Avocados have become pretty popular over the past few years, proving to be a big hit with the millennial generation. Hipsters are putting avocado on toast and while it’s a super healthy way to kick off your day, there is a whole world of economics behind the delicious green fruit. Interestingly, as of late the price of Bitcoin and avocados have been following each other, albeit rather loosely. Whether it’s just pure coincidence or millennials do buy more Bitcoin when avocado prices go up we will never know, but the data could be useful.
Trump’s Trade War Helping Bitcoin – And Punishing Avocado Consumers
It’s no secret that Donald Trump isn’t a fan of Mexico, and has repeatedly called for a wall to be built between the two nations – turning America into a giant Alcatraz. As well as his huge border wall plans, Trump has also been taking a stand against imports from Mexico in a bid to persuade Americans to buy American grown produce. Trump is doing the same thing with tech from China, making importing mining rigs very expensive.
Starting June 10th, there will be a 5% import tax on goods from Mexico, increasing 5% each month to its peak of 25% in October 2019. This rising tax has forced the price of avocados to spike in recent weeks, around the same time Bitcoin started to boom.
Millennials Control Both Markets
Without a doubt, millennials are the largest consumers of avocados in the US – and possibly around the world. Their incredible health benefits – along with delicious taste and popular memes – have encouraged millennials to head out to the store and spend their paychecks on these lumps of green gold. Interestingly, according to data from CoinDance, 47% of all Bitcoin community engagement is from the 25-34 age bracket – the same age group that’s hooked on avocados.
It’s Not the First Time
This isn’t the first time we have seen the two price indexes correlate with one another. As crypto entrepreneur Jen Zhu pointed out on Twitter, the two are inexplicably linked together, and nobody can figure out why.
Once again #Bitcoin price trend correlates with avocado’s ?. Share your craziest theories to explain this. Being funny gets extra points.
— Jen Zhu (@jenzhuscott) June 1, 2019
While there could be some bizarre reason for the two to be following one another, it looks like it’s just a random coincidence that has been noticed because of the millennial’s love for avocado – the generation that also controls a large portion of the media by the way. Chances are, you could pull up 1000s of different charts that perform similarly, it’s just that none of them are as mainstream as avocado.