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Crypto Exec Call Sala Out Altcoin: A danger to new investors

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Bitcoin analyst Samson Mow warns that psychological biases are deceiving new cryptocurrency investors. The CEO of Jan3 recently pointed out that most of the new participants of cryptography markets are being poorly informed so economists call “unit bias”, which leads them to make incorrect investment decisions based on the price of coins instead of the real value.

Investors cheated by ‘cheapest’ Altcoins

Inexperienced investors tend to confuse altcoins to cheaper as good bargains against BitcoinMow says. “Most of the ALTS exploit the unit’s bias by having a very high supply, so people cannot say what they are buying,” Mow tweeted in X.

He stressed this confusion with an illustration: “XRP is * only * $ 2 but Bitcoin is too expensive at $ 85,000!” This Price illusion It occurs because most other cryptocurrencies have general supplies so large that the 21 million hard currencies.

Psychological involvement makes most fresh buyers want to maintain complete coins of less cryptocurrencies instead of fractional amounts of higher price coins.

The bias of the unit, said Mow, is devastating the great inexperienced time, which implies that ignorance is damaging rookie investors who are not aware of the difference in market capitalization and the individual price of currency.

The comparison of prices for its equal offer shows different results

Mow built a mental experiment to illustrate how much more extreme Cryptocurrency prices It would be if everyone shared Bitcoin’s limited supply.

According to his estimates, if Ethereum only had 21 million currencies (compared to its much greater supply), each currency would have to cost approximately $ 9,200, an increase of 278,740% of its current price. Similarly, XRP would rise 470% to $ 5,800 per currency, and Solana would rise 2,325% to $ 3,400.

“You can buy 21 million BTC supplies for ~ $ 85,000,” Mow said. “What happens if you eliminate the ALTS unit bias to find the equivalent of 1/21 million?” His conclusion was obvious: “There is no way that these alternative They are worth so much. “

XRP market cap currently at $119 billion. Chart: TradingView.com

Bitcoin domain higher than the projected

The Bitcoin portion of the General Cryptocurrency Market has challenged expectations when reaching around 60%, as indicated by TrainingView data. This indicator, called “Bitcoin domain” Quantifies Bitcoin market capitalization in relation to all other combined cryptocurrencies.

After recent trends in the markets and their unit’s bias analysis, Mow now predicts that “Bitcoin’s domain will be much higher” than where he is at this time or even where the previous expectations were.

This contrasts with previous predictions that indicated that capital would move from Bitcoin to other cryptocurrencies at the end of 2024 and early 2025.

Outstanding Image of Capital.com, TrainingView Graph

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