Core Question

There is this psychological phenomenon that draws our brains to bigger numbers, but how does that affect crypto and  what we actually hold?

Example

We all know about low value tokens, and we have had this appeal to have them (maybe not you, but I have). We feel like we just want to trade what we already have for those tokens. 

For example, say we have a token XXX worth $0.0001. That is microscopic. So, we get curious and go to the swap feature and see how many tokens we could get if we traded for say $20. For this token in particular, that would equal  a mind-boggling 200,000 tokens. So, even though you could get .2 SOL (which is worth about $21 as of the time of writing this) or these tokens, we feel this urge to pick the tokens just because you get way more. 

How does that impact us?

When we see these low valued tokens, we want to get those. So, what happens is we start to inadvertently start to convert our other crypto into this token because you get more. It also impacts us by having a significant weight to our decision. 

For example. I am comparing 2 tokens that will carry the bulk of my wealth. They have the same market cap, same network stats, same everything. Except for one critical difference. Token A has a max supply of 50 million tokens, however, Token B has 5 billion. But since they have same marketcap, it takes 100 Token Bs to get 1 Token A. That means we get more inclined to pick Token B, because 100>1. This "weight" can also apply to different cryptos. For example, you could compare Token A from above but has a slightly better liquidity and stats. However, the tiny extras don't really overcome our want to get Token B.

This is also why rewards sites keep you balance in coins or points. Say the peg is 1,000 per $1. Now, suddenly, even 10 coins (1 cent) feels like a great win, even though it is just a penny. Same principle, unit count matters and has a real effect.

This does not apply to everyone

While this whole more units thing applies to a majority of people, it is important to remember that not everyone feels this way. To some, even though you may have .001 BTC over hundred of thousands of a low value token, the idea that the underlying crypto is valuable may justify and even bring you joy to having such small numbers.

Also, I am not a psychologist. So, this doesn't go into depth why (that would be a full science paper), just what it is and how it impacts us. As always, if you want to invest into small value tokens, do you research.

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