Bitcoin and Avocados: Correlated Assets?

[Sithara007]

The reason why the avocado price went up recently was due to the supply crunch. Trump was threatening sanctions over Mexico (in retaliation for the migrant caravans) and the price went up due to the scarcity. The same thing is going to happen with Bitcoin next year. After the block reward halving, there is going to be a supply crunch in the market and we can expect the prices to go up, just like the avocados. 

[The Sceptical Chymist]

Nah, they look correlated there but I don't think there's any real relationship.  That's an example of seeing what you want to see in a small sample of statistics.

I buy avocados and haven't noticed prices fluctuating all that much, and they're usually on sale anyway.  Then again, that's probably because the store buyers hedge their purchases with futures somehow.  I'm more curious to know if bitcoin actually does show a strong correlation--positive or negative--with something significant like the stock market, real estate, gold, unemployment, or something like that.  Not sure if any economists have done studies like those, but I'd find the results interesting I'm sure.

[Ucy]

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?

Interesting one. Unfortunately I can't see the chart very well.
 So, does this mean that many Bitcoin users are avacado lovers or they get too existed/sad when price is going up or down that they begin to consume avacado? It is possible that people attach the pear to their favorite cryptocurrency personalities who promote pear.. . The good times in Crypto remind them of those crypto personalities... making them to go back to consuming avacado. while the bad times make them lose interest in the pear?

[mu_enrico]

Ah, this problem is similar to the stock-to-flow one. For research purposes, research constructs should be created with sufficient literature research and understanding about the particular field.

Otherwise, humans tend to find patterns in absurd ways, for example, "the man in the moon."

https://www.nationalgeographic.com/news/2014/4/140412-moon-faces-brain-culture-space-neurology/

[Mahanton]

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

~snip~

People do really love to tie up things basing on their own observation without even realizing on how coincidence works and this doesnt only happen with Bitcoin but also to those crazy
stats you had shown with those images above which i did actually laugh when seeing or theyre being compared.

Now, they do tell that Bitcoin is most likely to fall because it do follow up with Avocados trend price? Are you serious? 

[Brunus]

Well, I tend to think it's a coincidence. Also because I'm not sure how an avogado blockchain would work ...
But all the coincidences teach something, so ... to keep an eye on, you never know ...

[CryptoBry]

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.

Yes, of course, this is just another thing in the universe when the stars are aligning and there is that pull on both avocados and Bitcoin. Just another coincidence. Purely entertainment and why not? We can't be too serious here all the time so we need some avocado shake to freshen our minds and bodies. Personally, I love the taste of avocados and it has many good nutrients too categorizing it as one of the so-called "superfoods" alongside other exotic finds like açai, blueberries, pomegranate, cacao, cranberries, grapefruit and the likes. I am even planning to start my own farm maybe by next year after the bull run of Bitocin so I can have the money to buy the land and to start operation.