The "don't buy Bitcoin because the unit price of other cryptocurrencies look cheaper" Trap

TLDR: also check the supply/ supply type

The influx of new retail investors to the crypto space recently has been amazing..however I've seen some are still getting confused or put off buy bitcoin because one bitcoin at almost $50k looks expensive... compared to other cryptocurrencies that have a unit price sub $5

So I know this is a Bitcoin sub and people will expect there to be some bias towards the promotion of bitcoin... however what I would say as someone that does not advocate only holding bitcoin.. there are reasons to insure it forms the back bone of a portfolio and not fall in to the phycological bull trap of thinking a cheap unit price equals value.

After looking at the unit price of a crypto, the other major factors that should be checked is supply circulating and end supply, if supply is fix/ unfixed, rate production/ distribution etc.

When you do you'll see that bitcoin actually has among the lowest fixed supplies of many crypto's.. hence it's higher unit price.

One website that highlights this well is https://cryptoli.st/lists/fixed-supply

In fact, historically on a phycological level humans have often placed value and desirability in the in those things that are rare and scarce... particularly those with the most wealth.

If it doesn't exist already, I think there may be cryptographically secure physical representations of digital wealth.. something like instead of a gold necklace you can have electronic jewelry that can be loaded with crypto and the more value it has the prettier the cryptographic pattern, colour etc is.

Anyways...

I think in the future it may become more realistic and commercially beneficial for major exchanges to start valuing Bitcoin in Satoshi's.

Again another good website that highlights this is:

https://awebanalysis.com/en/convert-satoshi-to-dollar-usd/

For example, currently

1 Satoshi = $0.00049005 or ₿0.00000001

When you think about Bitcoin this way... physiologically Bitcoin starts to appear cheap.

The main takeaway is that for 12 years Bitcoin has traditionally lead and moved the pack. It's 12 years old and has only lost 60% dominance against ALTs.. traditionally when investors pile in to ALTs they are often new investors drawn in to market by bull rallies that have generated mainstream hype. Often they are trying to find the next bitcoin... however often this is when the market crashes and wypes them out.

That's not to say that people can't make larger gains in ALTs.. however like pennystocks things start to become more of a gamble than an investment.

Also like the wolf of wallstreet.. there are many people out to sell you those pennystocks with the main aim being to enrich themselves.

Also like pennystocks, ALTs aren't very resilient in market crashes so take care out there.