Exponential Growth: a short thread with pictures
Physicist Albert Allen Bartlett said, referring to overpopulation, "The greatest shortcoming of the human race is our inability to understand the exponential function."
It's also the shortcoming of a #crypto trader atm.
But have a look at it on Log scale. Log is an exponential scale (same distance between 1 and 10 as it is between 10 and 100).
If crypto follows an adoption cycle, follows Metcalfe's law, then we should expect exponential growth.
This chart looks normal, right?
I'm not 100% on that yellow channel btw, but it looks neat so far hey.
Now check out $BTC in Linear.
Ewww gross. Wouldn't go near it, right?
How about Log?
Will you look at this gorgeous #BTC channel? Such a healthy pattern, showing steady growth. Not the scary, overextended thing we saw in Linear scale.
(Pretty happy with those purple lines I drew a while ago hey!)
6/n: An aside
Those lines have the cycle top being around September October btw, and the target is over $200k. I'm not gonna try to predict an accurate top. That's not my game.
But I did a little thread about why I think the cycle ends there...
And again in Log.
Again, I'm not certain of the channel. But it all looks pretty easy doesn't it?
I believe successful trading is like 65% emotional regulation. The rest is knowing chart patterns and risk management, etc.
Know your biases and limitations.
When it come to #TA, trust the chart, not your heart.
I've been looking at these macro setups on a bunch of #dinocoins. I was watching $ETC for its pattern completion before it hit its 2017 highs.
Seeing that play out gave me confidence in my thesis.
Check out my first thread:
Follow&Retweet pls 😊