Mow Evaluates XRP Value as $5,800 Based on Bitcoin Supply Model

Samson Mow, CEO of JAN3, critiques XRP by assessing its theoretical cost under Bitcoin’s supply limits, revealing that XRP could be valued at $5,800 per share. He explains the misleading concept of unit bias, where investors misjudge asset value based on price per coin rather than market cap. Mow continues to advocate for Bitcoin as a superior investment, suggesting altcoins, including XRP, are often overvalued.

Samson Mow, CEO of JAN3 and advocate for Bitcoin, has critiqued altcoins, specifically XRP, suggesting that if XRP possessed a supply equivalent to Bitcoin’s 21 million tokens, it would cost around $5,800 per coin. This analysis aims to illuminate what he refers to as “unit bias,” where investors perceive a lower-priced asset as more attractive without factoring in the total market capitalization and supply capacity.

Mow highlighted the psychological trap that leads investors to favour assets like Shiba Inu, currently priced at $0.000012, over higher-priced alternatives like XRP, which trades around $2. He questioned whether the lower price of Shiba Inu truly offers better value than XRP, stressing the importance of market cap in determining real value rather than mere unit price.

In his calculations, Mow found XRP’s market cap of approximately $122 billion, leading to a theoretical valuation of $5,800 per Bitcoin-sized unit. He articulated that XRP should not seem as inexpensive at just a few dollars when considering its extensive circulating supply and compared it to Bitcoin, which trades at approximately $85,000, thereby reinforcing his viewpoint that many low-priced altcoins are, in fact, overvalued.

Extending his analysis, Mow applied similar calculations to other cryptocurrencies like Ethereum and Solana. Ethereum, with a market cap of $193 billion, would equate to about $9,200 per Bitcoin-sized share, while Solana, valued at $71 billion, would translate to $3,400. His findings elucidate that high-supply coins such as XRP, ETH, and SOL may be inherently inflated in value.

Mow concluded by recommending investors opt for Bitcoin instead of spending $5,800 on a Bitcoin-equivalent share of XRP, as Bitcoin presents superior value and stability due to its capped supply and decentralisation. He asserts that many altcoins manipulate their perceived value through substantial supply numbers, which appeal to new investors.

His ongoing criticism of altcoins, including XRP, aligns with his advocacy for Bitcoin as the only cryptocurrency deserving of long-term investment. Mow’s previous commentary regarding altcoins has consistently highlighted their volatility and questionable valuations, further diminishing his view of their long-term viability compared to Bitcoin.

Despite Mow’s reservations, some XRP supporters remain optimistic about its future price potential. Forecasts noting potential spikes to $100 have circulated, yet Mow emphasizes that such predictions imply a staggering increase in Bitcoin’s value to $4 million to achieve equivalent returns.

Disclaimer: This article serves purely for informational purposes and does not constitute financial advice. The expressions laid out herein are reflective of the author’s opinions, and readers are encouraged to engage in comprehensive research prior to making investment decisions. The Crypto Basic bears no responsibility for any resulting financial losses.