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Bitcoin (BTC) has already changed the world, and as it gains traction, its potential to reshape the job market is becoming increasingly apparent. Even though recently we saw layoffs by big companies like Consensys and Kraken, it must be due to the industry’s maturing nature where companies are not yet certain about hiring principals.
The real story is that Bitcoin and its associated technologies will drive long-term job growth and create new roles. Unlike traditional assets, Bitcoin is decentralized. So, it fosters innovation and creates jobs in software development, cybersecurity, and financial services.
Even despite the not well-regulated environment, it already attracts different professionals. By this, Bitcoin boosts local economies and increases tax revenues, so not only people benefit but governments as well.
A new frontier for jobs—but not without growing pains
To start with, Bitcoin was the first-ever cryptocurrency. It came as a novelty that wasn’t accepted right away. However, later on, as people were getting more into it, more companies started launching their crypto tokens. To do this, they, of course, needed people who had already gained certain knowledge about Bitcoin.
It’s been 16 years since its invention, and crypto is no longer an unexplored phenomenon. Little by little, it becomes an integral part of our lives—the future is digital, as they say. From blockchain development and data security to market analysis and customer support, the skill sets needed in the crypto industry are expanding.
However, the industry is not fully mature, so there are no set hiring standards yet. At first, companies rushed to hire employees, anticipating the massive growth they predicted. But this has sometimes led to overhiring as companies face difficulty estimating the precise number of employees needed.
So, this boom in hiring has recently faced setbacks. Major players in the crypto industry, such as Consensys, Kraken, and dYdX, have all laid off significant portions of their workforces in recent weeks. They let go of 20%, 15%, and 35% of their employees, respectively. However, it only shows that the crypto industry as a whole is still defining its optimal workforce size.
A closer look at the layoffs reveals a more nuanced reality. Crypto companies are rather re-strategizing—they are shifting to smaller company types. Why? Because they think that companies with fewer but highly specialized employees who use web3 tools and AI function more efficiently.
In this sense, Bitcoin and its associated technologies are not just creating traditional roles but are increasing the demand for a workforce with cross-functional and adaptable skill sets. Companies need more and more roles that can be dynamic and evolve along with the industry.
Also, the volatility of the crypto market means that hiring trends tend to rise and fall depending on the Bitcoin prices and overall market sentiment: During bullish periods, companies have higher profits and often expand their workforce. In contrast, bear markets, regulatory challenges, and internal restructurings can lead to workforce reductions. This is what we see with the recent layoffs.
The bigger picture: long-term growth despite setbacks
The picture of crypto industry employment trends is much wider than it might be seen at first sight. Despite the recent flow of layoffs, crypto-related jobs still seem attractive to the masses—demand for crypto-related roles continues to rise.
The supply also remains in a positive trend. The biggest increase in positions is tracked in blockchain development and product management. There is also a need for individuals skilled in, for example, decentralized finance, digital asset custody, or blockchain law. And it is very interesting, as such a tendency represents the diversity and growth of the job market around Bitcoin.
To provide the future workforce, the introduction of educational programs and certifications in crypto and blockchain prepare new generations for work in this new economy. Education around crypto has become more common, so job seekers have become better equipped with the skills necessary for roles in this sector. This, in turn, reduces the need for companies to hire large teams.
Adapting to the sector
Since the market hasn’t reached its full maturity, there will be a need for adaptability. Many of the roles in the crypto industry didn’t exist a decade ago, and even more new roles will continue to emerge. Some professionals might find themselves in positions that didn’t exist when they entered the job market.
Continuous education and upskilling are essential as never before. The Bitcoin job market requires a mix of technical expertise and regulatory understanding. Companies are definitely going to experiment with different business models and will have to navigate regulatory challenges. To do all these, they will need employees who can adjust quickly to changes and operate efficiently.
