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Since 2020, orange prices have been increasing, and this August, the commodities futures markets anticipate a significant rise.
Concurrently, orange juice futures are reaching unprecedented levels:
“In recent weeks, prices in the OJ futures market have exceeded $3 per pound. Around this time last year, prices were approximately $1.81 per pound.
The surge in prices has been primarily driven by a limited citrus supply worldwide.”
Consider how expensive oranges could become if the supply were restricted to 21 million.
Oranges and Bitcoin Prices on a 3-Year Trend
The question of whether bitcoin’s price will increase in August remains open for the market. However, IMF data from the Fed indicates that orange prices have been escalating since January 2020, similar to BTCUSD.
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Global Prices of Oranges. Source: Imgur
The relationship between BTCUSD and orange prices, as well as orange juice futures, aligns with what bitcoin proponents anticipated if their cryptocurrency initiative succeeded. This theory is now supported by empirical evidence.
The comparison to oranges is particularly relevant following the SEC vs. Ripple case, leading one to wonder if Satoshi Nakamoto (who created bitcoin’s logo) had familiarized themselves with U.S. securities regulations prior to launching their project. This reflects the BTC project’s professionalism from inception to completion.
Isn’t It Beneficial to Have an Inflation Hedge?
Global orange prices have risen by over 180% since January 2020. In contrast, BTC has experienced a rise of approximately 230% from January 2020’s $9,000 levels. This is due to the dollar’s inflation influencing BTC’s price increase, just as it affects consumer goods prices. When the Fed lowers rates, dollars purchase less, while BTC purchases more.
A dollar earned in January 2020 can no longer buy half the oranges it once could. However, one saved on bitcoin’s blockchain has more than kept pace with inflation, allowing it to purchase even more oranges today than it could at the time it was earned. This is why bitcoin’s staunch supporters claim it serves as an inflation hedge for their earnings.
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