Altcoin Unit Bias Causing Misconceptions Among New Crypto Investors, Says Samson Mow
April 20, 2025 – Prominent Bitcoin maximalist and CEO of Jan3, Samson Mow, has issued a stark warning that the phenomenon of "unit bias" is severely impacting novice investors in the cryptocurrency market. In a post on social media platform X, Mow argued that once investors move beyond the surface allure of cheaper altcoins, it becomes evident that many of these assets may be significantly overvalued compared to Bitcoin.
Understanding Unit Bias
Unit bias refers to a psychological tendency among investors to prefer owning whole units of assets rather than fractional ones, regardless of their relative value. This cognitive bias leads many inexperienced investors to perceive lower-priced altcoins as better investment opportunities than Bitcoin, which trades at a higher price point. Mow expressed concern that this misunderstanding is "absolutely destroying" the financial well-being of newcomers in the crypto space.
“What happens if you remove unit bias from alts to calculate the equivalent of 1/21 million [the total supply of Bitcoin]?” Mow questioned in his post. To illustrate his point, he provided hypothetical price evaluations for several well-known altcoins:
- Ether (ETH): $9,200
- XRP (XRP): $5,800
- Solana (SOL): $3,400
These valuations represent increases of approximately 278,746%, 470%, and 2,328%, respectively, from their current market prices as of the time of publication, according to data from CoinMarketCap.
Altcoin Valuations Under Scrutiny
Mow’s analysis critiques the valuation frameworks used for altcoins, suggesting that their high total supply manipulates market perceptions and obscures true value. He noted, "No way these alts are worth that much,” emphasizing the disconnect between perceived and actual asset valuations that unit bias fosters.
Other proponents of Bitcoin, including an anonymous analyst known as Sunny Po, have also noted the prevalence of unit bias among less experienced investors. Po referred to unit bias as "a core foundational framework of the normie mind," suggesting that it drives the belief that "cheaper is better."
Bitcoin Dominance on the Rise
Mow’s comments come amid discussions about Bitcoin’s growing dominance in the market, which he believes is poised to rise even further. Bitcoin dominance, a metric that reflects Bitcoin’s share of the total cryptocurrency market capitalization, is currently sitting at 63.69%, according to TradingView. This marks a 9.11% increase over the past six months, surpassing previous expectations set by analysts who predicted dominance would peak around 60% by late 2024. Historically, fluctuations in Bitcoin’s dominance have often indicated the start of "altcoin season," a period when investments flow away from Bitcoin into other digital assets in search of higher returns. However, Mow’s assertions suggest that the dominance trend may continue upward instead of shifting toward altcoins as many anticipate.
Conclusion
Samson Mow’s critique of unit bias opens up a dialogue about the psychological factors affecting cryptocurrency investment decisions, particularly among newcomers. As the cryptocurrency space continues to evolve, understanding the impact of cognitive biases on market behavior will be crucial for both novice and seasoned investors alike. With Bitcoin’s current market performance, Mow’s suggestions may prompt investors to reevaluate their strategies and the fundamental value of altcoins in comparison to Bitcoin.
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