It's easy to fall for the shiny object syndrome, isn't it? Especially when it comes to investing. The appeal of a “cheap” crypto, the kind you can own thousands, even millions, of is extremely seductive. It’s a better use of your tax dollars. Jan3 CEO Samson Mow raised a key point in their shared op-ed. This ‘cheap thrills’ mentality, exacerbated by unit bias, is causing real damage to new crypto investors. They’re going after fool’s gold and missing the real gold in the process.

Chasing Pennies, Missing Dollars?

I've seen it happen firsthand. Just a few years ago, a friend—let’s call him Antoine—shared with me the story of his investment in a still-little-known altcoin. My head is full of them!” he shouted, his eyes shining. He’d already invested a good portion of his life savings into it, drawn in by the promise of a low dollar cost average. He believed he was sitting on a goldmine. A few months later? The coin had crashed and burned. Antoine lost almost everything.

This isn't just Antoine's story. It’s a familiar story in the crypto space. New investors, often with limited capital, are drawn to altcoins trading at fractions of a cent or a few dollars. The logic is simple: "If this coin hits just $1, I'll be rich!" Most importantly, they don’t understand the all-important difference between price and value.

It’s that same irrational one unit owner preference, even if that “thing” is something as fundamentally valueless as a parking space. We see it everywhere. Consumers will choose to purchase ten $1 lottery tickets instead of one $10 ticket, even when the probability is identical. It’s a psychological thing, it just feels like you have a better shot.

Crypto is no different. This issue is compounded by the fact that altcoins on purpose do this by issuing an extremely high total supply. This results in an artificially low price per unit, making the price tag look much more affordable and giving it potential for exponential growth under the right circumstances. When that supply is massive, it dilutes the value and therefore makes significant price appreciation incredibly difficult if not virtually impossible.

Mow also shreds the valuation of these altcoins. Even his theoretical math is startling. They illustrate what ETH, XRP, and SOL would be worth if they were valued the same as Bitcoin on the basis of their total supply. If we fully normalize the price against total supply with the same metrics, ETH would actually be worth $9,200. At the same time, XRP would be worth $5,800 and Solana (SOL) $3,400. It makes you think, doesn't it?

Bitcoin's "Boring" Brilliance

Why do so many people treat Bitcoin like it's too “expensive”? Because it's not cheap. At the end of the day, you can’t procure millions of units for a couple dollars. It requires a more significant investment. That's precisely the point. Bitcoin’s scarcity, its proven history, and its decentralized nature are what make it valuable. It's the digital gold standard.

Think of it like buying a house. You wouldn’t pick a bad ten shacks in the sticks over a good apartment in the middle of town, right? Even if the shacks combined cost less. The apartment’s security, predictability, and better chance of appreciation. Bitcoin is the crack-shack apartment in the crypto world.

It's easy to dismiss Bitcoin as "boring." But altcoins offer crisper returns, more immediate gains, and a more intoxicating sense of adventure. But these heart pounding experiences often come at a deadly cost. Bitcoin Dominance is climbing, now 63.69%. This increase is more than double what was previously projected and indicates that investors are waking up to the distinction between real value and a lot of hot air.

Escape the 'Get Rich Quick' Trap

Here's the hard truth: there are no shortcuts to wealth. Not ever – and particularly not in the speculative, volatile world of cryptocurrency. As the old adage goes, if it looks too good to be true, it likely is.

Therefore, how should we behave to escape unscathed from the clutches of unit bias and “cheap thrills”?

  • Educate Yourself. Don't just follow the hype. Understand the fundamentals of cryptocurrency, blockchain technology, and tokenomics.
  • Focus on Market Cap. Pay attention to the market capitalization of a cryptocurrency, not just its price per unit. Market cap gives you a better sense of the overall value and potential for growth.
  • Diversify Responsibly. Don't put all your eggs in one basket, especially not a basket filled with unproven altcoins.
  • Bitcoin First. Consider building a foundation with Bitcoin before venturing into the riskier world of altcoins.
  • Seek Professional Advice. Talk to a qualified financial advisor who understands cryptocurrency.

The crypto market itself is teeming with projects trying to take advantage of investors’ lack of knowledge and gullibility. With an emphasis on education and responsible investing you’ll be well on your way to successfully navigating the crypto landscape. Protect your long-term goals from the tempting, expensive trap of cheap thrills. Stay hopeful, remain inquiring, and always check your sources! A little bit of common sense is going to save you a lot in this business. Take a cue from Antoine’s tale, and don’t let unit bias confuse your thinking.