bitcoin.

Most alts take advantage of unit bias by utilizing a very high supply, so people can’t figure out what they’re buying. “XRP is *only* $2 but Bitcoin is too expensive at $85,000!” Unit bias is absolutely destroying the uninitiated.#Bitcoin only.

— Samson Mow (@Excellion) April 19, 2025

Mow emphasizes that this psychological bias poses a serious threat to novice investors who are often unaware of the critical differences in market capitalization between cryptocurrencies, leading to detrimental investment decisions based solely on skewed price perception.

Analyzing Cryptocurrency Prices Through Equal Supply Perspectives

In his further examination of this issue, Mow constructed a thought experiment to illustrate the potential implications of equal supply distribution among cryptocurrencies. He speculated that if Ethereum were to operate under the same constraints as Bitcoin’s limited supply, each Ethereum coin would need to be valued at approximately $9,200—a staggering increase of 278,740% from its current trading price. Similarly, XRP, if constrained to 21 million coins, would need to rise to about $5,800 per coin, and Solana’s price would skyrocket by 2,325% to around $3,400 per coin.

Those numbers are calculated by taking the market cap of the alts and dividing by 21 million, thus framing their supply in terms of Bitcoin supply. ETH: $193B market cap / 21M = $9,200. Instead of buying that one twenty-one millionth of Etherium, you could buy just 0.11 BTC.

— Samson Mow (@Excellion) April 19, 2025

He cautions that, if investors tried to remove unit bias while comparing the true value of altcoins to Bitcoin, they would realize: “There is no way that these altcoins are worth that much.” This, Mow argues, should prompt investors to reassess their strategies and perceptions when navigating the cryptocurrency market.

Bitcoin Dominance Surpassing Expectations

Meanwhile, Bitcoin’s dominance in the broader cryptocurrency market continues to outstrip prior projections, currently hovering around 60%, according to TradingView data. “Bitcoin dominance” measures Bitcoin’s market capitalization concerning all other cryptocurrencies, serving as a vital indicator of its overall market position and health. Mow’s analysis of unit bias leads him to predict that “Bitcoin dominance is going to go much higher,” contrary to earlier expectations that foresaw a shift of capital away from Bitcoin to other coins in late 2024 and early 2025.

As the market dynamics shift, it becomes increasingly apparent that understanding the complexities of cryptocurrency investments is crucial for new entrants. For those grappling with these concepts, **AI legalese decoder** can be an invaluable tool. This service simplifies complex legal terminology and investment terms, providing clarity for new investors. By using AI to decode the legal and financial language around cryptocurrency, individuals can make informed decisions, minimize their risks, and understand the underlying factors that drive cryptocurrency values, thus avoiding costly missteps due to psychological biases. As the cryptocurrency landscape evolves, such tools become essential for safeguarding investments and enhancing market literacy.

Featured image from Capital.com, chart from TradingView