The "Unit Bias" Drives Many Investors to Favor Cheap Altcoins at the Expense of Bitcoin

In the crypto world, the “unit bias” drives many investors to favor cheap altcoins at the expense of Bitcoin.

In the ever-spinning carousel of crypto, a "unit bias" drives many investors to favor cheap altcoins over Bitcoin to an extent. But according to Samson Mow, this misperception creates a distorted view of investment decisions and fuels an illusion of value. As a result, BTC dominance could yet explode far beyond forecasts!

Unit Bias Destroys Newcomers In Crypto

Samson Mow, CEO of Jan3, penned a note on April 19, 2025, where he claims that “unit bias is destroying new crypto investors.”

According to the well-known crypto figure, this psychological error leads beginners to prefer a cheap altcoin over a fraction of Bitcoin. A phenomenon observed by behavioral economists. Indeed, individuals prefer to own a whole unit even if it has less value.

Result: altcoins with a high total supply appear more attractive than Bitcoin at over $84,000. For example, they would prefer 100 units of an altcoin at $500 over 0.5 BTC at $84,000, even though the total value is the same.

Overvalued Altcoins Without Unit Bias?

To better measure the impact of the unit bias, Mow proposes an interesting exercise: “What would happen if we evaluated each altcoin as if its total supply were that of Bitcoin, i.e., 21 million?”

In this scenario, Ethereum would be worth $9,200 (vs. $20 at present), XRP would climb to $5,800 (vs. $13), and Solana would reach $3,400 (vs. $150). Respective increases of +278,000%, +470%, and +2,300%.

But how is such a price shift possible with the same market cap? Because the magic of the unit bias also fools investors into thinking that these altcoins are undervalued.

Thus, Mow accuses the majority of altcoin projects of exploiting the unit bias to mask their true valuation. “Most create a huge supply to sow confusion. They know that people will prefer a coin with a higher price per unit, even if the total value is lower.”

Bitcoin Dominance Could Climb Higher

Finally, Samson Mow believes that Bitcoin's dominance in the crypto market is far from having reached its peak.

Currently at 63.69%, this metric already exceeds analysts' forecasts who projected a ceiling of 60% by the end of 2024. But for the Jan3 CEO, this level could still increase further, strengthening Bitcoin's position against altcoins.

During periods of high dominance, money flows into Bitcoin, delaying the emergence of a new altseason. But as Bitcoin's dominance decreases, it signals a shift in market sentiment and a potential influx of capital into altcoins.

As such, a period of high BTC dominance could still persist, especially as long as the unit bias continues to deceive those who invest in the new Countertops.