Here are two price charts of bitcoin, in the last five years.
(Click to enlarge)
Both are the exact same data, but the chart on the left has a linear y-axis, while the chart on the right is on a log scale.
Log scales show all percentage gains equally, as the scale grows exponentially. 1, 10, 100, 1000, 10,000… 100,000?
Log scales are useful when looking at longer term charts as they smooth out the effect of compounding.
10,000 to 20,000 is the same as 10 to 20, but when both moves are in the same chart on a linear scale, the former dwarfs the latter.
Bitcoin enthusiasts therefore regularly use log charts as they are less visually jarring to reasonable people.
The chart on the left looks like a bubble.
On the right, not so much.
Anyway, with bitcoin surpassing $50k (or £35k), we put together an impromptu crypto discussion for you.
Joined by two men far more enlightened in the “dark side of the force” than I, it was a very enlightening discussion, with my gentle scepticism and Boaz Shoshan’s alt-expertise meeting Sam Volkering’s unmatched depth of knowledge and insight on the broader crypto world.
We discuss whether bitcoin is a threat to governments and will be regulated, or an opportunity for those with the foresight to embrace this incredible new technology.
We look at the short-term bull run, and wonder where our focus should be as investors.
And guided by Boaz and Sam (and definitely not me!), we delved into the hottest, most exciting, emerging corners of the digital asset market.
Just over six months after our Southbank Crypto Summit, where I interviewed some of the biggest names in crypto, this is a great catch-up on where we’ve come since then, and where we’re going. Just click below to listen.
All the best,
Editor, UK Uncensored
PS If you’re already keen on bitcoin, and want to know more, you need to see what Sam Volkering, our long-time crypto expert, has been saying lately.