The debate surrounding the value of altcoins has been reignited by statements from Samson Mow, CEO of JAN3, who questions common perceptions of cryptocurrency pricing.
The Issue of Unit Bias
Samson Mow argued that a phenomenon known as 'unit bias' distorts the true value of altcoins. This bias occurs when investors perceive altcoins as more accessible due to their low unit prices, ignoring the market capitalization.
Altcoin Valuations Relative to Bitcoin
Mow illustrated that using market capitalizations of altcoins like Ethereum, XRP, and Solana and recalculating them based on Bitcoin's capped supply of 21 million reveals values much higher than current prices. For instance, Ethereum is speculated to be worth $9,200 under an equal distribution model.
Standardizing Cryptocurrency Valuations
Mow proposed using the term 'Finney' to denote one twenty-first millionth of any capped-supply asset, which would help improve cross-asset comparisons and reduce market perception biases.
Samson Mow's remarks raise important questions about the correct valuation of altcoins and their market capitalization in the context of Bitcoin. This calls for a deeper analysis within the crypto community.
