Samson Mow critiques the inflated valuations of altcoins citing unit bias, suggesting that if this bias is removed, their true prices would still be far below Bitcoin’s. He proposes naming a unit for one twenty-one millionth of any cryptocurrency to aid understanding and valuation assessment, inviting community feedback on his suggestion.
Samson Mow, a prominent figure in the cryptocurrency community, argues that even if alternative cryptocurrencies (altcoins) had Bitcoin’s limited supply, their prices would still not reach the heights of Bitcoin. He credits this misconception to a psychological phenomenon known as unit bias, where the large supply of coins makes them appear more affordable compared to Bitcoin, which has a price over £70,000 per coin.
Mow contends that if this unit bias were eliminated, altcoins like XRP could theoretically be valued at $5,800, SOL at $3,400, and ETH at $9,200. Mow derives these figures by dividing each altcoin’s market capitalisation by Bitcoin’s total supply of 21 million coins. For instance, with ETH’s $193 billion market cap, this calculation yields a price of $9,200 per coin.
Mow highlights that many investors fall for this unit bias, mistakenly perceiving the purchase of $2 XRP as a better deal than Bitcoin at a higher price. He asserts this confusion hinders the understanding of each cryptocurrency’s true value, diminishing the chance for informed investment decisions.
Expanding on his analysis, Mow proposed naming the unit that corresponds to one twenty-one millionth of any cryptocurrency. While recognising that currently, 10 Satoshis are termed a Finney, he suggests this name could be suited to define this unit across Bitcoin, leading altcoins, and even gold. For example, he suggests 1 Finney of Bitcoin could equate to $85,000, while a Finney of Ethereum might be valued at $9,200, and a Finney of gold around $1,000,000. Mow invited feedback from the cryptocurrency community on his naming proposal.
