mister--wizard on Nostr: it's like what happens with a ball on a spring where restoring force is proportional ...
it's like what happens with a ball on a spring where restoring force is proportional to distance from neutral position. ball repeatedly overshoots neutral position as it goes back and forth. interesting thing is that maximum velocity is reached as ball wooshes past neutral position where restoring force is zero, and minimum velocity (zero) is where restoring force is maximum at extremes where ball stops and turns around. damping is due to frictional forces. lots of similar examples in nature: basically anywhere you have "springs" or "waves" you will get sinusoidal motion. "spring" in case of btc chart could be some trader or bot (e.g., grid bot) that increases size of bet that price will revert to mean ("restoring force") with increasing distance from some moving average ("neutral position"). but if so, i expect that sooner or later they will get rekt, like the Nobel Prize winners who made a killing for about 6 months before almost crashing the Western financial system in 1999 (i.e., check out story of hedge fund called LTCM = Long Term Capital Management).
Published at
2024-01-15 09:54:02Event JSON
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"content": "it's like what happens with a ball on a spring where restoring force is proportional to distance from neutral position. ball repeatedly overshoots neutral position as it goes back and forth. interesting thing is that maximum velocity is reached as ball wooshes past neutral position where restoring force is zero, and minimum velocity (zero) is where restoring force is maximum at extremes where ball stops and turns around. damping is due to frictional forces. lots of similar examples in nature: basically anywhere you have \"springs\" or \"waves\" you will get sinusoidal motion. \"spring\" in case of btc chart could be some trader or bot (e.g., grid bot) that increases size of bet that price will revert to mean (\"restoring force\") with increasing distance from some moving average (\"neutral position\"). but if so, i expect that sooner or later they will get rekt, like the Nobel Prize winners who made a killing for about 6 months before almost crashing the Western financial system in 1999 (i.e., check out story of hedge fund called LTCM = Long Term Capital Management).",
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