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- In a recent analysis, Samson Mow, CEO of Bitcoin-centric firm JAN3, scrutinized XRP’s valuation by comparing it to Bitcoin’s supply metrics.
- These comments come on the heels of his prediction that Bitcoin could reach $1 million by 2025, a surge he attributes to what he called the omega candles.
Debates surrounding the value and utility of different digital assets continue to stir intense discussions among investors and crypto experts. In the past, analysts have become accustomed to downplaying Bitcoin’s potential, and hitting its $109k mark is proof that this asset has had strong rebounds and has the potential to reach the 150,000 level.
Samson Mow, the CEO of JAN3, a Bitcoin-focused infrastructure provider, reignited the debate on April 19, with a candid analysis of altcoins and their perceived worth compared to Bitcoin. In an X post, Mow outlined what he termed the distorted perception of altcoin value in an analogy involving Bitcoin’s finite supply of 21 million coins.
He wrote, “You can buy one twenty-first millionth of the BTC supply for ~$85,000. What happens if you remove unit bias from alts to calculate the equivalent 1/21 million? ETH: $9,200, XRP: $5,800, SOL: $3,400. No way these alts are worth that much.” In other words, if XRP’s total market value were condensed into just 21 million units, matching Bitcoin’s scarce supply, each coin would theoretically be priced at around $5,800.
Mow calculated these figures by dividing each altcoin’s total market cap by 21 million, the fixed supply of Bitcoin, to simulate a direct, unit-for-unit comparison. He argued that this method exposes the overvaluation of altcoins, suggesting that they appear cheaper than they are due to “unit bias.”
Unit Bias: A Psychological Trap
Unit bias refers to the cognitive tendency of investors, especially beginners, to prefer whole units of cheaper coins rather than fractional shares of more expensive ones like Bitcoin. Mow criticized this behavior, saying: “Most alts take advantage of unit bias by utilizing a very high supply, so people can’t figure out what they’re buying. XRP is only $2, but Bitcoin is too expensive at $85,000!. Unit bias is absolutely destroying the uninitiated.”
This, according to Mow, misleads new investors into believing they’re getting more value for their money with altcoins, when in reality, they’re buying less intrinsic value. Mow’s post also came with a prediction: Bitcoin dominance is set to rise significantly. “Alts are overvalued. Bitcoin is undervalued. Act accordingly,” Mow concluded.
The debate over XRP’s value proposition continues, especially in light of recent developments, such as the U.S. Court of Appeals approving a joint request from Ripple Labs and the Securities and Exchange Commission (SEC) to pause the ongoing appeal for 60 days. As CNF highlighted earlier, this pause is intended to allow both parties time to engage in settlement negotiations
Today, the asset was on an upward ascent, hitting a high of 88,404 and currently stabilizing at around $87,269, while XRP has seen a marginal increase of 0.24% to trade at $2.08.
