With the passage of FOSTA & SESTA as well as banks, PayPal and other institutions shutting down adult performer and companies accounts, crypto currency has become very important. Our client, Brenna Sparks (or as we call her the Crypto Queen) has written a blog about why crypto is here to stay and what our industry needs...including the fans.
When it comes to the adult industry, it can be easy to overlook the benefits blockchain could provide it. Looking back at my days before entering the adult industry, I clearly remember just how obscure the industry really is. The inner workings are buried deep and resembles a hidden society. In this article, I will attempt to briefly expose some hidden issues in the adult industry, how blockchain and cryptocurrencies can help, and hopefully inspire people to go and seize the opportunities that are available.
Fees and their relationship to discrimination
We are accustomed to paying 3% fees, maybe a little bit more, no big deal. How about losing 30-50%? Every time you perform or make content and distribute it, you're losing up to half of your earnings to who-knows-what on fees alone. That's pretty much the current state of things in the adult industry. Cam sites and content distributors like MyFreeCams and Manyvids take 40%. Independent performers who attempt to distribute their content through their own channel still have to pay fees of up to 30% or more just to process payments. Nothing is more discouraging than to watch yourself give up nearly half of your earnings "just because".
Although greed does play a role, what plays an even bigger role is discrimination. The reason this issue exists is because common payment processors like Paypal, Google, Stripe, etc. will not allow you to perform a transaction related to any adult work, and Banks like BofA or Chase will close your account if they suspect you do adult work. This leads to performers and studios to seek alternatives, and is also where the ludicrous fees come in. You now have to deal with odd payment processors who charge a premium for the service because they know you have no other choice and proceed to flex their power by expanding their price to the very edge, knowing you have no choice but to give in. Combine the fees of the sketchy payment processor with a business that needs to make profit, and you've arrived at the ludicrous fees we have bent over to accept.
Blockchain and cryptocurrency offers a simple solution - Ultra-low fees, no discrimination, and instant transactions anywhere in the world. No bank, company, or government can tell you what you can or cannot use your money on or where you can use it, and no more ultimatums that studios and performers have grown accustomed to. All you have to do is ask yourself this, "What if I could handle all of my own transactions? Why do I need PayPal to move my money, why can't it just be like when I use cash but on the internet?" - You can do this with blockchain technology and it's very easy, just takes a little bit of adjusting. Using cryptocurrencies is a lot like when you use cash, but on the Internet. There's no middle man to throw a wrench at your otherwise perfectly smooth operation.
In the world of escorting, sugaring, etc. discretion plays a lead role. One could pay cash, but often times it isn't possible nor is it discrete or even safe. The exchange of physical cash can be a very uncomfortable and vulnerable moment for both parties. Clients often can't verify 100% of the funds until they are in the presence of a complete stranger. At that time, anything can go. The client can take advantage, the customer can get robbed, police can be involved, etc.
The solution here is to use cryptocurrencies to send money. With cryptocurrencies, there is no name attached to the account. All you have is a wallet address made up of random numbers and letters, and the owner of that account is anonymous and can always switch to another address in just a few clicks. You can verify existing funds by searching the wallet address, send money discretely at any time with zero worries, and avoid possible legal issues and drastically reduce criminal incentives. There is no easy way to rob someone like with cash and there is no risk of fraudulent charge-backs (another big issue in the adult industry). This kind of power and flexibility is non-existent outside of the blockchain. It's like having a bunch of swiss bank accounts at your fingertips, but so much better.
With cryptocurrencies, you're getting the best of both worlds of cash and online payments. All the junk and limitations have been removed from traditional payment methods and all of their best features have been merged into one new payment method. Of course, these features extend far beyond just the adult industry, but the adult industry benefits greatly from the amount of flexibility, safety, simplification, and anonymity that cryptocurrencies offer.
Other opportunities include fixing piracy, marketing and advertising, content distribution, accounting, infrastructure and more. There is a lot of profit to be regained in how the system is currently set up. The entire industry has no only lost a lot of its profit margin over the years, but also has been weakened when it comes to growing. If the industry sticks with its current state, it will all crumble. Profit margins are diminishing, the value of performing is decreasing to the point where there is no point in performing at all, government is now butting in and threatening the industry as a whole, advertising revenues and practices are a growing problem on the internet, etc. Blockchain technology and cryptocurrencies will be everything this industry needs to in order to keep up with modern times and to resume the growth it needs to satisfy the increasing number of performers and producers entering the industry.