never understood why price chartists use a logarithmic scale, it not representative in a linear fashion and tends to misreprezent and skew the data...
A logarithmic scale plot makes a lot more sense. This is especially the case if you watch something on a long time scale and when the value is changeing not just a bit but a factor.
...we have 2 time a doubleing of the value. Where as on the linear plot you will see and exponential curve on the log scale plot you see a straight line. And you see that the factor 2 is always refelected as a distance of 0.3 independent of the current VALUE
This is valid for any factor (precent) not just the factor 2. Same factor same distance on the log scale
...Lets say you have a fix ammount to invest and you know the marked behaves rather exponentioal which is likely the case for markets where people think and trade precentage based. What you will observe are line patterns. (in TA you often have this channels)...
Independent of the current good value you can by extrapolating the line easily figure out when your investment is expected to have grown to the factor that you desire given the trend holds.
https://blockchain.info/en/charts/n-transactionswith the setting AllTime and linear you will not see the trend that easy.
If however you switch to AllTime and logarithmic scale you see straight line going from Jul 2012 onward.
It's simple to extrapolate when the blocksize will be full with the logarithmic scale. It's a lot harder with linear scale.
Thankyou for the explanation, not had it described like that before. So basically the more recent price info shows a doubling better(good for short term traders) and is accentuated more and the older data tends to be flattened out (last years price not important anyway)
I suppose its only the last few months that is relevent, and like you say if the price is doubling say every year, the chart will show growth as a straight line, in effect this is a straightening of the price direction, economists only care growth and this is a better growth chart projection as it scales (Another log example is Moore's Law as linear would not show the trend too well either)
I always think it's cringeable when they say that since you can't create a proprietary blockchain that has any reasonable level of hashing power without spending more money than it transports. I don't know if these people have a clue what they're talking about.
