12.2.21

What Happens When the Bitcoin 'Bubble' Bursts?

This article provides a brief high-level management briefing about Bitcoin tokens versus Blockchain technology. It also addresses the rampant speculation by investors in Bitcoin, the ‘bubble’ this has been created, and the consequences when the bubble finally bursts. Unfortunately, the downside of the current media feeding frenzy around the Bitcoin cryptocurrency is the way it is obscuring the new, innovative blockchain technology underpinning it.

About Bitcoin and ‘Bubbles’

  • ‘Bubbles’ occur when speculation drives an asset’s price tremendously above any realistic value.

  • Most financial ‘bubbles’ are often tied to novel new technologies, that then start to grow and swell in value as a result of constant media coverage.

  • Speculative investors don’t seem to care about the many ‘red flags’ signaling a bubble.

  • Bitcoin’s massive hike in value ticks almost all the boxes on the ‘bubble’ checklist.

  • The final stage in a ‘bubble’ is the breakdown. Just as the price rose without any apparent reason, it will eventually fall. That’s when people start panic-selling as the bubble bursts.

Governments all over the world are working to find a regulatory framework for cryptocurrencies that are currently bypassing their existing financial infrastructure. When the Bitcoin ‘bubble’ finally bursts, governments will move much more forcefully to regulate cryptocurrencies and the needed supporting infrastructure.


  • Blockchains are a novel approach incorporating a number of technologies that allow new, innovative ways to more securely create, transmit and store records of a variety of data transaction – including financial transactions using cryptocurrency tokens.

  • Bitcoin – This term is generally used to refer to the cryptocurrency token used by the public Bitcoin blockchain network to exchange value when a financial transaction takes place.


Consequences of Bursting Bitcoin Bubble

What could happen when the Bitcoin ‘bubble’ crashes. How bad will it be? How will it play out? Like all manias, when it finally comes to an end, many people who didn’t get out in time are going to be wiped out financially.

  • Most of Bitcoin’s estimated $1+ trillion market value is held by a relatively small number of the super-rich, criminal organizations, speculators, and early adopters.

  • Primary impact - A few thousand very wealthy people will simply become less wealthy.

  • Companies and coin owners will suddenly stampede to convert Bitcoin to nation state-sponsored currencies, like dollars or pounds.

  • A lot of Bitcoin companies – exchanges, wallet companies, etc. – will go out of business.

  • Many people borrowing money and going in debt to fund their speculative investment will get hurt and go bankrupt.

  • A number of major cryptocurrency and Blockchain technology companies will eventually emerge from the wreckage.

  • When the bubble pops, you will finally see much needed government regulation of the ongoing future cryptocurrency industry.


Selected Articles on Bubbles

The following are several selected articles on Bitcoins and ‘bubbles’ that you might want to read:



The fact that ‘Bitcoin’ is in a speculative bubble right now doesn’t mean that some form of cryptocurrencies and blockchain technology cannot ultimately succeed – it will. Financial exchanges, government regulations, and new more trusted and more stable cryptocurrencies will eventually emerge. We’re starting to see this happen.

* Do some more research on your own. Check out Coinbase Exchange, Etherium, Facebook’s Libra/Diem, Ripple/XRP, Cryptocurrency Government Regulations...

8.2.21

Bad Management Behavior and Practices

This article provides a brief overview of ‘bad management’ behavior and practices. I generally write about ‘best management’ practices, but it has become apparent in these times that an article highlighting bad management practices is much needed. The results of toxic bad management practices can reach far and wide in an organization inflicting long range damage.

Bad Management Practices

The following is a list of selected ‘bad management’ practices and pulled from dozens of recent articles.

  • Bad managers tend to surround themselves with people that look, think, and act alike. They fail to build a diverse management team that offers a broad skill set and different perspectives.

  • Bad managers focus on punishing employees who don’t perform as expected. While that may produce short-term results, it generally inspires resentment and lack of trust over the long term.
  • Bad managers often fail to accept the responsibility or consequences of their decisions. They always tend to blame somebody else when things go wrong.
  • Bad managers only feign interest in employee feedback, and won't actually act on what he or she hears.
  • Bad managers work diligently on satisfying short term shareholder desires, even it this works to the long-term detriment of the organization and its survival.
  • Bad managers generally do not to recognize employees for their accomplishments, but tend to only criticize their shortcomings.
  • Bad managers tend to regard employees as simply cogs in a machine (‘human resources’) instead of as members of a team striving to achieve a common goal.
  • Bad managers generally refrain from showing compassion, but rather instill fear and tend to assign blame.
  • Bad managers tend to put up communication barriers in order to be less accessible to their subordinates.
  • Bad managers who are micromanagers often end up damaging relationships with their employees, sending the message that employees are not trusted to get the job done.
  • Bad managers often use bullying tactics when dealing with their subordinates - one of the most demotivating, demoralizing and debilitating of all bad management practices.
  • Bad managers do not really understand management and don’t seem to grasp the changing management behavior and practices that are replacing older methods from the last century.

* Read Management in the 21st Century

 

Articles on ‘Bad Management’ Practices and Behavior

The following are some selected articles about ‘bad management’ practices and behavior that you might want to check out:




It seems ridiculous that virtually all organizations knowingly employ people in key management positions that are simply ‘bad managers’. To highlight how silly this is, would you expect hospitals to employ ‘bad surgeons’ ? Of course not. So why would so many organizations hire and continue to employ ‘bad managers’ to run their organization? It makes no sense.