Golden Ratio

Definition ∞ The Golden Ratio is an irrational mathematical constant, approximately 1.618, often represented by the Greek letter phi. It arises when the ratio of two quantities is the same as the ratio of their sum to the larger of the two quantities. This proportion is observed in natural phenomena and artistic compositions, often associated with aesthetic balance. Its properties appear in various mathematical sequences.
Context ∞ While not directly tied to core blockchain mechanics, the Golden Ratio occasionally surfaces in speculative market analysis or technical charting within crypto trading. Some analysts use Fibonacci sequences, which are related to the Golden Ratio, to predict price movements or identify support and resistance levels. Its application in digital asset markets remains a subject of debate among quantitative traders.