# 1 Bitcoin Is Not 1 Ether Is Not 1 EOS

A common fallacy in the crypto community is to compare prices of cryptocurrencies in non standardized units.

Comparing the price of 1 Bitcoin to 1 Ether to 1 EOS is not accurate. The unit does not take into account the total supply of the cryptocurrency. Issuers of new cryptocurrencies know this. It is common for ICO issuers to have a supply far higher than of bitcoins so that the price per unit of the new cryptocurrency is lower than that of a bitcoin. The assumption is that users would feel that since the price per unit is low, there is a lot of upside possible.

As an example, below is the total supply of ether and EOS compared to bitcoin:
Bitcoin: 21 million
Ether: ~ 100 million
EOS: 900 million

Price of Bitcoin, Ether and EOS:
1 Bitcoin: \$8,200
1 Ether: \$480
1 EOS: \$8.50

From the above prices, a subconscious assumption one makes is that Bitcoin is priced at 16x of Ether and 1,000x of EOS.

However, a more accurate price comparison would be if the units are standardized. What if all other cryptocurrency units were standardized to compare with 1 bitcoin as below:

1 Ether = 21,000,000 (total Bitcoins) / 100,000,000 (total Ether) = 0.21 b-Ether (Bitcoin standardized Ether). Or 1 b-Ether = 4.76 Ether.

1 EOS = 21,000,000 (total Bitcoins) / 900,000,000 (total EOS) = 0.023 b-EOS (Bitcoin standardized EOS). Or 1 b-EOS = 42.86 EOS.

So if prices are mentioned as per Bitcoin standardized unit, they will be:
1 Bitcoin: \$8,200
1 b-Ether: \$2,285 (\$480 * 4.76 Ether)
1 b-EOS: \$364 (\$8.50 * 42.86 EOS)

Factoring in the total supply of the cryptocurrency in the price, price of a bitcoin is 4x of Ether and only 20x of EOS.

The implementation of Bitcoin standardized units would have some challenges like in case of cryptocurrencies in which the supply is not fixed, or coins can be destroyed and so on. However, these are minor issues and can be ironed out.

I hope that someday, Bitcoin standardized unit becomes the general way by websites, wallets, exchanges and the entire community to mention prices.

Written by

## Sandeep Goenka

#### co-founder of Zebpay, bitcoin and crypto exchange.

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