How will the adoption of bitcoin solve the problems of large corporations?

In 2017, most market experts had no doubts about this, however,The crypto winter, increased regulatory pressure, as well as the hype around stablecoins and national cryptocurrencies have cooled many minds.

However, no one is going to write Bitcoin off. This is evidenced by the confidence of younger generations, the increased interest of institutions and positive forecasts for 2020.

Analyst Chris Dannen is also sure of this -co-founder of the New York investment crypto company Iterative Capital and CEO of the i2 Trading trading platform. The expert states that almost all the world's corporations need Bitcoin, but just don't realize it yet. Read the material on what his opinion is based on.

What could make corporations massively accept Bitcoin?

During the cryptocurrency boom in 2017 oncryptoconferencing was not crowded. They were visited by wealthy investors and technology giants, various companies massively announced revolutionary blockchain projects and easily collected millions of dollars of investments during the ICO.

Alas, most of the “promising” ICOs turned out to be a scam, the rate of digital assets collapsed, cryptocurrency companies began to experience difficulties, and the hype around cryptocurrencies subsided significantly.

In 2019, the conference scenario changed - underUnder the auspices of blockchain technology, ineffective corporate products were promoted, scammers sold worthless tokens, and crypto companies sought capital. Revolutionary projects were not announced at these conferences, and representatives of large technology companies practically did not attend them. However, Bitcoin needs both, because it is almost impossible for a new technology product to achieve mass adoption without the attention of major players.

Nevertheless, although not at a super-fast pace,The crypto industry continues to develop, and institutional investments in Bitcoin are only growing. It is unlikely that 2020 will be a turning point and will promise us a massive adaptation of digital money. For large companies, any technological change is always a painful procedure. To switch to using coins, corporations will have to change the automation of financial transactions, reconfigure established business processes, spend a lot of time and money on developing new software and retraining employees.

The impetus for such a scenario can only beextremely serious problem requiring immediate resolution. Is there a problem now? Yes. It’s just that it doesn’t strike the eye so clearly that the companies go all out in search of a solution. What kind of problem is this and how can Bitcoin solve it?

Corporate Collapse Risks

First, let's take a look at these numbers:

• In 1958, the life cycle of large companies averaged 61 years. In 2016, this indicator stopped at 24 years. For 58 years, the viability of influential corporations has decreased almost threefold.
• US citizens spend about 750 million hours a week on their jobs. About half of this time brings no value.
• The average return on shares of 25% of the largest public companies in 1965 was 12.9%. By 2015, profitability fell to 8.3%.
• The number of work responsibilities increases astimes faster than paying for their implementation. According to Aaron Dignan's new book, Brave New Work, from 1976 to today, productivity growth has outpaced wage growth by 5.9 times.

Formerly flagship companies such as BordersGroup, Nokia and Blackberry, failed to cope with the realities of today's economy and maintain market position. Even giants such as Microsoft are not able to increase employee salaries, despite the huge number of analysts, many expensive business consultants and a team of prominent graduates from prestigious universities that work there.

Why contrary to the appearance of so manyAre modern technologies worse than 50 years ago? The fact is that digital technologies have changed all areas of activity so much that long-term planning, the introduction of complex business processes and a hierarchical management model have begun to bring many times less dividends. Previously, the foundation for the success of large organizations was built on these three pillars, but today they are losing relevance.

Red tape and complex corporate hierarchyhinder the development of modern business - non-standard, fast and unpredictable. Large companies began to turn into a clumsy bulldozer and did not have time to respond to a volatile market.

In the past decade, corporations that have succeededrealize in time, began to change the principles of work and reorganize the business in order to reduce the level of hierarchy and red tape, introducing effective and simple digital technologies. This helped them increase profitability, avoid the unenviable fate of their many competitors and prevent premature collapse. Someone restructured their work less, some more, but no one has achieved perfection - until now, problems have persisted in almost all corporations, as the figures above clearly show. Their main principle of work has remained the same.

Large organizations need to become even moreflexible, otherwise after twenty years from all of today's “tops” there may not be a trace. But what kind of “medicine” can help the whales of the market in the new decade, when the physical world is digitized even more, and the speed of the business increases?

The solution is switching to working with a dual OS

In theory, large and “sluggish” companieswill be able to keep up with the realities of modern business if they switch to a new management model proposed by Harvard Business School professor John Kotter. He developed the original concept of “dual operating system companies”, which is based on a competent combination of two aspects:

• The traditional hierarchical management model, which is still used in all top companies.
• Networks of “supertempos” - highly specialized freelance professionals of the highest class.

Supertempos are turned to when you need to decidesome specific task. These are temporary employees who work quickly and efficiently and then move on to another project. Their fees typically start at $2,500 per day, and they earn around $600,000 per year. This may seem like a lot of expense initially, but it can save millions of dollars on consultants and avoid lengthy analytical and organizational processes.

A large company can create a whole network ofhigh-quality supertemps that will be accessed as needed. They solve problems faster and more efficiently than the departments of full-time employees, and if necessary, they resort to the help of their own teams. Some of them can even work as free volunteers.

Thus a large company with two operating systems buildstheir work on the basis of both models, taking from each advantage and eliminating the disadvantages. The hierarchical system will provide quality planning, budgeting, recruitment, evaluation of the effectiveness of business processes and so on. At the same time, in those places where the hierarchical model gives weakness - in the timely identification of important dangers and great opportunities, the rapid development and implementation of strategic initiatives, the introduction of innovations - a network of trusted super-rates will be taken up.

According to Harvard professor, the ratiobetween full-time and non-staff employees should be somewhere around 10% / 90%. That is, only a tenth of the specialists should sit in the office and work on the basis of a hierarchical model, the rest are carefully selected freelancers working in irregular schedules with unstable salaries.

Everything looks great, but it’s not clear whathere is bitcoin. The fact is that there are several problems in switching to a concept with a dual operating system. One of them is related to the technical implementation of salary and remuneration payments. Paying to full-time specialists is simple - you have a list of regular employees and the amount of monthly salaries. Once a month, you transfer the same amount to bank cards. However, when it comes to a network of supertemps, the situation is completely different. Especially if we are talking about a large company with a large army of freelance specialists.

SuperTemp rewards depend on volume andtype of work they do. Their functions are non-standard, they do not work every day and not always from morning to evening. Moreover, the number of freelancers involved is constantly changing, as are their names - in July you may need Phil, and in August Peter and Lucy. Now imagine that there are thousands of these Peters, Lucy and Filov, they live in countries with different national currencies, work in cities where you do not have an office, perform different functions all the time and require quick payment after the fact. To organize the payment process for all these people, you will need an army of HR managers with, again, a hierarchical model of work. An optimal alternative is the transition to a completely new type of financial infrastructure. And here Bitcoin comes to the rescue.

Bitcoin as a tool for implementing the concept with a dual OS

Ideologically and technically, the Bitcoin network isdecentralized structure without leaders and hierarchies. It fits perfectly into the concept of any non-hierarchical organizations - such as a supertemp network.

• Any employee in any country (almost) can easily create a secure Bitcoin wallet without the need to receive any permissions.
• Specialists can receive payment in BTC at the national currency rate and with the help of specialized platforms they can exchange cryptocurrency for fiat at any time.
• Companies do not need to fill in a lot of papers andMake expensive and slow international payments through banks. Bitcoin allows fast transactions of any scale anywhere in the world. Including in those countries where the work of banks is difficult.
• Bitcoin simplifies financial reporting, as all transactions are written to the blockchain by default.
• There are situations when some kind oftasks allocated a specific budget. Issuing a corporate credit card to each employee and writing out expenses permits on paper is long and expensive. However, corporations could solve this problem with Bitcoin at the software level. For example, to develop a customized crypto wallet with a multi-signature function, allowing certain freelance employees to use specific amounts from the budget to implement specific goals.
• The crypto industry continues to evolve, and inIn the coming years, corporations will be able to conduct bitcoin transactions through the Lightning Network or similar channels. This will provide instant and free transfers to and to anyone.

So, we see the technological chain, which boils down to the immediate need for bitcoin and / or other liquid digital assets. So:

• Due to bureaucracy and a complex hierarchical model, it is difficult for large companies to keep up with the growing business sector and digital innovation. Therefore, they need a restructuring of the work.
• The transition to a dual OS model can improve the situation, when 10% of employees work in an office hierarchical system and the remaining 90% are freelance specialists.
• Using a dual OS model today is verydifficult and expensive without switching to a digitized financial infrastructure. At the moment, it is possible to provide profitable and high-quality monetary relations with freelance specialists only through cryptocurrencies.

Big companies need digital assets,they just don’t realize it yet. Nevertheless, the problems that they have encountered in the coming decade will require new solutions. Bitcoin has every chance of reaching the critical corporate compartment.

Some large corporations are already startingadapt their activities to work with a dual OS, without even realizing it. They are attracting more and more freelance specialists, not realizing how widely such a structure can scale. And as their activities expand in this segment, the integration of cryptocurrencies becomes only a matter of time.

</p>

Rate this publication