Would you recommend using a logarithmic graph because you expect Bitcoin use to increase exponentially? In that case, wouldn't the use of a logarithmic scale at this point imply a direct belief in the future of Bitcoin use?
It has nothing to do with scale. It has to do with change. The change in value for bitcoin is what we care about, we want to see how it changes over time.
> Would you recommend using a logarithmic graph because you expect Bitcoin use to increase exponentially
No, that's not why at all.
It's because if the value goes from $10 to $20 - that's exactly the same as from $20 to $40. A logarithmic graph shows that correctly, a linear graph makes it looks like 20 to 40 is twice as large as 10 to 20, but it's not.
This is pretty much it exactly, and why the whole "OMG log graphs!!!" thing pops up in finance only when you're talking about Bitcoin and its alts.
Though even then I can't figure out why, you only would want log graphs for exponential growth or decay, which isn't something we're seeing out of Bitcoin except for a brief period of tulipmania.
> pops up in finance only when you're talking about Bitcoin
If you are looking at linear stock value graphs you are being mislead. If you want to make correct decisions based on graphs they must be logarithmic (except percent graphs). Any stock trader that uses linear graphs will lose his shirt. (And I am well aware that the default stock graphs are all linear.)
> you only would want log graphs for exponential growth or decay
No, that's not correct (for the common meaning of exponential meaning "huge"). You want a logarithmic graph anytime the future value of something depends on the present value (i.e. the mathematical meaning). Which is most of the time. Most things in the world, the amount you have today influences how much you will have tomorrow.
It's actually rare to want a linear graph. You only want that when how much you have tomorrow has nothing to do with today.
So population should be logarithmic (the more people you have the more will be born), but infant mortality per capita should be linear (future levels of infant mortality do not depend on how many died in the past).
I wanted to, but the site has no place for comments and no info on how to reach him.
His conclusion at the end is that the total dollar volume is approximately flat, and he bases this on the graph, but it's not completely flat - it's bumpy, so you can't actually tell on a linear graph if it's flat or not.
Can you show me a stock trading platform that uses log values by default?
Yes, log graphs are very useful when you're looking at developments of stock values and many other financial variables - predominantly over longer terms when the changes are high enough that the difference matters.