Bitcoin and Avocados: Correlated Assets?

[CryptoBry]

This is an interesting (well, can also be funny and entertaining I guess) piece linking the price movement of Bitcoin and guacamole which has one element present in both: millennials. Let's take a look:

...Bitcoin had shown some correlation with gold, strengthening the safe haven narrative that has been at the forefront of 2019. But Bitcoin has also shown correlation with another hot commodity adored by millennials: avocados.

Both appear to have dragged along a bottom in early 2019, only to skyrocket in value starting in early April. The price of each asset rose steadily in the second quarter of 2019, but topped out in late June and early July, and has since started to decline back to previous lows. If there really is a true direct correlation to be made, another sharp drop on avocado’s charts suggests that Bitcoin has much further to fall.

You can read more of this here...

In the following weeks, it would be good to revisit this comparison between Bitcoin and avocados if they can really be correlated. For now, do you think there is really a connection or just amazing coincidences?

[dothebeats]

Just an amazing coincidence, for sure. The avocado hype has something to do with the fruit being used in a lot of cosmetic materials currently and of course, the unique taste of the fruit when combined with a lot of dishes. For sure avocado has its own merits, so does bitcoin too. It's pretty plain to see that they're entirely different commodities that serve/satisfy a different demographic, so yeah, as much as we want to believe that these two are entirely correlated, unfortunately we can't.

Kidding aside though, we might face further decline in prices should the $8k support levels won't hold. That's something, and perhaps the avocado price movement could predict that in a way.

[lionheart78]

Just an amazing coincidence, for sure. The avocado hype has something to do with the fruit being used in a lot of cosmetic materials currently and of course, the unique taste of the fruit when combined with a lot of dishes. For sure avocado has its own merits, so does bitcoin too. It's pretty plain to see that they're entirely different commodities that serve/satisfy a different demographic, so yeah, as much as we want to believe that these two are entirely correlated, unfortunately we can't.

Kidding aside though, we might face further decline in prices should the $8k support levels won't hold. That's something, and perhaps the avocado price movement could predict that in a way.

Not only it is used as cosmetics materials, it is also used as herbal medicine that is mixed in a daily supplement capsule/powder.  I also think that it is just an amazing coincidence.  Since the industry where they belong are not related in one way or another.  Any fluctuation on each industry will not have an effect to the others.  Except if Bitcoin will be used to buy Avocados in the market.

[figmentofmyass]

i'm embarrassed for the author of the newsbtc article. tracy was obviously just making a joke......

as long as we're coming up with useless correlations, i've got another one: Divorce Rates Linked To Margarine Consumption

if you want to keep a healthy marriage, stay the hell away from margarine!

[Mometaskers]

Haha, millennials and their disgusting green goop.  Either she really is joking or her brain has turned to guacamole.

A complete coincidence, unless it can be proven that millennials make up majority of bitcoin traders and that most of those traders are obsessed with avocados and what we are seeing here are them having less and less money to buy both bitcoins and avocados.

[styca]

aaaaaaaaaaaaaaargh. i think it is a joke though, no way that could be serious.








from http://www.tylervigen.com/spurious-correlations

[ecnalubma]

Crazy article maybe just for the sake of entertainment, who would take this seriously anyway? Obviously they can't find a decent article to post. I believe each asset has different characteristics but definitely this just another strange coincident. Yet there are a lot of assets correlate with Bitcoin performance.

[bryant.coleman]

WTF man? The last thing I would do is to compare Bitcoin with some fruit. Each and everything is correlated in today's economy. For example, when the stock markets are in good health, we can expect the per capita spending to increase, and you may find demand for most of the items increasing. This not just true for avocados, but also for automobiles, real estate.etc.

On the other hand, when the market goes down, the prices may decline as there is less demand (check what happened during the 2008/09 recession). The only type of asset that may increase its value are those used as store of value, such as gold and platinum. Back then real estate prices dropped by more than 50% in many of the regions around the world.

But I am sure about one thing. Bitcoin has the potential to rise by 10x or 20x in the next few years. I don't expect avocados to rise by that much.

[DBronze98]

This is my personal opinion, I just see that Avocados and Bitcoin are unrelated, sometimes the chart is just a coincidence. You know, the crypto market is a place for manipulators to rage, so there won't be any predictions that are accurate. Bitcoin's price is controlled by manipulators but Avocados.

[fiulpro]

This is hilariously weird , I think both are great but correlating one food thing with something entirely different is kind of funny and also you should u should understand that , who makes the charts ?
Us .. then we can actually you know, take some things out and add some , also at the same time the time coordinates you are using plays a major factor , it might be 1 day , 1 year , 1 minute , it's your chart.
So someone I think just did this for fun ..

[elda34b]

Cum hoc ergo propter hoc.

Good comedy though, and yet people are responding as if they're really serious and start writing a long post about it.

[blckhawk]

I think it's only a coincidence. The correlation between the two is highly unlikely. It's funny to think that Avocado's trend would be an indicator to a completely different entity such as Bitcoin.

I'm just thinking, how did you come up seeing avocado's market? Did you just stumble upon it and decided to compare? It's funny though, a good laugh amidst current market's status.

[Pearls Before Swine]

The avocado hype has something to do with the fruit being used in a lot of cosmetic materials

First thing I thought of when I heard millenials in the story was their avocado and toast thing, not guacamole or any cosmetic applications. 

I think it's only a coincidence.

I'm almost certain of it myself, not to mention I can't see the time scale on the chart.  Those two graphs do look correlated, but remember those are only two variables and what the data aren't showing you are any other commodities (or anything else) that might have the same shaped price graph as either avocados or bitcoin for the time period being shown.  It's a fluff 'article'.  Junk science.

[finzyoj]

I just caught myself laughing while reading this post. Of course no one would believe in this news . There's no way that a fruit is correlated with crypto simply because they got different fields. Though they seems got same pattern of graph, I'm pretty sure it's only a coincidence.

But seriously, where can I found a live graph of fruits' demands if ever there is one?

[hatshepsut93]

This is an interesting (well, can also be funny and entertaining I guess) piece linking the price movement of Bitcoin and guacamole which has one element present in both: millennials.

This is just a joke that demonstrate a fact that is well-known to scientists - correlation doesn't mean causation. So, millenials don't have anything to do with Bitcoin crashing, there's no mechanism that could explain why both avocados and Bitcoin fall simultaneously because of millenials. Bitcoin itself really doesn't correlate with anything, just because it is very volatile and even if there are some small connections, they are overshadowed by volatility.

[1Referee]

But seriously, where can I found a live graph of fruits' demands if ever there is one?

It mostly comes down to pricing based on futures contracts. This article provides an interesting read about what these futures are and how they work. It's about apples, but it works similarly with any other fruit.

Most reputable brokerage firms should offer you live pricing on various soft commodoties. It's a though market to trade with how heavily it depends on the underlying fundamentals, while an asset such as Bitcoin is just what the chart shows you is what you get. A lot of people got rekt hard trading soft commodoties.

[coolcoinz]

Try to find a pattern somewhere and you will do it eventually. We see what we want to see!
Take a look at OP's picture and notice that in the beginning there's a huge discrepancy between these two charts. They begin completely different and they end different, only the middle is very similar, but it the charts change drastically if you take one asset on the daily and another one on the weekly. By expanding/contracting timeframes and cutting out the fragments you find suitable you can make almost any chart look similar.

[NathanJB]

That article may be far-fetched and ludicrous but that is sure a fun thing to read. Solely for fun's sake, of course. Nothing more.

This correlation thing though is oftentimes taken too easily without establishing anything first. Aside from the fact that one does not cause the other, there really is no connection at all. Whatever movement Bitcoin takes, it has nothing do with any fruit. Only gravity and apples are connected.  

[AniviaBtc]

But I am sure about one thing. Bitcoin has the potential to rise by 10x or 20x in the next few years. I don't expect avocados to rise by that much.

I agree, we just need to be optimistic when it comes to bitcoin. I can't wait for the time that bitcoin will dominate other currencies again. Just look forward on the effect and importance of bitcoin in our economy and the rest will follow. Just don't mind the avocado, just focus on the power of bitcoin because there is so much more about it. There's a lot of good thing in the bitcoin rather than the fruit. It has a lot of things that it can do that the avocado fruit can't.

[el kaka22]

This is more in the lane of "rocks are hard, life is hard, rocks are life" type of funny thing.

However, it is always funny to see what we could have invested and got the same amount of return as bitcoins, there are stuff in life that gives returns as much as bitcoins and I wasn't really expecting that, it is good to see other stuff are volatile like bitcoin as well.

Nobody talks about how "avocado is about to die" or how "avocado is a bubble" or something, they know it is a product they can hold in their hands so they just say it is a thing that will always have a value because people will want to eat it, not like guacamole will vanish all of a sudden so avocado will always have a price, but since they can't hold bitcoin in their hands they keep saying it is a bubble and will die eventually.