Bitcoin price is on the ropes after failing to make it above $30,000. The market is still fearful after a year long downtrend and 78% drop.
However, as the old adage states, “when in doubt, zoom out.” In this latest look at BTCUSD, one curved median is all the reassurance needed to know that the top cryptocurrency is still on the right track long term.
Zooming Out To Look At Long-Term Logarithmic Growth
Assets of any kind are measured in growth of price and time. Growth can be exponential or logarithmic.
Exponential growth is fast and substantial, commonly associated with compound interest in finance. Growth begins slow, then sharply increases. The stock market in linear scale is a good example of what exponential growth looks like.
Exponential growth in the Dow Jones Industrial Average | DJI on TradingView.com
Meanwhile, Bitcoin growth is logarithmic, which begins fast then slowly decreases over time. Wikipedia says that in computer algorithms, log growth is a “very desirable” indication of efficiency.
In an example from MatcMath, log growth is explained via how children learn words faster at a younger age. Eventually they learn words at a much slower rate as they reach adulthood.
The chart below shows exactly how Bitcoin price climbed rapidly to start, and is now experiencing less and less…
