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Author Topic: what is logarithmic price scales  (Read 78 times)
cafter (OP)
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March 01, 2023, 02:27:33 PM
 #1

many times researching about crypto and watching charts there is an option of like logarithmic scale or linear scale ,
and logarithmic regression band, etc logarithmics.
can you please tell me what is that
and what is difference between simple and logarithmic
HeRetiK
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March 02, 2023, 04:16:51 PM
Last edit: March 05, 2023, 09:34:47 AM by HeRetiK
Merited by hugeblack (4), Welsh (1), ABCbits (1)
 #2

To expand on what ETFbitcoin already said: Logarithmic scales make it easier to evaluate growth in terms of percentage.

A steady growth of, e.g. +10% a year, looks like a straight line on a log scale but hyperbolic exponential on a linear scale. If you look at a short time frame this may be barely noticeable, but if you look at decades of data (or deal with a much higher yield, as is the case with Bitcoin) the log scale will remain readable while the linear scale would just seem to curve into infinity.
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March 05, 2023, 12:49:34 AM
 #3

A steady growth of, e.g. +10% a year, looks like a straight line on a log scale but hyperbolic exponential on a linear scale. If you look at a short time frame this may be barely noticeable, but if you look at decades of data (or deal with a much higher yield, as is the case with Bitcoin) the log scale will remain readable while the linear scale would just seem to curve into infinity.

FTFY

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March 05, 2023, 09:32:55 AM
 #4

A steady growth of, e.g. +10% a year, looks like a straight line on a log scale but hyperbolic exponential on a linear scale. If you look at a short time frame this may be barely noticeable, but if you look at decades of data (or deal with a much higher yield, as is the case with Bitcoin) the log scale will remain readable while the linear scale would just seem to curve into infinity.

FTFY

Growth that reaches a singularity at a finite point.

When talking about Bitcoin, this seems about right to me  Tongue

No, but you're right though of course. Thanks for pointing it out, fixed it in my post above!

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