What is Common Between Enron and Bitcoin?

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

My name is Vivek Sood, and I am an ex-ship captain and I specialise in global supply chain strategies for over 25 years. In 1997, I started my first SCM strategy project after I joined Booz Allen & Hamilton, the company that invented Supply Chain Management (SCM). I was blown away by the potential of SCM, and decided to learn and become one of the best in this field. I sought out the people who 'invented' SCM and requested their mentorship, and dedicated the next 5 years to working very long hours on some of the most challenging SCM projects. In 2000, I took the leap and co-founded Global Supply Chain Group. It was not an easy run - at that time, not many people knew what supply chain meant. Since then we have done a lot - but my current work is even more interesting. My current interests include studying the differences between those supply chain professionals who become the CEOs of their corporations, and those who do not. As more and more supply chain professionals get on the boards of directors of their companies, it is clear that some key factors separate those who make it to the very top, and those who remain at the tactical level - I am actively building exciting intellectual capital in this arena. What drives me to do this? And, why many of my clients also call me 'Mr Supply Chain'? You can get answers on my personal site - viveksood.com What are my professional qualifications and credentials? On my professional profile on LinkedIn https://www.linkedin.com/in/vivek/ you can find the details of over 400 projects covering over 85 countries and added value of over $1 Billion to our customers' bottom line. I have also written (or co-written) 4 seminal books, over 20 other major reports, 120 articles, and studied over 2000 supply chains in the last 25 years. Who are my clients, and what kind of work I excel in? You will need to contact me for that information - info@globalscgroup.com

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