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Look at Bitcoin closing price on a log scale: http://bitcoincharts.com/charts/chart.png?width=940&m=mtgoxUSD&SubmitButton=Draw&r=360&i=&c=0&s=&e=&Prev=&Next=&t=

Look at Bitcoin closing price on a log scale: http://bitcoincharts.com/charts/chart.png?width=940&m=mtgoxUSD&SubmitButton=Draw&r=360&i=&c=0&s=&e=&Prev=&Next=&t=C&b=&a1=&m1=10&a2=&m2=25&x=0&i1=&i2=&i3=&i4=&v=0&cv=0&ps=0&l=1&p=0& http://bitcoincharts.com/charts/chart.png?width=940&m=mtgoxU... Not so scary anymore! From what I understand, people should be looking at this sort of data on a log scale.

leokun 13y ago
Why?
- oleganza 13y ago
  I think, because money as any other standard is always a network effect. Networks grow exponentially, in a self-reinforcing manner. Or they don't grow at all (when at a point of saturation).
- TomGullen 13y ago
  Take a look at this explanation: http://www.fool.com/foolfaq/foolfaqcharts.htm http://www.fool.com/foolfaq/foolfaqcharts.htm
  - leokun 13y ago
    Ah, that makes perfect sense. With a logarithmic chart, each change is seen in the context of the current value. Each change is not equal to every other change. When bitcoin is worth $1, and it goes up one more $1, that's a much bigger change than when at $300 it goes to $301 but to have the line the same length is kind of misleading.
WayneS 13y ago
I agree the log chart is the desired way to view the data because then a straight line is showing steady growth. But look at the chart you posted. I see a sharp uptick on a nice linear trend since July. Now go look at the rest of the chart and ask yourself what happened every time there was a sharp uptick? Hmmm I believe bitcoin will continue to grow, but I wouldn't tell people this is a good time to buy. Wait for the "correction" then buy.
- TomGullen 13y ago
  Every sharp uptick will have a corrective period because upticks have momentum. Now is a good a time to buy as any. No one knows if the correction is going to drop below the current price or not. So it really doesn't matter when you buy, especially so if you're holding for the long term.

leokun 13y ago

Why?

oleganza 13y ago
I think, because money as any other standard is always a network effect. Networks grow exponentially, in a self-reinforcing manner. Or they don't grow at all (when at a point of saturation).
TomGullen 13y ago
Take a look at this explanation: http://www.fool.com/foolfaq/foolfaqcharts.htm http://www.fool.com/foolfaq/foolfaqcharts.htm
- leokun 13y ago
  Ah, that makes perfect sense. With a logarithmic chart, each change is seen in the context of the current value. Each change is not equal to every other change. When bitcoin is worth $1, and it goes up one more $1, that's a much bigger change than when at $300 it goes to $301 but to have the line the same length is kind of misleading.

WayneS 13y ago

I agree the log chart is the desired way to view the data because then a straight line is showing steady growth. But look at the chart you posted. I see a sharp uptick on a nice linear trend since July. Now go look at the rest of the chart and ask yourself what happened every time there was a sharp uptick? Hmmm I believe bitcoin will continue to grow, but I wouldn't tell people this is a good time to buy. Wait for the "correction" then buy.

TomGullen 13y ago
Every sharp uptick will have a corrective period because upticks have momentum. Now is a good a time to buy as any. No one knows if the correction is going to drop below the current price or not. So it really doesn't matter when you buy, especially so if you're holding for the long term.