Things That Matter

The Value Of Bitcoin Appears To Correlate To The Value Of Avocados And Economists Are Left To Figure Out Why

What if we told you that there’s a correlation between the value of the humble avocado and the ever-mysterious bitcoin? But wait, it’s not what you’re thinking – bitcoin hasn’t suddenly become as affordable as an avocado, nor are avocados now overwhelmingly expensive. Rather, there’s a relationship between the indexes used to track the value of bitcoin and our beloved avocados. And, if we’ve lost you there when we started using words like “indexes,” you’ve come to the right place: we’ll explain.

Let’s start with the correlation between avocados and bitcoin.

Basically, the tea is that one astute observer on Twitter realized that if you look at a graph showing the values of bitcoin and avocado for 2019 beside each other, you’d see that both seem to rise and fall around the same times. The implications of this freaked people out, because if you’ve got the ability to map avocado prices, then maybe, just maybe, you could predict bitcoin prices, too. And remember when bitcoin was worth a lot of money? It meant that people could potentially get richfrom predicting the value of bitcoin. And who doesn’t want to get rich?

You’ve probably guessed that this is where economics comes into it: don’t worry, we’ll break it down for you.

Firstly, it’s important to know what we’re talking about when we say “index price.” It’s basically like the average price of a product, globally. It’s this that shows, in mathematical terms, the ebb and flow of “supply” and “demand” – two processes that form the foundations of economic thinking. The idea is that the value of something is determined by how much of it there is, and also how much people want to buy it.

But it’s all about supply and demand…

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Probably the best way to think about supply and demand is in terms of when fruits, like avocados, are in season. Because when avocados are in season, and lots are growing, it means that supermarkets will have plenty to sell to their customers – they have a large supply. They’ll want to sell it quickly so that they can a) make a profit, and b) do so before the avocados go bad. So, they make them cheap, or less valuable, to encourage people to buy more avocados.

At the same time, though, this process also depends on how much people want to buy avocados.

Credit: avoseedo / Instagram

If there’s a sudden craze for avocado on toast, and all of the avocados are bought from the supermarket before they can satisfy every customer’s craving, this means that demand has outstripped the supply. This can drive the price up, as the supermarket knows that people really want the avocados, and so they’ll get away with charging higher prices for them.

Supply and demand isn’t always so straight forward – which is why people are looking for a correlation between Bitcoin and another tangible commodity to begin with.

Credit: 7pmfortune / Instagram

All of this is pretty much the basis for economic thinking. Of course, it’s a bit more complicated – a whole bunch of different things can affect supply and demand, such as local politics, the environment, international diplomacy and agreements, the media, and even speculation from experts. 

But what about Bitcoin?

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The same process of supply and demand also works with bitcoin. Even though it’s an online currency, it’s protected by software called “blockchain.” The purpose of blockchain is to basically ensure that you’re buying and selling with safe, legitimate bitcoin – remember, at the end of the day, bitcoin is made from software, so it is theoretically vulnerable to issues like viruses and counterfeiting. Blockchain technology secures it so well that so far, no-one’s been able to infect it, or produce counterfeits.

Bitcoin’s always had an aura of mystery around it – and not just because it’s difficult to “mine” bitcoin, or predict its value.

Instagram / @lisabello441

The weird thing about bitcoin is that no-one knows who actually invented the whole thing. It just kinda popped up one day, ready for people to use with transactions. There’s a lot of theories out there about who created bitcoin, and why they released it the way they did. The technology for bitcoin is so clever and complex, whoever created it is basically the next Steve Jobs. It’s possible that they just didn’t want the chaos of everyone knowing that they invented bitcoin – and created a pseudonym to protect themselves. The other thing is that, by not telling anyone the inner workings of bitcoin, it means that bitcoin is more secure and legitimate: no-one knows how to make it from scratch, or corrupt it.

So now that you know all of this, you probably want to know how exactly avocados and bitcoin are connected. Well, while we’ve gone on this whole rollercoaster of an explainer, the moral of the story is that while there is a correlation between avocado and bitcoin prices, they don’t cause each other to change in value. The price of avocados and bitcoin just coincidentally rose and fell at the same time. Correlation does not equal causation. But you didn’t learn all of that for nothing: you now know enough about it  to understand this terrible joke …

The Escobar Family Is Making Foldable, Ultra Secure, Unbreakable Smart Phones And They Sound Kind Of Amazing

Things That Matter

The Escobar Family Is Making Foldable, Ultra Secure, Unbreakable Smart Phones And They Sound Kind Of Amazing

Escobar Inc

It must not be easy to carry the last name Escobar in Colombia, as some people will immediately ask you if you are related to perhaps one of the most famous Colombians of all time: the drug lord Pablo Escobar, hated my many and loved by some, and who reshaped not only the global trafficking of illegal substances, but also the geopolitical map of the continent. After his death at the hands of the DEA and the Colombian authorities Escobar’s family has lived a perilous life. His son, for example, changed his name and wrote a memoir. 

We haven’t heard much of Escobar’s family in recent years, but his brother has made the headlines for releasing a super resistant smartphone that is being promoted as a masculine commodity… so yeah, with scantly clad women… 

So who is Roberto Escobar?

Roberto Escobar was the accountant of his brother’s Medellin Cartel and he went to jail for it. Since his release from prison he has tried to become a tech entrepreneur and even engaged Elon Musk in a legal battle over the intellectual property of a propane flamethrower. He also sued Netflix for one billion dollars over the TV show Narcos, alleging that they use unauthorized content.

By the way, while he was in prison he lost hearing on one side after he received an exploding letter. He described his role in the Medellin Cartel in an interview with The Mirror UK: “My role was overseeing the books, managing the business and making the illegitimate money legit. On my advice, Pablo began investing in real estate, buying land and building and investing in construction”. 

Roberto Escobar, also known as El Osito, has released the Escobar Fold 1 foldable smartphone… and it all has a very 1980s Miami Vice look and feel

Credit: Escobar Inc

Roberto Escobar is now entering the fiercely competitive smartphone market with a device that comes with a price tag of $349 and is foldable. The phone is also allegedly unbreakable and comes with extra security features (and he knows about those things, right?). He will sell directly to customers and thus cut the costs associated with intermediaries. But can he really compete with the big players in the market? He is promoting his invention with women in bikinis and lingerie taking selfies in a very unnatural way… it is like a 1980s character from Miami Vice (or a 1980s version of Donald Trump!) designed and approved this marketing campaign that just doesn’t speak to our times. 

He claims that he will beat Apple in the smartphone war, and that his product is better than Samsung’s

Credit: Escobar Inc

But Roberto Escobar, El Osito para los cuates, is dead serious in his quest to become a main stakeholder in the mobile media economy. He recently told Digital Trends in an interview: “I have told many people that I would beat Apple and I will. I cut the networks and retailers, to sell to customers phones that can fold for only $349, phones which in stores cost thousands of dollars by Samsung and others. This is my goal, to beat Apple, and by doing it myself like I always have.”

We might laugh off this claim, which might sound totally outlandish, but we must remember that Escobar helped build a global cocaine empire that produced billions of dollars (and caused countless deaths and considerable emotional trauma, so we are not justifying his actions in any way), so he knows his way around money and, yes, innovation (even if he is infamous for the most awful kind of out-of-the-box thinking). 

So is this phone special? Mmm.. we will wait and see

Credit: Escobar Inc

Digital Trends just published the specs on the phone, and from the technical point of view they are not impressive. In fact, the phone is very similar to Samsung’s: “The Escobar Fold 1 comes running Android 9.0 and has an Octa-Core 2.8Ghz Qualcomm Snapdragon 8 CPU, dual cameras at 16 and 20 megapixels, and a 7.8-inch AMOLED FHD+ screen when folded. The phone is capable of holding two SIM cards, and ships unlocked, so it can be used on your carrier of choice.”

So it is OK, but nothing to write home about. The selling point will surely be how resistant to falls and hits the phone allegedly is. Escobar told Digital Trends: “My phone cannot break, because I did not have to make a glass screen like Samsung. Our screen is made of a special type of plastic, and we still have the best resolution. Our special plastic is very difficult to break.”

We cannot wait for those unboxing and testing videos on YouTube trying to figure out how hardy the phone really is. 

The Cartels In Mexico Are Taking Over The Avocado Industry By Any Means Necessary

Culture

The Cartels In Mexico Are Taking Over The Avocado Industry By Any Means Necessary

Unsplash

Mexico has always been plagued with violence, but the new government under Andrés Manuel López Obrador implied things would be different. The violence in Mexico seems to be getting worse. One minute the cartel is blocking authorities from arresting El Chapo’s son, and the next, an entire family is ambushed and killed. The cartels in Mexico do not seem to be slowing down one bit. Now it looks like they are taking over the avocado industry. 

A group in Mexico that goes by the Viagras cartel is illegally taking over land in order to plant avocado trees.

Credit: @Faby_Nava77 / Twitter

According to reports by the Los Angeles Times and the Associated Press, a small group of armed people known as the Viagras cartel is infiltrating parts of Mexico. They are allegedly taking land that is not there’s, and that is, in some areas, protected land, and setting up avocado trees in order to produce avocados and sell them. 

“The threat is constant and from all sides,” Jose Maria Ayala Montero told the Los Angeles Times. According to the outlet, Ayala Montero works “for a trade association that formed its own vigilante army to protect growers.”

Local police are attempting to do something about it, but they basically have their hands tied

“They’ve done everything – extortions, protection payments. They’ve flown drones over us,” a local police chief told the AP. “They come in and want to set up (drug) laboratories in the orchards.”

The tension is not just coming from the Viagras cartel that wants to set up shop on land that is not theirs, but also from rival gangs that also want a piece of the multibillion-dollar pie. 

Credit: katelinthicum / Instagram

According to reports, in the state of Michoacan alone, the avocado export business brought revenue of $2.4 billion last year. We always knew avocados were hot, but not that kind of hot.  

“If it wasn’t for avocados, I would have to leave to find work, maybe go to the United States or somewhere else,” Pedro de la Guante said to the AP. De la Guante makes a good earning as a guard for a small avocado orchard. 

The demand for this coveted fruit has been growing considerably in the last decade. As the Associated Press reports, “It was only in 1997 that the U.S. lifted a ban on Mexican avocados that had been in place since 1914 to prevent a range of weevils, scabs, and pests from entering U.S. orchards.”

Here is why avocados in Mexico are in such high demand.

Credit: Unsplash

Aside from avocados being people’s favorite indulgent e.g., guacamole, avocado toast, it’s actually tough to grow avocados. Mexico’s temperatures make it ideal for growing avocados compared to anywhere else in the world. 

According to SFGate Home Guide, Mexican avocados “contain the highest oil content and taste the creamiest,” while avocados from the West Indies “have the least amount of oil but grow to the largest size. Now, Guatemalan avocados are also ideal because they are a combination of both Mexico and the West Indies. So according to that methodology, Mexico’s avocados seem to be the healthiest kind to eat. 

Lastly, Mexico’s weather is perfect for growing avocados because they “stand up to the coldest winter temperatures.” So you can see why there’s so much demand to get those Mexican fruits.  

People definitely have feelings over the violence and illegal tactics of the cartel who look to get those avocados by any means necessary.

Credit: @Eeeeeeemonster / Twitter

If the cartels succeed in hijacking the avocado industry in Mexico, it won’t be long till some of the avocados bought will benefit and fund the cartels.

The fight over avocados speaks to a larger issue of the food industry and how it’s affecting not just the economy but sustainability and the environment.  

Credit: @tsalagip / Twitter

While the cartels might be vying for the “green gold,” the matter of taking over land that does not belong to them and using it illegally on protected land shows how dangerous these tactics are hurting people’s lives and the environment. 

The fighting seems to be taking over all industries.

Credit: @elizabethgilcel / Twitter

It’s not just about drugs at all. 

How will the government deal with this issue if they can’t even handle the violence over drugs?

Credit: @brianeha / Twitter

If government agencies in the U.S. or in Mexico stop trade because of the illegal means to export avocados, it could have a drastic effect.

READ:  Apparently There Are Three Feet Long Avocados Called Long Necks And Like Please Take All My Money