One chart scale changes everything 😎

Recently I was breaking down how a truncated Y-axis inflates growth out of nowhere.
And now its cunning relative - the logarithmic scale 🤔

Let me say right away: this is not a truncated axis. The logic here is a bit different.
A linear chart shows "by how many dollars" the price moved.
A logarithmic chart shows "by how many times" 💯

Here are a couple of examples:
1️⃣ MicroStrategy. First it crashed almost to zero, then grew many times over.
On a regular chart, this rebound = a barely visible bump at the very bottom. But on a logarithmic scale, it's immediately clear: the stock came back to life 🔥

2️⃣ Bitcoin. The old meme "bitcoin is going nowhere".
On a logarithmic chart, you can see why they say that.
Earlier it jumped from level to level. But after 2021, it's been stuck in one range and not moving higher.
The culprit = the logarithmic scale.

No chart lies (well, almost 😁). Each just answers its own question.

Full breakdown with examples in the article 👇
vc.ru/money/2967961-lineynaya-i…ifmicheskaya-shkalyi

@data_dzen 🙂