Unit bias in #crypto investments refers to the psychological phenomenon where investors prefer owning complete units of an asset, such as a whole Bitcoin, over fractional shares.
This bias can deter potential investors, especially when the price of a whole #BTC is high, as it may make them feel dissuaded from purchasing these assets if they cannot afford a full coin.
As a result, investors may be more inclined to buy #Cryptocurrencies with lower prices, even though the lower price point is not necessarily an indicator that the crypto's price has room to rise.
VanEck advisor Gabor Gurbacs has highlighted this bias and suggested that Bitcoin exchange-traded funds (#etf ) are a solution to this challenge, as they can make Bitcoin exposure more affordable and accessible by allowing fractional ownership.