Post
Topic
Board Speculation
Re: Top 20 days for Bitcoin
by
dree12
on 23/01/2013, 03:48:58 UTC
Interesting, what assumptions would you say are being made with this model? E.g., Why should price be modeled as the log of the rank?
This is the King effect. While the majority of data points fit onto the line, the top few are above it. This suggests that we are unlikely to have the top 10 days having a similar price, i.e. there will be a significant reduction after the top is reached. This has been particularly applicable to Bitcoin so far.

They clearly don't though. The line overestimates price around 20 and underestimates around 14.

That's cause my line is slightly distorted by the three kings. Slightly tilting it towards the horizontal axis would illustrate it better.