Bitcoin Is A Black Hole For Theoretical Models

For the purposes of this article, the pursuing theoretical epochs volition beryllium identified, described and applied to Bitcoin adoption, absorption and narratives: classical theory, neo-classical theory, systems theory, quality relations theory, powerfulness and politics, chaos theory, captious theory, inter-governmental relations and interpretive theory. Bitcoin volition beryllium addressed arsenic an plus people which spans each the theoretical models presented and 1 successful which alternate plus classes are being demonetized.

Part One: A Quick History Of Thinkers

Classical mentation clang course: In 1911, Frederick Taylor published the “Principles Of Scientific Management,” where, successful essence, helium projected that determination was one champion way successful bid to do, essentially, each things. The mentation was integrated into a assortment of real-world applications, astir notably, the accumulation of the automobile. As such, Taylor’s exemplary revolutionized the assembly of vehicles by reducing the idiosyncratic to a azygous task successful galore cases. Assembly lines grew successful popularity, accumulation costs decreased, nett margins accrued and humans got carpal passageway syndrome from having to insert the aforesaid bolt, connected the aforesaid part, for the aforesaid car, for a lifetime. This was, for each intents and purposes, classical mentation astatine its finest.

Classical mentation posits that organizations beryllium to execute an economical goal.

A machinist astatine the Tabor Company, a steadfast wherever Frederick Taylor's consultancy was applied to practice; representation from astir 1905. Source.

Neo-classical mentation clang course: “Neo” is conscionable a fancy connection for new, however, erstwhile coupled with “classical” (old), it is an oxymoronic phrase, i.e., the “new-old” theory.

A fewer decades aft Taylor’s theories became reality, Herbert Simon was publishing enactment and introducing coined presumption specified arsenic “saticficing” (a hybrid of the words “satisfy” and “suffice”) to explicate administrative behaviour erstwhile presented with hard decisions, constricted information, knowledge, resources oregon worse, according to “Classics Of Organization Theory.”

There were thinkers acold up of their clip during the neo-classical era, specified arsenic Mary Parker Follett, a classical thinker who raged against classical thought. In her mind, Follett believed that employees were reduced to being “cogs successful a wheel.” Follett projected that radical were not a portion of operation, arsenic noted successful “Classics Of Organization Theory.” She cracked the doorway unfastened for consequent theories, specified as systems theory and human relations theory. As neo-classical theory’s prima had set, the epoch was defined not by guardant thinkers specified arsenic Follett, but alternatively by organizations being seen arsenic self-contained islands which could beryllium finely tuned for maximum ratio and that humans were analyzers and determination makers for these islands.

Systems mentation clang course: Herbert Simon blurred the enactment betwixt neo-classical and systems theories, arsenic his interaction spanned some epochs. Within this era, each portion of the enactment could lone beryllium understood successful narration to the different parts of the system; this was aboriginal translated to “survival” of the system. Katz and Kahn (1966) introduced the satellite to the conception that the autarkic and isolated islands (organizations, business, etc.) were not truthful isolated aft all; these systems required energetic inputs and outputs (think earthy materials, parts, ideas) and erstwhile introduced, they would “energize” oregon “re-energize” the system. As a result, systems mentation opened the doorway to the thought that organizational systems, portion analyzable systems wrong themselves, were besides portion of a greater, outer system, per “Classics Of Organization Theory.”

Human relations mentation clang course: Human relations is besides known arsenic quality development, quality resources, quality capital, etc. During this era, thinkers specified arsenic Abraham Maslow (“Hierarchy Of Needs”) and Douglas McGregor (Theory X and Theory Y) took halfway stage; and the “motivation theory” epoch was born. While the “hierarchy” has been adapted implicit the years to see precocious tiers of “transcendence,” Maslow’s archetypal proposition, that quality “needs” had to beryllium met successful bid for radical to not lone survive, but thrive successful organizations and successful life, took disconnected similar a wildfire. The ocular beneath represents a simplified exemplary wherever each idiosyncratic starts astatine the bottommost and attempts to enactment their mode up.

McGregor took the information components of Maslow’s enactment and adapted them to a conception of management. McGregor introduced Theory X and Theory Y. Simply put, radical who presumption the satellite done a “Theory X” mindset presumption humans arsenic unmotivated. Theory X proposes that humans debar responsibility, person small ambition, are lazy and arsenic such, rewards and punishments are required by managers.

If you’re nodding your head, you astir apt presumption the satellite done a Theory X mindset, oregon had a supervisor who did, and arsenic such, if you’re a manager oregon supervisor, you astir apt micromanage your employees; and if you were micromanaged, you mightiness person had a supervisor who saw you arsenic lazy, unmotivated oregon lacking ambition. This is besides wherever the operation “carrots and sticks” took disconnected successful the absorption world.

Theory Y is different. A Theory Y mindset proposes that humans are intrinsically motivated and arsenic such, fixed that the quality is doing thing fulfilling, the enactment itself is the reward; nary carrots oregon sticks needed. One could reason that the fictional quality Ted Lasso fundamentally views the satellite done a Theory Y filter. Human relations mentation presented to the satellite that individuals person an important relation successful an organization. The thought of suggesting that you mightiness person the close radical but that they could besides beryllium successful the incorrect spot took root.

Power and authorities mentation clang course: This theoretical epoch should truly beryllium entitled “power, authorities and influence” but we can’t spell backmost successful clip and re-coin it, truthful present we are. John French and Bertram Raven identified 5 forms of power, however, the underlying model of the mentation truly questioned the quality betwixt powerfulness and leadership. I’m definite determination is an arsenal of examples that volition flood your caput erstwhile they are listed successful a moment; delight cognize that it’s good to intermission and bespeak (cringe) arsenic you callback unspeakable (traumatic) enactment of your past, but erstwhile you drawback retired of it, let's continue.

Reward, expert, referent, morganatic and coercive powerfulness were foundational concepts for this theoretical era. This is besides the epoch wherever theorists specified arsenic Karl Marx attempted to picture what they perceived arsenic exploitations of the mediate people done the “exploiters” (bourgeoisie) and the oppressed (proletariat).

Chaos mentation clang course: If you person been progressive successful a restructuring, simplification successful unit oregon “right sizing,” you tin empathize with the disequilibrium created arsenic 1 strategy breaks, experimentation commences and a caller strategy is formulated oregon reformulated. Kurt Lewin acknowledged this erstwhile helium reminded the world assemblage that profound alteration occurs erstwhile a full strategy changes. Chris Argyris introduced concepts specified arsenic double loop learning and models specified arsenic the ladder of inference.

In chaos theory, determination was a important absorption connected the process being much important than the structure, arsenic outlined by Cornell University Professor Steven Strogatz successful “Nonlinear Dynamics And Chaos.”

Critical mentation clang course: In the much caller era, Jürgen Habermas projected that connection shaped life, per “Classics Of Organizational Theory.” As such, reasoning models and the usage of verbiage could (would and had) shaped the world. Robert Denhardt proposed that citizens distrusted bureaucrats and arsenic such, distrusted government

Critical mentation opened the doorway for quotes specified as, “We cognize they are lying, they cognize they are lying, they cognize we cognize they are lying, we cognize they cognize we cognize they are lying, but they are inactive lying,” attributed to Elena Gorokhova. Critical mentation projected that humans were successful struggle with “the self” and that a dependable should beryllium fixed to those who cannot beryllium heard.

Inter-governmental relations (IGR) mentation clang course: IGR was the epoch of Roosevelt and Reagan arsenic good arsenic policies specified arsenic The New Deal, societal information and welfare, according to Victor Pestoff; arsenic good arsenic antagonistic measures specified arsenic a simplification of nationalist grants to states and an effort to abstracted states from the national government. In the astir elemental sense, IGR works to explicate the narration betwixt antithetic “governments” wrong 1 country. Within the U.S. for example, determination are a assortment of “governments” which beryllium and work, immoderate harmoniously, some, well, not truthful much, arsenic Pestoff explained.

Interpretive mentation clang course: Congratulations, you’ve reached the extremity of the abbreviated clang course; cognize that each of these sections person galore much theorists, researchers and worldly to screen if you’re interested. Interpretive mentation tin beryllium a spot of a caput bend, and with constricted characters, I’ll bash my champion to support it simple. Get your caput acceptable for perceiving the satellite done “The Matrix.”

There are 3 theorists we tin absorption connected to assistance clarify the confusion. Emmanuel Kant, Alfred Schultz and Peter Berger; again, determination are galore more, but we’ve got to enactment connected track. Kant projected that the eventual world was held wrong the tone oregon an thought much than what was perceived to beryllium that idea; arsenic specified conversations of morality grew, arsenic is explained successful “The Social Construct Of Reality” and “Classics Of Organizational Theory.”

Schultz saw the satellite done a lens of understood meanings, which were subjective, per “Classics Of Organizational Theory.” For example, 2 radical could witnesser the aforesaid lawsuit and travel to antithetic “realities” of what had occurred based connected their perspective, experiences and biases. Finally, Berger worked to describe the social operation of reality. Avid readers who person explored Miguel de Cervantes’ work, “Don Quixote,” volition grasp this conception quickly. A perchance value-free nine (social science) gained traction during this era.

These theoretical models, from my perspective, volition play a relation successful however Bitcoin and Web 3.0 volition beryllium understood for generations to come; not lone successful an world sense, but successful what nine perceives to beryllium their reality.

Part Two: Dear Bitcoin, Welcome To The Theoretical Model Universe

One could marque the statement that astatine each epoch presented above, Bitcoin was bound to person taken root. From a classical exemplary and a “one champion way” solution to the wealth problem, aboriginal theorists whitethorn suggest that Bitcoin is the astir rational economical rule and arsenic such, the acceptable structural arrangements and behaviors coded into the bundle and algorithms execute the economical goals of the world. Bitcoin arsenic cleanable wealth addresses the request for an alternate fiscal strategy successful the future.

Neo-classical theorists could suggest that Bitcoin “satisficed” its mode done the aboriginal years. Soft and hard forks, the Lighting Network, Taproot, etc., are examples of the Bitcoin ecosystem coming to the realization that it is nary longer a self-contained land and that the Bitcoin strategy exists wrong a strategy of systems, immoderate which assistance and immoderate which effort to compromise the protocol. I comprehend this arsenic those kids who discovered a no-name set agelong agone and, erstwhile the set became popular, songs were interpreted successful alternate ways that what the archetypal followers believed. The caller interpretations frustrated aboriginal adopters and successful the end, maturation occurred careless of the archetypal adopter’s perceptions and intentions.

Systems theorists mightiness posit that Bitcoin’s adaptations were integral to the endurance and adoption of the protocol connected a planetary scale. Theory X thinkers mightiness presumption Bitcoin arsenic a solution to distrust, portion Y theorists whitethorn supply a counter-thesis and suggest that Bitcoin represents worth from the truest and purest of forms.

Human relations theorists whitethorn suggest that individuals progressive with the improvement and continued enactment of the protocol correspond existent people, who, successful turn, location the astir important facet of the system; survival. Eventually servers volition request repair oregon upgrade, integration bundle and hardware volition germinate and experiences volition beryllium shared; each coordinated by humans.

Power volition beryllium garnered successful a assortment of ways, done morganatic means, referent belief, reward incentives, coercive tactics oregon expertise via commentary. Class systems whitethorn change, immoderate successful powerfulness erstwhile whitethorn suffer their soap boxes oregon swords and others who had nary power whitethorn summation leverage. Learning volition hap and those who use a reflexive oregon double-loop attack whitethorn person a competitory advantage.

Critical theorists whitethorn suggest that Bitcoin’s commencement was from an inherent distrust of government. Perhaps that, erstwhile the past of Bitcoin is written from a theoretical perspective, they’ll reason that it each began with theorists specified arsenic Denhardt.

IGR theorists mightiness reason that existent Bitcoin adoption (or failure) laic wrong however governments, astatine each levels, adopted oregon shunned the technology. How bureaucrats had to person conversations astir the exertion and however the imaginable adoption oregon rejection would change section municipalities, counties, states and the state forever.

Finally, interpretive theorists mightiness bring into absorption the trouble immoderate person successful defining what is reality; arsenic such, 1 hurdle for aboriginal adopters and skeptics to flooded is rooted successful a deeper question of their ain perceived reality.

In immoderate respects, each perspectives elaborate supra would beryllium correct. In others, they are each profoundly flawed erstwhile examined individually. Greater thinkers than myself volition soma retired wherever Bitcoin “fits” into the theoretical models and successful past good into the future.

Part Three: Bitcoin Engulfing History, Assets And Theoretical Modeling

A NASA technologist erstwhile tried to explicate blackholes to me, from my position it was akin to my failed attempts astatine explaining Bitcoin to a great-grandparent. One facet of the achromatic spread conversation, however, stuck with me: the thought that the gravitational propulsion of a achromatic spread is truthful almighty that adjacent airy cannot flight it. That conception was profound to me; somewhat achy and horrifying, if I’m being honest.

Once that conception settled and I came to grips with it, I had questions flooding my consciousness. Getting orangish pilled oregon wrapping one's caput astir Bitcoin is simply a akin acquisition for some, I propose. When skeptics zoom retired from the day-to-day terms fluctuations and look longer term, adjacent with 80% oregon much terms swings, determination has been nary amended spot to store your wealthiness successful the past decade.

This is simply a profound concept, but again, we are early. Plumbing, electricity, automobiles and the net were each fads astatine 1 time. Without Keynesian economists determination to supply a flood of currency oregon a banal speech deciding to “halt trading” erstwhile an plus “moons,” determination volition beryllium monolithic moves successful some directions arsenic the marketplace determines the value; this is however an plus should enactment successful a escaped system during terms discovery.

There person been countless articles, opinions, videos and peer-reviewed papers that picture however Bitcoin is presently “eating” different plus classes; a theoretical achromatic spread of the concern world. A elemental illustration of what could beryllium engulfed would beryllium the enslaved markets. Yet, the existent property market, arsenic 1 thinks a spot beyond what is close successful beforehand of them, is wherever the beingness could statesman to autumn into a proverbial Bitcoin achromatic spread decease spiral.

In the simplest sense, see an concern spot successful a desirable location; thing that could beryllium purchased, renovated and listed for rent. This property, for the owner, mightiness person an eventual (potential) extremity of being an inflation-adjusted gross watercourse for the proprietor for years to come. A spot similar the 1 described would past pull not lone section investors, but nationalist and planetary investors.

As 1 looks onto the horizon, if bitcoin becomes the store of worth immoderate foretell it could be, immoderate investors whitethorn question if taking connected the hazard with a spot is worthy it. Could an capitalist not simply store their worth successful bitcoin and arsenic such, would bitcoin not person conscionable “eaten” a portion of that existent property market? Cue the achromatic spread reference. This is what folks mean erstwhile they accidental Bitcoin is “demonetizing” other assets. I suggest Bitcoin is besides “dematerializing” much than conscionable fiscal institutions arsenic well; it's conscionable a substance of time.

Would location prices not stabilize and go much affordable for residents who really wanted (needed) to unrecorded successful a location that wasn’t connected an investor’s radar? What astir gold, metallic oregon different commodities? Wouldn’t, couldn’t oregon shouldn’t stableness travel aft speculators person been drawn to different asset?

Yes, “shouldn’t” is simply a loaded word. I walked into the bureau of a mentor once, who happened to besides beryllium a pastor. I had excuse aft excuse of wherefore I should have done this and I shouldn’t have done that; successful truth, I was a spot of an idiot years ago, little truthful now, but not by much. He stopped maine successful my tracks and said, “Son, you’re ‘shoulding’ each implicit yourself; thou shalt not should. Do it, oregon don’t bash it, but unopen up astir it already.”

So, I agree, past volition play retired and we volition person commentary from each space astir however thing “should have” oregon “should not have” occurred, but successful the end, it volition person occurred oregon not occured; but Bitcoin volition inactive beryllium there. The protocol volition outlive america all.

Bitcoin volition not theoretically engulf oregon demonetize gold, silver, bonds, existent property and a assortment of different concern avenues; bitcoin is demonetizing parts of these plus classes, now. The aforesaid tin beryllium said successful respect to emblematic “savings” accounts astatine accepted banks.

Sure, accepted thinkers and folks who mightiness adjacent hatred Bitcoin, the full crypto abstraction oregon genuinely despise the newly-minted crypto millionaires and billionaires, mightiness beryllium hard pressed to rationalize .01% versus 9.0% involvement oregon much connected stablecoins. With debit cards becoming disposable that directly nexus to stablecoins, wherefore does anyone request a debit paper from a accepted bank? Third-party applications person already built apps that let customers to use bitcoin arsenic collateral to concern purchases. Let the engulfing commence.

One facet that the world assemblage whitethorn wrestle with successful the aboriginal mightiness beryllium wherever to categorize Bitcoin successful respect to its origins. In a macro presumption of history, this whitethorn beryllium trivial, but academics basal their careers connected “coining terms,” and YouTubers basal their reputations connected “calling tops;” determination is simply a decent magnitude of quality superior astatine involvement with this trivial endeavor.

Yes, the 2008 fiscal situation was the imaginable straw that broke the camel’s back, but is the root of Bitcoin some much and little analyzable than this azygous lawsuit astatine the aforesaid time? Let’s spot if we tin “label” Bitcoin according to those theoretical models elaborate supra by asking immoderate questions.

Does Bitcoin, successful immoderate respects, autumn into a “one champion way” exemplary of Taylor’s “Scientific Management” and classical theory? Has the crypto assemblage begun to recognize that Bitcoin is not a standalone island, and arsenic the abstraction matures, bash we not statesman to spot however immoderate applications “satisficed” and iterating into maturity? Can anyone abstracted the speech of Bitcoin from spot and distrust? Bitcoin indispensable autumn into the classical oregon neo-classical arenas then, right?

Are McGregor’s Theory X and Theory Y models much applicable contiguous than they ever person been before? What astir Maslow’s “Hierarchy Of Needs”? Bitcoin articles person already been published correlating Maslow’s work. Has Bitcoin go a vas successful which each layers of the model, from physiological needs to self-actualization, see Bitcoin? If that is the case, Bitcoin should remainder successful HR theory, 1 could argue.

What astir politicians and bureaucrats? Are we lone a fewer years retired from powerfulness and authorities mentation becoming halfway stage? Are we not already successful the midst of a speech of the exploiters and the oppressed? Doesn’t Bitcoin effort to lick this issue? How astir rewards, coercion, legitimacy, referent oregon expertise successful the crypto community? Who has gained traction arsenic an intelligence thought person successful the Bitcoin space? It seems arsenic if Bitcoin has taken implicit powerfulness and authorities arsenic well.

Have communities not already been thrown into disequilibrium; are existent fiscal bedrocks present connected unstable ground? Isn’t Bitcoin presently successful the “experimentation” signifier of chaos theory? Have protocols not already iterated, person double-loop learning models not already been (and proceed to be) applied arsenic developers accommodate and innovate? Wasn’t the archetypal thought of Bitcoin begun with a distrust of the government? Chaos theorists are nodding their heads successful amusement.

Critical mentation is successful play arsenic well, giving a dependable to those unheard, oregon unbanked successful this scenario; this is simply a goal, is it not? Haven’t governmental relationships already taken basal successful immoderate arenas, oregon been formed retired successful others? And hasn’t the conception of “real” versus “virtual” assets already divided the globe arsenic the satellite grasps with what is world and cognition erstwhile considering bitcoin arsenic a viable inflationary hedge? So, which is it?

I would suggest that Bitcoin has roots successful each of the theoretical models simultaneously; arsenic such, Bitcoin arsenic a whole, has origins successful each and nary astatine the aforesaid time. Bitcoin is simply a achromatic spread erstwhile explored done the lens of demonetizing alternate plus classes, but Bitcoin is besides a achromatic spread of theoretical models and everything successful its path. Bitcoin unsocial solves problems humans haven’t adjacent considered yet.

I suggest that Bitcoin volition propulsion into the vortex each world fields of study; from science to business, and transgression justness to nationalist administration. All academics volition person their erstwhile unchangeable and tenured footings, loosened by a changing landscape, 1 that includes Bitcoin successful immoderate manner. If world communities are not discussing Bitcoin, they should be.

Colleagues of excavation spot the organizational theoretical models (classical, neo-classical, systems, HR, powerfulness and politics, chaos, critical, IGR and interpretive) chronologically, similar chapters successful a publication oregon a timeline. I excessively was trained this way. For generations, this was an accepted and due operation of reality. Bitcoin has bent this reality. What came archetypal oregon 2nd connected a linear theoretical continuum, present occurs simultaneously, violently and chaotically, portion maintaining uniformity, patterns of behaviour and rationality.

The world is some carnal and virtual; existent and imaginary. As the satellite becomes not lone alert of the space, but chooses to clasp oregon refute it, it is lone a substance of clip earlier theoretical modeling falls into the increasing achromatic spread of what Bitcoin’s scope consumes.

Bitcoin is simply a abstraction that tin beryllium some rational and irrational depending connected one's perspective; breathtaking and boring; innovative and traditional; arsenic good arsenic azygous and disorganized, concurrently.

When asked if classical mentation tin beryllium applied to Bitcoin, the reply is yes and no. Neo-classical theory, the same; systems theory, ditto; and truthful on. The achromatic spread of Bitcoin has gone beyond demonetizing assets; the abstraction has developed a world successful which opposing realities, perspectives and adjacent a disbelief successful the full beingness of the space, tin coexist. It is lone a substance of clip earlier wide conversations of Bitcoin infiltrate astir each facet of academia, theoretical models included.

Additional References

1. Berger, P. L., & Luckmann, T. (1991). “The Social Construction Of Reality.” Penguin Books.
2. Denhardt, R. & Catlaw, T. (2015). “Theories Of Public Organization.” Stamford, CT: Cengage Learning.
3. Harmon, M. & Mayer, R. (1986). “Organization Theory For Public Administration.” Boston: Little, Brown.
4. Lewin, K., Heider, F., and Heider, G. M. (1966). “Principles Of Topological Psychology.” New York: McGraw-Hill Book Co.
5. Marx, K. (1996). “Das Kapital” (F. Engels, Ed.). Regnery Publishing.
6. Maslow, A. and Frager, R. (1987). “Motivation And Personality.” New York: Harper and Row.
7. McGregor, D. (1960). “The Human Side Of Enterprise.” New York: McGraw-Hill.
8. Pestoff, V. (2018). “Co-Production And Public Service Management: Citizenship, Governance And Public Service Management.” New York, NY: Routledge.
9. (PDF) “The Bases Of Social Power.” ResearchGate. (n.d.). Retrieved January 12, 2022.
10. (PDF) “Scientific Management Theory And The Ford Motor Company.” (n.d.). Retrieved January 8, 2022, from Shafritz., Shafritz, J., Ott, J. & Jang, Y. (2016). “Classics Of Organization Theory.” Australia Boston, MA: Cengage Learning.
11. Strogatz, S. (2015). “Nonlinear Dynamics And Chaos: With Applications To Physics, Biology, Chemistry, And Engineering.” Boulder, CO: Westview Press, a subordinate of the Perseus Books Group.
12. Taylor, F. (1998). “The Principles Of Scientific Management.” Mineola, N.Y: Dover Publications.

This is simply a impermanent station by Dr. Riste Simnjanovski. Opinions expressed are wholly their ain and bash not needfully bespeak those of BTC Inc oregon Bitcoin Magazine.