Bitcoin and what they can do in general can be seen two different ways. As actual currency, like dollars. Or as a form of transferring payments online. It is the second one that interests Porn, or it should at least.
Currently credit cards (Visa and Mastercard) are the preferred method, actually the only method for buying stuff online. Anyone who actually buys porn online, whether from a website, online DVD store or VOD site, they will overwhelmingly want to pay with a credit card. If you plan on selling things online you will have to accept Visa or Mastercard.
That is a lot of power Visa and Mastercard has over the adult industry and they exercise that power a lot. They charge adult product sellers a premium to accept Visa and Mastercard for their products by saying what we sell is “high risk”. Now there can’t really be an argument that selling porn is high risk and that label is something Porn brought on itself (and still does), but that is another article.
Fact remains, when it comes to selling online as an adult business, anyone who processes credit cards online will pay up to 20% of their sales to do so. All things being equal if you were to accept Bitcoin as a form of payment that number drops to below 1%. That is a huge savings at a time when Porn needs every penny it can get.
Now Bitcoin has its controversy and it is not yet a fool proof system, but it does offer a chance for the adult industry to possibly start breaking the hold Visa and Mastercard have over us in not only crushing fees but also in their idea of what is acceptable to sell.
Currently some of the major studios have begun accepting Bitcoin as payment and, it from most accounts, is being received a little luke warm. But I am confident it will catch on. Bitcoin has such great potential for an industry that desperately needs to begin to control its own fate.
Some of the things I will be keeping my eye on is how Bitcoin will start to be used by individuals and smaller studios that may not be have the capital to even begin selling product with at a 20% loss from the start. Bitcoin acceptance could certainly continue to push the rise of adult internet start ups and individuals selling directly to their fans.