Untangling the Processes of Bitcoin: An Organizational Learning Perspective

Abstract

Bitcoin is a complex phenomenon, whether in terms of the macro factors affecting its price or its role in the global energy infrastructure. However, extant literature pays too little attention to exploring the internal mechanisms of the protocol to be able to link them to how they affect the visible characteristics of Bitcoin. This paper uses secondary data from highly reputable Bitcoin-focused sources to systematically map the processes that enable Bitcoin to function as a peer-to-peer cash system. Novelty is achieved by applying the established and versatile “4I” organisational learning framework to provide a new lens through which to understand how the processes within Bitcoin enable and facilitate different types of changes to the protocol. Further insights are provided to organisational learning from Bitcoin, in relation to managing mission-critical changes to organisational systems. In addition, it presents an option for dealing with irreconcilable internal differences to “hard-fork” part of the organisation. While the scope of this paper is limited to secondary data, opportunities for further research, including primary data collection, are outlined to explore how Bitcoin knowledge disseminates within communities or companies.