What is unit bias and why you should avoid it 🧮
👉 Unit bias is a psychological phenomenon where investors perceive the value of an investment based on the unit price rather than its overall market capitalization
People often ignore the market capitalization of assets when choosing which coin to buy, but market capitalization is the only thing that matters.
You've probably heard things like "Shiba Inu will pump to $1" which is what people who have no idea how to calculate market value say. In reality, this coin would be valued at $589 trillion if its price rose to $1 🤪
The sad reality of irrational psychology is that it is much easier to imagine something worth $0.01 increasing in value a hundred times than something worth $10,000 🤷♀️
It is also much more satisfying to own a million coins, hoping the price of a token will rise to $1 than to buy 1/100th of a whole bitcoin.
But in reality, those who can't use a calculator are destined to part with their money sooner or later 💸
