Orange prices have been rising since 2020, but in August this year, commodity futures markets expect a surge.
At the same time, orange juice futures hit record highs:
“Prices in the OJ futures market have surpassed $3 a pound for the past few weeks. This time last year, prices were around $1.81 a pound.
The price increase was mainly fueled by the tight supply of citrus around the world.”
Imagine how expensive oranges could get if supplies were limited to 21 million.
Orange and bitcoin prices over the three-year period
Whether the Bitcoin price will rise in August is an open question for the market. However, Fed IMF data shows that since January 2020, orange prices have been spiraling out of control like BTCUSD.
Global prices for oranges. Source: Imgur
The correlation between BTCUSD and orange prices and orange juice futures is theoretically what Bitcoin proponents expected if their cryptocurrency project were to succeed. Now their theory is empirically confirmed.
The orange comparison is so legally accurate after the SEC vs. Ripple fight that one might suspect that Satoshi Nakamoto (who designed Bitcoin’s logo) researched US securities law before launching his project. This is another sign of the absolute professionalism of the BTC project from start to finish.
Aren’t you happy about inflation protection?
Global orange prices have increased by over 180% since January 2020. Meanwhile, BTC is down around 230% from the $9,000 level in January 2020. That’s because the dollar’s inflation represents BTC’s price rally, just like consumer goods prices. When the Fed cuts rates, dollars buy less, but BTC buys more.
A dollar earned in January 2020 can no longer buy half the oranges you used to get. But someone who has saved on the Bitcoin blockchain has more than kept pace with inflation. You can still buy more oranges today than when you deserved it. This is why die-hard bitcoin advocates say it is an inflation hedge for your earnings.
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