Rajat Soni, CFA,recently highlighted that the cost of beef per kilogram has surged by 200% when priced in US dollars since 2011, yet in the same timeframe, it has plummeted by 99.999% in terms of Bitcoin. This phenomenon underscores a broader pattern where commodity prices continue to escalate in fiat currency terms, while conversely trending towards negligible amounts when measured against the burgeoning value of Bitcoin.

The price of beef per kilogram has indeed increased since 2011. As of 2023, the wholesale price range for US beef is between $7 and $12.6 per kilogram​​. Additionally, it is predicted that the export price for 2023 will be around $8.73 per kg and for 2024 it will be $9.33 per kg​​.

In contrast, the price of Bitcoin has shown a remarkable appreciation over the years. The current price of Bitcoin is approximately $37,000 (Note: this article was written and scheduled 11/26/2023).

If we consider that in 2011 Bitcoin was worth a fraction of a dollar, its value has indeed increased enormously, which would mean that the price of beef per kilogram in terms of Bitcoin would have decreased significantly, aligning with the claim of a 99.999% drop.

The dramatic increase in Bitcoin’s value compared to the US dollar is a testament to the cryptocurrency’s volatility and growth as an asset class over the past decade. It also illustrates the changing dynamics of purchasing power, where traditional commodities like beef can have drastically different cost trajectories when priced in digital currencies versus fiat currencies.

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