As the US tries to control inflation, one item remains unmanageable. According to data from the Bureau of Labor Statistics (BLS), food has increased by 10.4% between December 2021 and 2022, while eggs top the list with an increase of 59.9% over the same period.
Other data, now presented by FRED (Federal Reserve Economic Data), shows that the situation is even worse, pointing out that the price of a dozen eggs has actually increased by 237% in the past twelve months.
Relative to Bitcoin, the dozen eggs appreciated 692% last year. We know this because the US government itself is monitoring the price of bitcoin eggs in some crazy experiment.
Therefore, we can conclude that Bitcoin’s volatility still prevents it from being used as a short-term store of value. However, everything changes when we look at the medium and long term.
Compared to January 2017, five years ago, the egg price fell almost 7 times from 0.00174841 to 0.00025084 BTC. In relation to the dollar, a dozen eggs in the same period is 2.4 times more expensive.
Using data from 2015, the oldest available, the FRED chart shows an even bigger difference, with Bitcoin gaining a lot of buying power.
Dozen Eggs Price Rise Becomes A Joke Among Bitcoin Investors
The sky-high price of dozens of eggs is worrying American citizens and authorities. For example, last Friday (20) the US police even warned about the trade in eggs from Mexico to the US.
“There has been a huge increase in the amount of banned foods, such as raw eggs and raw poultry, brought in by travelers from Mexico.”
The situation is so serious that US Senator Jack Reed has asked the Federal Trade Commission (FTC) to investigate cases of price gouging. In the letter, Reed even says that the dozen eggs had a peak of 138% in the past twelve months, plus another number.
Whether it is an increase of 59.9%, 138% or 237%, the fact is that citizens feel it in their wallets, which eventually caused jokes on social networks.
In a video posted on Tuesday (24), Bitcoin developer Jameson Lopp shows off a safe hidden in the headrest of a car seat. A dozen eggs unexpectedly appear in this vault.
“This can be useful if you live in San Francisco. Keep your valuables safe!”
This can be useful if you live in San Francisco. Keep your valuables safe! pic.twitter.com/WQaeq9kIqg
— Jameson Lopp (@lopp) January 24, 2023
Others went further. On Reddit, user Odlavso jokes about the alleged creation of an egg-backed stablecoin by a famous US company in the industry, Eggland’s Best.
“The price of eggs is out of control, with this new development and the power of blockchain you can buy your eggs today and enjoy them tomorrow”jokes the author of the post. “With the [criptomoeda] EGG, you can buy as many eggs as you want at the current prices and rest assured that in the future, after prices go up and everyone else pays 200% more, you can exchange your EGGcoins for real eggs.”
“I really hoped this was real”replied another user.
Finally, the shooting of the dozen eggs shows the effects of inflation generated by the rulers in recent years. Even though other goods and services have not grown as great, American citizens feel that the dollar is losing purchasing power.
The same thing happens in other countries and fiat currencies. So while Bitcoin is not a short-term solution, it has proven useful when looking at a longer time frame.
Source: Live Coins
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.