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Topic: what is logarithmic price scales (Read 102 times)

legendary
Activity: 3150
Merit: 2185
Playgram - The Telegram Casino
March 05, 2023, 04:32:55 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!

legendary
Activity: 4522
Merit: 3426
March 04, 2023, 07:49:34 PM
#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
legendary
Activity: 3150
Merit: 2185
Playgram - The Telegram Casino
March 02, 2023, 11:16:51 AM
#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.
full member
Activity: 448
Merit: 225
March 01, 2023, 09:27:33 AM
#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
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