Topic: Bitcoin Unit Bias - page 2. (Read 240 times)
Been advocating for this in the past; imagine all the money saved from buying shitcoins that are so-called "cheap" like XRP and Cardano. Unfortunately this is one of those things that will end up getting scrapped simply because most people are totally fine with the current unit denomination.
A colleague who has been not a bitcoin fan for as long as I have known him finally told me his reason why he would never buy bitcoin. Simple, he thinks he missed the bitcoin train because he is or was unable to own 1 bitcoin when it was less than $5k. For him, bitcoin is just too expensive to buy at $20k plus. This is a type of cognitive bias known unit bias. Unit bias1 according to this article is “the concept that buyers are more enticed to buy a whole unit of a given currency instead of a fractional quantity.” Many people think they need to buy a whole bitcoin. My colleague's thinking pattern was already distorted as a result of the emotional significance he has attached to owning 1 Bitcoin. He felt discouraged from investing in Bitcoin because he wouldn't be able afford to buy a whole Bitcoin and that is why he jumped into bitcoin alternatives where he can afford to own 10 of those coins. Anyways one thing, I made helped him achieve was to reframe the way he thinks about bitcoin. I told him he doesn't need to own 1 bitcoin as that is not the smallest unit of bitcoin. I encouraged him to consider buying the smaller denominations/units of bitcoin called satoshis. He could own 1000 or 10, 0000 satoshis which is still bitcoin. 10,000 or 20000 satoshis will end up being a substantial amount. It helped him see that the train hasn't left him like he thought it did. Have you ever encountered a person with unit bias in bitcoin and how did you help them reframe their thoughts?
Please note that I didn't convince him to buy bitcoin. I only helped to reframe his thinking about the way he thought about owning 1 bitcoin.
1 https://www.nasdaq.com/articles/a-look-at-bitcoin-and-biases%3A-price-2021-10-01
Please note that I didn't convince him to buy bitcoin. I only helped to reframe his thinking about the way he thought about owning 1 bitcoin.
1 https://www.nasdaq.com/articles/a-look-at-bitcoin-and-biases%3A-price-2021-10-01
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