I'm confused by the Nyquist channel capacity formula. How can channel maximum capacity approach double the bandwidth.
$C = 2\times BW \times log_{2}(L)$ bits/sec
The way it was explained to me way back when when I took a telecommunications course was as follows.
C = Maximum channel capacity in bits/second
BW = (highest frequency - lowest frequency) that the channel can accommodate.
L = signal levels So in the figure below, where BW = f; the frequency of the sine wave; and L = 2 for -1 and + 1; the channel capacity is C = 2B because we can consider the positive part of the sine wave as = to a 1 bit for half the period, and as a 0 bit for the negative half of the period.
Now i'm not sure that this is correct, as that doesn't seem like "information", being that it doesn't seem to decrease entropy, or uncertainty?
so if that's not correct, what is an example of a signal with capacity twice the bandwidth?
Or am I just not understanding the entire concept?