Samson Mow Critiques Altcoin Valuations Against Bitcoin’s Supply Model

Samson Mow argues that Ethereum, XRP, and Solana are overvalued compared to Bitcoin’s fixed supply of 21 million coins. By calculating the equivalent values of these altcoins against Bitcoin, he finds significantly lower figures, predicting that Bitcoin’s dominance will increase as a result. Mow attributes the mispricing to “unit bias,” which confuses new investors about asset values.

Samson Mow, entrepreneur and CEO of JAN3, has analysed the value of Ethereum (ETH), XRP (XRP), and Solana (SOL), arguing that these altcoins are overvalued when compared to Bitcoin’s (BTC) fixed supply model. His analysis counters what he calls “unit bias,” pointing out that an individual can purchase one twenty-one millionth of the Bitcoin supply for around $85,000.

Mow’s method involves calculating the equivalent values of altcoins by dividing their market capitalisations by Bitcoin’s capped supply of 21 million coins. This approach reveals that the adjusted price for Ethereum would be $9,200, for XRP it would be $5,800, and for Solana, $3,400 — all significantly lower than current market values.

Concluding his analysis, Mow expressed doubt about the high valuations of these altcoins, predicting that Bitcoin dominance will increase as a result of these discrepancies. According to TradingView, Bitcoin dominance currently stands at 63.71% and has increased by 14.48% over the last year.

Mow’s calculations suggest that, for Ethereum, with a market cap of approximately $193 billion, the equivalent price per twenty-one millionth is $9,200. He argued that purchasing a fraction of Ethereum could lead one to consider buying 0.11 BTC as a more advantageous option. Mow lamented that unit bias might misinform new investors about asset values.

Over recent periods, Bitcoin’s dominance has shown considerable growth, including increases of 9.15% over the last six months and 3.76% in the past month. This analysis highlights the established differences between Bitcoin’s capped supply and the varying models of altcoins, including Ethereum’s deflationary strategy following EIP-1559, XRP’s pre-mined supply of 100 billion tokens, and Solana’s inflationary model with decreasing inflation rates.