Despite Bitcoin surpassing the $100,000 mark in early December, Bloomberg still believes that it is not the best-performing commodity in 2024. The No. 1 spot belongs to cocoa beans.
Also according to Bloomberg, in just 12 months, cocoa prices have increased from $4,000/ton to $12,700/ton, equivalent to 217%.
Meanwhile, Bitcoin has only returned about 128%, from more than $41,000 per coin in January to $106,500 in mid-December. MarketWatch commented that Bitcoin's return becomes less impressive when compared to the price of cocoa.
In addition, the sharp increase in Bitcoin prices is largely due to investors' expectations of crypto-friendly policies that US President-elect Donald Trump has pledged to implement when taking office on January 20, 2025.
Bloomberg explains the sharp rise in cocoa prices as a result of reduced production, partly due to a prolonged drought in 2024, with temperatures above 40 degrees Celsius in West Africa - the world's largest cocoa growing region. This has led to a serious decline in supply.
West Africa also faces a soil health crisis. About two-thirds of the region’s land is degraded and fertilizer use rates are well below the global average, according to the International Institute of Tropical Agriculture (IITA).
Much of Africa's fertilizer is imported from countries such as Ukraine, Russia and Belarus. However, the escalation of the conflict between Russia and Ukraine has led to shortages and soaring prices.
Cocoa prices are expected to continue to rise through 2025 as supply continues to be affected by serious pre-existing issues, according to Trading Economics.
In Vietnam, representatives of the State Bank have repeatedly sent out the message: Bitcoin and other similar virtual currencies are not legal currencies and payment methods in Vietnam. The issuance, supply, and use of Bitcoin and other similar cryptocurrencies as payment methods are acts that are not in accordance with current laws.
