In the adult entertainment sector, cryptocurrency is very popular.
From Gutenberg to Google, the art of pornography has become more accessible to the general public.
Throughout 45 sex stores, 570 adult video content websites, and 60 webcam platforms around the world accepted bitcoin as a means of payment a few years before the pandemic occurred. The figures are insignificant when compared to the whole size of the adult sector. Those in charge of the sexual content industry are eager to see how bitcoin may help them overcome their financial difficulties. Cryptocurrency promises anonymity to users.
The adult industry has a reputation for early tech adoption and popularisation, from VHS tapes to internet payments. Porn has acquiesced to this new kind of compensation. Fees, KYC rules, card details, financial institution infrastructure, and payment processors are all bypassed, lowering the cost of selling content digitally dramatically.
Around this time last year, when the epidemic was at its height, almost 5% of global web traffic from PCs was diverted to pornographic sites. That may not seem like a large amount, but when you look at the statistics of some of the most popular and heavily trafficked adult websites, you can see why.
Cryptocurrency's Evolution in the Adult Entertainment Industry
Several well-known companies, including Pornhub and Wicked, dabbled with cryptocurrency for years before taking the next step. Rather than investigating other options, many websites focused on taking Bitcoin. Early attempts to create coinage aimed particularly at the adult market, such as Titcoin, failed miserably.
This network of peer-to-peer electronic payment systems employs bitcoin, a native cryptocurrency, to transmit money via the internet or to operate as a store of value similar to precious metals.
Bitcoin and other cryptocurrencies are analogous to email in the financial realm. The currency has no physical form, and its value is exchanged directly between the sender and the receiver. There is no need for banking middlemen to help with the transaction because it is done publicly using blockchain, an immutable, transparent distributed ledger technology.
The Sex Industry Has Moved On To Digital
Experts estimate that thousands of cam ladies work across platforms like OnlyFans and Chaturbate at any given moment. In terms of the number of creators, this exceeds the current pornographic sector. OnlyFans currently has 60,000 content creator accounts and millions of registered users.
Some artists cash out their bitcoin, while others keep it. However, with a look into the future, the parent organisation may be able to keep them, as they are bound to appreciate. The whole sex business is relocating as pornographic production is halted or cancelled in major cities such as Los Angeles, Miami, and Las Vegas.
Performers are now broadcasting from their homes via social media. In comparison to high-end escorts, Bitcoin may offer a distinct choice for platform performers. The sex industry is made up of various entities rather than a single unified unit.
Digitalization of Tech Tools
When the workload dried up, several sexual content performers rushed to register on as many websites as possible. The pandemic drew a large number of people to OnlyFans, and it was at this point that in-person labour became unworkable. However, several professionals stayed away since the pay did not seem to be worth the dangers or effort. They reasoned that disclosing incriminating information to a small group of clients would be safer than disclosing it to a larger audience whose financial situation was unknown. Each set of eyes poses a new danger.
On services like OnlyFans or Chaturbate, performers and escorts with their own wallets can receive gifts and payment. The teledildonics trend, in which internet-connected sex gadgets can be programmed to vibrate when money is received, could open up new avenues for customers to incorporate money into their fantasies. Teledildonics refers to virtual sex interactions that use technology to mimic and extend human sexual connection.
Cryptocurrency's Slow Adoption
For years, sex service providers have experimented with bitcoin. They are well-versed in bitcoin privacy technology. Users who have already submitted KYC information to a central portal are unaffected. Bitcoin allows people to make payments and pay advertisers without having to share their credit card information.
For years, mainstream platforms like Chaturbate and their main competitor FanCentro have accepted cryptocurrencies. Even if the usage is specialised, it is consistent.
Adult content creators believe that a direct contact and transaction is more profitable and preferable to payment made through platforms. The reason for this is because Chaturbate takes approximately half of a performer's profits, which is exorbitant. It certainly provides a useful service. If the performer moves to an independent site, clients are more than eager to pay in bitcoin.
Clients Who Are Prepared To Adopt Crypto
Adult businesses recognise that just a small percentage of clients want to pay with cryptocurrency. Most bitcoin clients in the United States live in affluent areas such as the Bay Area, Florida, Los Angeles, or New York. However, because the epidemic has prompted domestic migration, it is uncertain how it will affect sex workers who often work in metropolitan areas. This could result in travel issues and limited bookings.
Clients are comforted by cryptocurrency.
Although adult organisations do an excellent job of protecting their customers' privacy, porn buyers are often concerned (and rightly so) that individuals in a bank or in their houses would learn that they engage in porn through their credit card transactions. Cryptocurrencies, on the other hand, simply use a pseudonym to publicly record each transaction on a decentralised ledger, making it harder to follow a person's digital habits.
Getting found viewing or purchasing pornographic content, whether you're a married Christian conservative in America, a gay male in Malaysia, or someone with a peculiar obsession in Europe, can result in social ostracization and legal ramifications. As a result, anonymity is a rudimentary concept.
New crypto platforms are going all out to entice users to use their services by offering incentives. Some websites provide discounts to users who pay in well-known currencies such as Bitcoin. Discounts, along with the promise of privacy, are a great combination to persuade individuals to switch away from streaming free porn and toward purchasing high-quality video. Coin users may help the porn business by submitting suggestions for the types of activities they want to see. They could even vote on the types of scripts they wish to see produced by studios. Some companies have created a lottery in which early adopters can win an all-expenses-paid trip to a specific area or event.
Cryptocurrency Pitfalls in the Adult Content Industry
Cryptocurrency systems have a severe learning curve. In the last decade, adoption obstacles have been restricted due to a lack of consumer knowledge and interaction with these systems. However, in 2017, there was a significant increase in consumer awareness of cryptocurrency, its use, and the excitement around it. With mainstream adoption reaching fever pitch, the pornographic business followed suit and began taking bitcoins.
Many consumers are still perplexed by cryptocurrency, both conceptually and practically. This could be a congenital problem in the pornographic sector since, while fans of adult content are not restricted by age, actual customers of sexual content are typically older. And they are cautious in their purchases and technological adoption.
The new payment mechanism that has been implemented in the adult business is complicated. Users must first purchase a well-known cryptocurrency, then swap it for a token, store it, then utilise it in a specified way. When compared to paying with a credit card, this is far more perplexing and imprecise.
Everyone may contribute to the project's success.
Users might be educated by sex workers who utilise a certain site. These incentives, however, may not be enough to entice consumers to new crypto platforms. The use of a coin will be limited as long as customers are uncomfortable with it.
This is similar to how people were cautious to provide credit card information in the early days of internet payment processing. It takes a long time for big payment processors to gain consumer trust.
Established pornographic organisations may be unwilling to adopt or work with emerging adult crypto systems, restricting their ability to become ubiquitous and trustworthy payment infrastructures.
Few adult sites or networks have formed collaborations with new ventures. SpankChain and VogoV collaborate with prominent adult industry players. They not only promote systems to fans, but also assist in the positioning of coins to strengthen alliances.
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