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<p>[QUOTE="halfcent1793, post: 7832448, member: 86853"]Graphs like these don't really mean that much. That huge drop from '08-'18, where it looks like coin values fall off a cliff, actually is less than 23%. Not insignificant, but about what the auction house takes on top of your bid.</p><p><br /></p><p>Plotting an incomplete Y-axis like this makes for a very misleading report. A lot of people call it a "gee-whiz" graph because it magnifies small differences. </p><p><br /></p><p>Another aspect of these price/time graphs is that price is too often presented on a linear scale, whereas it should be presented on a log scale. If coin A increases from $1 to $10, it increases 10X. If coin B increases from $1000 to $10,000, it also increases 10X. You may think "big deal" if your $1 coin goes to $10, but WOW if your $1000 coin goes to $10,000, but the change is the same. It also seems worse if a $10,000 goes down to $1000 than if a $10 coin goes down to $1, but if you spend equal amounts on the A and B coins, you'll do equally well (or badly).</p><p><br /></p><p>Here is a graph I did a few years ago that illustrates this.[/QUOTE]</p><p><br /></p>
[QUOTE="halfcent1793, post: 7832448, member: 86853"]Graphs like these don't really mean that much. That huge drop from '08-'18, where it looks like coin values fall off a cliff, actually is less than 23%. Not insignificant, but about what the auction house takes on top of your bid. Plotting an incomplete Y-axis like this makes for a very misleading report. A lot of people call it a "gee-whiz" graph because it magnifies small differences. Another aspect of these price/time graphs is that price is too often presented on a linear scale, whereas it should be presented on a log scale. If coin A increases from $1 to $10, it increases 10X. If coin B increases from $1000 to $10,000, it also increases 10X. You may think "big deal" if your $1 coin goes to $10, but WOW if your $1000 coin goes to $10,000, but the change is the same. It also seems worse if a $10,000 goes down to $1000 than if a $10 coin goes down to $1, but if you spend equal amounts on the A and B coins, you'll do equally well (or badly). Here is a graph I did a few years ago that illustrates this.[/QUOTE]
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