Unit Bias Is Killing Crypto Newbies, Warns Samson Mow

Why Unit Bias May Be Tricking You into Buying the Wrong Crypto

The cryptocurrency world is flooded with thousands of coins and for many new investors, the price tag alone is what catches their attention. But according to Bitcoin advocate and Jan3 CEO Samson Mow, that mindset might be leading newcomers straight into costly traps.

On April 19, Mow took to X (formerly Twitter) to call out what he describes as a major flaw in the way new crypto investors evaluate coins unit bias. This psychological phenomenon convinces people that owning one full unit of a cheap coin (like XRP or Solana) is better than holding a fraction of a more valuable one, like Bitcoin.

• “Unit bias is absolutely destroying the uninitiated,” Mow wrote, pointing to how this bias skews perception and valuations of altcoins.What Is Unit Bias in Crypto?

In behavioral economics, unit bias refers to our natural preference for whole numbers. In crypto, this means people often think buying 1,000 units of a coin priced at $1 is better than buying 0.01 of a coin worth $85,000 even if the latter is fundamentally stronger.

This bias is frequently exploited by altcoin projects that launch with massive supplies, giving the illusion of affordability.

•  “Most altcoins inflate their supply so people can’t figure out what they’re actually buying,” said Mow.

A Level Playing Field: What Altcoins Would Be Worth If They Had Bitcoin’s Supply

To prove his point, Mow did some math. He recalculated the prices of popular altcoins like Ethereum (ETH), XRP, and Solana (SOL) assuming they had Bitcoin’s fixed supply of 21 million coins.

Here’s what those prices would look like:

• Ethereum (ETH): $9,200

• XRP: $5,800

• Solana (SOL): $3,400

These numbers would represent gains of 278,746%, 470%, and 2,328% respectively from their actual prices at the time.

•  “No way these alts are worth that much,” Mow concluded, suggesting their current appeal is largely psychological, not fundamental.

Bitcoin Dominance Rising And It’s Not Done Yet

Mow’s criticism of altcoin valuations comes at a time when Bitcoin dominance is on the rise. At the time of writing, it stands at 63.66%, according to TradingView far above what many analysts expected just months ago.

Back in August 2024, crypto strategist Benjamin Cowen, founder of Into The Cryptoverse, predicted Bitcoin dominance would stall around 60% and eventually give way to an altcoin season. But Mow disagrees. He believes Bitcoin still has more room to run and that dominance could push even higher.

• “Bitcoin dominance is going so much higher,” Mow said in his April 19 post.

Altcoin Season on Hold?

Historically, altcoin season when investors shift from Bitcoin to altcoins in search of bigger gains follows a peak in Bitcoin dominance. But Mow suggests that current market dynamics are still in Bitcoin’s favor.

Over the past six months, Bitcoin dominance has climbed 9.11%, and there's no immediate sign of reversal.

According to Investopedia, altcoins generally tend to rally when Bitcoin stabilizes or drops. However, Bitcoin’s current upward trajectory and institutional adoption continue to draw in the big money.

In this climate, altcoins with massive supplies and flashy marketing may appear attractive but that’s exactly where unit bias comes in.

Why Unit Bias Persists

Bitcoin proponents like Mow aren’t the only ones calling this out. Another Bitcoin supporter known as Sunny Po summed it up in a viral January 12 post:

•  “Unit bias is a core foundational framework of the normie mind. ‘Cheaper better.’”

It’s an easy trap to fall into especially for new investors entering the market without understanding supply metrics or market capitalization. A $0.50 coin can feel like a better “deal” than a $85,000 coin but that perception often doesn’t reflect real value.

Altcoins and the Illusion of Affordability

Altcoins like Dogecoin, Shiba Inu, and even established tokens like Ripple’s XRP tend to issue billions or even trillions of coins. This gives them an attractive “low price per coin,” which hooks new investors who dream of massive upside.

However, as many have learned the hard way, a low price doesn't necessarily mean high potential. In fact, many of these coins are subject to high inflation, lack real utility, or are concentrated in the hands of a few large holders (aka whales).

Are We in the Early Stages of a Mega Bitcoin Cycle?

Mow’s comments tap into a broader belief held by many Bitcoin maximalists: That the market is still undervaluing Bitcoin relative to everything else.

Given its fixed supply, increasing institutional demand, and growing status as a macro hedge, Bitcoin may still be in the early stages of a multi-year supercycle.

This theory is bolstered by rising interest from institutional players like BlackRock and Fidelity, plus recent spot Bitcoin ETF approvals and growing sovereign interest from countries like El Salvador and Bhutan.

Final Thoughts

Samson Mow’s fiery takedown of unit bias serves as a reality check for new crypto investors. The next time you’re tempted by a “cheap” altcoin, ask yourself: Is it actually undervalued or are you just falling for the unit bias trap?

As Bitcoin dominance continues to rise and the narrative shifts back to fundamentals, Mow’s message is clear: Bitcoin remains king and the math supports it.

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