Survival – The Remodelling Of Legacy Businesses & Blockchain Adoption

The Rise Of The New Economy

Many of us are already aware of how fast the world is changing, in regard to finance, business, and communication. Whether you believe it or not, the world will eventually be run on top of blockchains. Sounds like quite a bold statement at first. However, take a look at what is currently taking place. This is all happening without an established regulatory framework. As I mentioned some time back, the acceptance of Crypto by giant global companies was a “signal”. These companies are not going to eat humble pie and u-turn on their decisions. They chose to rather wait for a clear green light. Things might not be at the stage of clarity for the average person, but I can guarantee you that these companies have some insight into what is going to take place in regard to regulation and other aspects.

A very important practice of the wealthy is to avoid high risk and rather acquire modest gains. They have too much at risk. Making a fatal business move will have devastating effects that they would rather avoid, despite the potential reward.

These entities and individuals will still endeavor to be as early as possible, but not at the cost of violating their own rulebook. With this in mind, one can only deduct that these players have discerned, or become knowledgeable of a relative amount of “safety”. This was the “understanding” that caused me to become so bullish in 2020. Once I saw certain names enter the space, I was convinced that the next logical move would be up. Why have I not done likewise in regard to BlackRock and other recent “latecomers”. The answer comes down to the same dynamic that dictates my trading decisions.

The Hierarchy Of The Market

I have spoken on this numerous times and dedicated an entire post to this dynamic. Many traders and investors are currently making bad decisions because they are basing their ideas on isolated data and are avoiding taking note of the psychology of the market. I am not going to expound on this now. However, you can always refer to the post in which I address this dynamic. Despite the size and influence of BlackRock, it is still subject to the hierarchical structure and is unfortunately not at the top. The “ruling power” has not yet signaled a “bullish permission”. Markets are awaiting an “order” from on top before they can begin making definitive moves to the upside.

Technical analysis and models need to “fit” into the hierarchical narrative. If they do not, they will fail. Economies, markets, and the businesses that make up these respective economies are now faced with the challenge of restructuring. Even the “big boys” like Tesla have recently made adjustments. Unfortunately, the majority are still at the beginning stages of this process, which usually just means cutting the workforce.

The process of restructuring does actually extend beyond this move. What we are currently experiencing is “seasonal provision”. In a time when automation, AI, and other technological developments can assist in simplifying and streamlining businesses, blockchain becomes available. For many, it may begin as a “means of survival”, but eventually blockchain-based models will become more and more prevalent. The ruling hierarchical power is forcing businesses to adapt or die. Certain business models are no longer even relevant since 2020.

It Began With Covid

Looking at how businesses were forced to operate through and after the pandemic reveals the “birth” of this “adjustment”. A recent article reveals just how significantly the pandemic affected businesses, ultimately pushing them towards a restructuring.

During the pandemic, consumers have rapidly moved toward online channels, and companies and industries have responded. Research indicates that COVID-19 has caused companies to accelerate the digitization of their supply chain, customer interactions, and internal operations by between three and four years. The share of products and services in company portfolios that can be accessed or bought online has reportedly accelerated by an incredible seven years.

A fifth of micro-businesses set up an online presence for the first time during lockdown and more than half of businesses who already had a website bolstered it with additional content, social media posting, or by adding an online store.

If companies are establishing new models, it makes sense to adopt a blockchain standard now, rather than later. Now, we also have the economic climate and inflation triggering yet another stimulus for adjustment. According to Blockchain Council, the following top companies have already adopted blockchain.

  • FedEx
  • Burger King Russia
  • KIK
  • IBM
  • Walmart
  • Microsoft
  • Overstock
  • Mastercard
  • Huawei Technologies
  • Bank of America

    To top it off, this is not even current data, this data was published in February 2021. Can you imagine how much traction this trend has amassed since then? Remaining relevant, as well as survival, are two of the most critical aspects of business. Global events are literally “herding” companies towards a digital alternative.

    Final Thoughts

    This is definitely a trend that will continue to grow. Multiple events and scenarios are enabling, and ultimately enforcing a shift. Companies that will continue to thrive in the years to come have no choice but to adjust their business models, and blockchain is fast becoming one of those adjustments.

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