Approaching BTC ATH in $, but lets see that for local groceries prices

[stompix]

We all say Bitcoin is the best hedge against inflation, but saying this while keeping the ATH in $ is a bit misleading, isn't it, since the $ is also losing purchasing power, so how about we take a look at BTC ATH from a different angle, just to pass some time before it hits 100k  

So, just like my other topics that are more regional related:
Community research: To drink or to buy coins?
Days you need to work your ass at minimum wage for a BTC, by country


how about we express the local ATH by comparing it to food specific prices, that would be far more interesting and and also down to earth approach!
Feel free to do this with any food/groceries/drinks stuff you know the price for back in 2021 in November!

We take the extreme ATH of 69 000.
So , an example of it:

Coca cola - USA prices



It was $1.95  back in November, it's 2.68 right now at Walmart so (69000/1.95)*2.68 so in Cola the ATH is 94,830!

Europe, upper quality pork meat:



It was 12.49E in November 2021 , right now 14.99 so (56000/12.49)*14.99 , the ATH is 67,208 (euros)!

Eggs, now this one is funny, I have to prices saved
- the 20 pack is down from 22cents to 20 cents (same brand)
- the 10 pack is up from 20 cents to 24 cents (same brand again)
So here we're going to stick with the ATH at the same level

Adding a bit of flavor to the ones that have increased the most, chips and other snacks:


Pringles Original, the receipt says 1.38, now the same shop is 1.99
So again the math (56000/1.38)*1.99, so that would be 80,753 (again euros)!

I'm really curious at the contributions from other countries, those hit more by inflation!
Hint, you can easily get those prices if your local superstore chains has leaflets, just search for them with the 2021 term, you for sure will hit an archive in the searches!

[1714310423]

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[Solosanz]

Your calculation is correct if they bought Bitcoin at ATH and didn't do anything until now, while what have been told by a lot people, DCA-ing Bitcoin is the safest strategy. If they keep DCA-ing Bitcoin from ATH until now, they're already surpass the ATH equivalent in Cola, Pork Meat and Pringles.

To be honest I didn't expect if inflation rate in US is high too considering if you compare USD to other local currency, USD is almost beat all local currency.


https://cryptodca.io/crypto-dca-calculator/

[FatFork]

According to inflation calculators online, the U.S. dollar has lost some serious buying power since 2021. A cumulative inflation rate is around 13.8%.

So, if we adjust for inflation, that sweet $69,000 ATH from back then translates to roughly $78,522 ($69,000x1,138) today.

The Eurozone seems to have a slightly higher cumulative inflation rate at 16.9%.  That means for my European friends, the real Bitcoin ATH would be close to €69,900 (€59,800 x 1,169), or $75,900 based on today's exchange rate.


Fun fact btw: BTC just broke its previous all-time high in Euros, reaching above €59,800 which was set in 2021.

[stompix]

If they keep DCA-ing Bitcoin from ATH until now, they're already surpass the ATH equivalent in Cola, Pork Meat and Pringles.

As I said before, it's about being a hedge against inflation, not about the investment strategy!

Fun fact btw: BTC just broke its previous all-time high in Euros, reaching above €59,800 which was set in 2021.

Yeah, it didn't really helped that at the previous ATH the euro was coming after a period of gaining against the USD and while slightly lower in November than in April it was still up 5% compared to today's rate. Now f the ATH would have been in November 2022, it would have been a 10% different story the opposite way.


Now since I don't see anyone doing the food analogy, let's run the numbers for one of the commodities that hit the news lately, rice in Nigeria


Data says a kilo of rice was N420 in November 2021, while BTC was at 26,440,000. So one Btc would have got you 62,952 kilos of rice.
With the naira falling like there is no tomorrow, the data for now look like:
Current price is N1600 per kilo, and BTC is at 102,880,000 so a BTC would give you 64,300 of rice! Just broke the ATH in food while the ATH in nairas was broken by 4x times.

Seems like storing rice would have been also a nice idea!

[Fiatless]

In 2021 a Coca-Cola 60cl pet drink was sold at about N150 in Nigeria and one dollar was about N409.3900 which means one Bitcoin would be equal to 28,247,910. Then one Bitcoin could buy about 188,319 60cl pet drinks. The current price of 60cl bet drink is N300 and the current dollar rate is 1,561and 1BTC to naira today is about 98,843,465. Bitcoin can afford about 329,478 60cl pet drinks. It is clear that Bitcoin has broken its ATH in the Coca-Cola pet drink.

[Darker45]

I cannot remember how much exactly was a bottle of Coke back in 2021. I can hardly remember any price changes in the past 3 years as well, but it is indeed a good thing to take into consideration inflation when it comes to attaching the dollar price to Bitcoin. An inflation-adjusted price might give us a different number.

Jameson Lopp once mentioned that Bitcoin's ATH shouldn't be $69,000 because that price was only referring to the USD back in 2021. An inflation-adjusted ATH might be around $79,000. I don't know how he made that computation, however, or whether it's correct or not.

[yhiaali3]

A really interesting comparison. I made a comparison between the price of meat in my country at Bitcoin ATH in 2021 and its price now and found the following:
The price of meat in 2021 is about $10 and is worth 32,000 liras, my currency. 1 bitcoin at that time could buy 6900 Kg of meat.

While now one kilo of meat is worth about $15 and is worth 225,000 liras in my country, one Bitcoin at this time, at a price of 69K$ can buy 4600 kilos of meat.

So Bitcoin ATH in “meat” in my country should be at a price of 6900*15=$103.500

[Kakmakr]

No, using those food & drink prices as a measure are going to be too inacurate. The prices differ too much from store to store and popular brands like Coke are used as marketing tools. (Shops always have specials on those items to attract people to their stores) They also differ in content and size..

A good food item to use will be a "Big Mac" from McDonald's because they are very similar in size and weight all over the world.

[stompix]

It is clear that Bitcoin has broken its ATH in the Coca-Cola pet drink.

Wow so the situation is better in cola than in rice there?
This assuming my above calculation is correct, I've take it from news titles from Nigerian papers!

I cannot remember how much exactly was a bottle of Coke back in 2021. I can hardly remember any price changes in the past 3 years as well, but it is indeed a good thing to take into consideration inflation when it comes to attaching the dollar price to Bitcoin. An inflation-adjusted price might give us a different number.

I too unfortunately have no receipt from that date, but I sometimes have a habit of screenshotting my basket before doing purchase online, this because of the f**8 ton of vouchers that almost every time fail to apply the first time. But you can always do a bit of checking if you look for flyers., but I don;t know if those ar that common in Philippines as they are here!

A good food item to use will be a "Big Mac" from McDonald's because they are very similar in size and weight all over the world.

With 2 million Muslim not eating pork and 1.5 billion Indians not eating cow meat it's hard to take anything as a true indicator. Also, just looking at one single example from a company might be misleading, McDonald can decided to raise prices everywhere or drop them even if the economies are different, plus it involves a ton of other things, like the amount of taxes a country applies, the minimum wage and so on, tax a on fast food or on sugar and on and on and on.
One country raising VAT for fast food from 9 to 19% doesn't mean inflation is suddenly up 10%. The big max index is too heavy influenced by other factors beside inflation, doing groceries one by one is a better down to earth example how some things skyrocket while others keep unchanged.

So Bitcoin ATH in “meat” in my country should be at a price of 6900*15=$103.500

Go vegan moment 

[Darker45]

I cannot remember how much exactly was a bottle of Coke back in 2021. I can hardly remember any price changes in the past 3 years as well, but it is indeed a good thing to take into consideration inflation when it comes to attaching the dollar price to Bitcoin. An inflation-adjusted price might give us a different number.

I too unfortunately have no receipt from that date, but I sometimes have a habit of screenshotting my basket before doing purchase online, this because of the f**8 ton of vouchers that almost every time fail to apply the first time. But you can always do a bit of checking if you look for flyers., but I don;t know if those ar that common in Philippines as they are here!

They aren't. Those are additional expenses businesses probably find worthless. Also, it isn't common for people here to do their regular grocery shopping online.

Anyway, this one I can remember. A kilo of rice in 2021 was around $0.81. Today it is $1.07. There was an increase of around 25%. So, if we do your method, this means the inflation-adjusted ATH of Bitcoin, at least as far as rice is concerned, should be $91,148.

It's always going to be a race, at least as far as Bitcoin is concerned. With fiat, it isn't a race as prices are always increasing while the value of money is always decreasing. I'm rooting for Bitcoin in this race. $91,148 will be easily reached within the year.

[Wind_FURY]

OP, what a good topic you started here! But what's the actual point, and are you actually proposing that Coca Cola, Pork, and Pringles are better stores of value than Bitcoin?

Good luck with that on portability, divisibility, liquidity, and adoption. Plus I heard the Coca Cola blockchain and the Pringles blockchain are not very compatible with each other. 1 = 1 might not actually be 1 = 1. I believe sending and receiving them over long distances can be a problem too.