What is Common Between Enron and Bitcoin?

What is Common Between Enron and Bitcoin?


Vivek Sood




January 8, 2019

I was at a Melbourne Cup luncheon yesterday, and someone asked me why I do not write about Bitcoin.

On my mobile, I showed them a paragraph from my book THE 5-STAR BUSINESS NETWORK written in 2013, where I talk about the emerging Digital Currency Networks.

But the truth is that given the attention Bitcoin has garnered over the past 5 years – I have barely written anything more on it. During the period the price of Bitcoin has been very volatile, and every move has been accompanied with millions of words written by the mainstream press as well as the more respected blog writers.

Take a look at the 5-year graph below:

The value of a single bitcoin rose from nearly 0 in 2016 to over 25,000 AUD in late 2017. Since then it has been very volatile, now relatively steady in the range around AUD 9,000 mark.

Lots of people came on TV and explained all the reasons why it was where it was that point in time.

Braver people made predictions too. Some even proved to be right for a period of time. Some of those reasons sounded even plausible.

Many people asked me for my opinion, and I always referred them to Enron. I explained that around the start of the century when Enron was in a similar place, people in parties would ask my view on it.

Enron was the darling of the quick buck brigade at that time. Some people even made money on it. Much more money that anyone would ever make by flipping houses, or companies.

But there were at least two big reasons I did not offer an opinion:

  1. I never give any investment advice, or offer an opinion that could be construed as an investment advice.
  2. I did not understand Enron

Many friends who knew that I scored the only 100% mark ever in the sloggiest finance course in my MBA would not believe either of those too reasons. And, they would press me for an opinion. Perhaps they had money riding on it.

Some, the wiser lot, even took my unwillingness and inability to offer a point of view as a sign, and made the decision which turned out to be right for them. A few even thanked me. Yet, I claim no credit for saving them a buck, or two.

I was merely stating a fact –

I Don’t Understand It.

And, that is all I have to say about the Bitcoin.

If you want to know about more things that I do not understand – feel free to offer suggestions.


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Vivek Sood

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  • Cryptocurrency, an encrypted, peer-to-peer network for facilitating digital barter, is a technology developed years ago. Bitcoin, the first and most popular cryptocurrency, is paving the way as a disruptive technology to long standing and unchanged financial payment systems that have been in place for many decades. While cryptocurrencies are not likely to replace traditional fiat currency, they could change the way Internet-connected global markets interact with each other, clearing away barriers surrounding normative national currencies and exchange

  • Technology advances at a rapid rate, and the success of a Bitcoin technology is almost solely dictated by the market upon which it seeks to improve. Cryptocurrencies may revolutionize digital trade markets by creating a free flowing trading system without fees. A SWOT analysis of Bitcoin is, if conducted, would illuminates some of the recent events and movements that could influence whether Bitcoin contributes to a shift in economic paradigms.

  • Crypto fanatics see it as a totally new way of doing all kinds of business. In theory, costs could lower without a central middleman doing work of keeping transactions, and charging for it. Venture capitalists, banks and stock exchanges have thrown a lot on capital investment into developing blockchain technology, while large retailers such as Wal-Mart Inc. are experimenting with using blockchain for ensuring safety.
    Banks are even considering issuing blockchain-based official currencies. And other types of blockchain emerged, often using their own cryptocurrencies to facilitate transactions. The most well known is the ethereum blockchain, which is also sometimes referred to as a platform for so-called smart contracts.

  • The initial price of bitcoin, set in 2010, was less than one cent. Now it has gone past $16,000. And it is the only blockchain project that has crossed over into mainstream recognition so far. Additionally, its value has increased more than 1,000 percent in just the past year. The vast amount of speculative investors and the expectations of more have contributed to the pricing surge. Various organizations and other derivatives trading exchanges are planning to offer bitcoin futures contracts, which possibly increased bitcoin’s appeal.

  • A very interesting and information-rich article Vivek. While digital forms of money are not liable to supplant conventional authorized cash, they could change the way Internet-associated worldwide markets interface with one another. Bitcoin, the first and most famous cryptographic money, is making ready as a troublesome innovation to long-standing and unaltered budgetary installment frameworks that have been set up for a long time.

  • A Bitcoin innovation is exclusively managed by the market whereupon it looks to improve. Cryptographic forms of money may alter computerized exchange advertises by making a free-streaming exchanging framework without expenses. A deeper investigation of Bitcoin, as also directed in this article, reveals that it would enlighten the ongoing occurrences and developments that could impact whether Bitcoin adds to a move in budgetary models.

  • Investors, crypto devotees, banks, stock trades, retailers like Wal-Mart Inc. have tossed a ton on capital speculation into creating blockchain innovation while many are trying different things with utilizing blockchain for guaranteeing future security. Banks are notwithstanding considering issuing blockchain-based authority monetary standards. The most outstanding is the ethereal blockchain, which is likewise once in a while alluded to as a stage for supposed shrewd contracts.

  • The underlying cost of bitcoin, set in 2010, was short of what one penny. Moreover, its esteem has expanded in excess of 1,000 percent in only in the previous years. The huge measure of financial specialists and the desires for more have added to the estimating flood. Different associations and different subsidiaries exchanging trades to offer bitcoin prospects which perhaps expanded bitcoin’s magnetism.

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