Cryptocurrency in the Adult Industry: A Look at the Future

Interested in what the future holds for the adult industry when it comes to cryptocurrency?

The adult industry is a lucrative market and one that extends to many different areas of the global economy. Pornography is thought to generate around $97 billion worldwide whilst prostitution contributes an estimated $186 billion. Add in the various other markets such as sex-tech ($30.6 billion) and adult sex toys ($21 billion) and you are looking at an industry with the same GDP as Norway….only the Norwegians have their own currency.

In this feature, we take a look at the rise of popular cryptocurrencies like the Bitcoin and Ripple in the adult industry as well as focus on those that have risen to prominence specifically for paying for sex related services, such as the SexCoin.

What is a Cryptocurrency?

Unless you have been living underneath a rock for the last few years, then you can’t have failed to have noticed the rise of the cryptocurrency, or at very least the most successful form of this new asset, the Bitcoin.

Invented in 2009, the Bitcoin has enjoyed a lot of media coverage of late and is the world’s most successful cryptocurrency. However, it is just one of dozens of different digital currencies that have been designed to transfer money and assets without the need of banks or any middle men.

bitcoin sex industry

The bitcoin has shot to global prominence as an alternative digital currency. Image via Pixabay.

By decentralising a currency, wealth can be distributed without regulation or restriction and is beyond confiscation.

Transactions take place on using a publicly distributed ledger (the blockchain) using open-source software and are conducted directly between users on a peer-to-peer network.

Bitcoins act like cash in a digital environment and, just like real assets, you can even mine them like gold.

Just like traditional currencies, the value of any cryptocurrency is variable with exchange rates going up and down in response to external factors.

Why Use Cryptocurrencies?

There are obvious benefits to using a digital currency with the main pros being:

  • Instant and easy global access with no cross-border fees or geographical exchange rate variances. You can even access cash from your Bitcoin wallet using specialist ATMs.
  • With no central bank, you are in full control of your money at all times.
  • Fees are low or are not charged at all making it a cheap way to pay online or to complete international transactions.
  • Though the blockchain is a public document, no personal information is tied to any transactions.
  • The public visibility of the blockchain makes it hard to defraud or cheat anyone.

Of course, there are plenty more incentives to using cryptocurrencies with some people taking advantage of the currency’s popularity and investing for profit.

With security, accessibility and privacy being at the heart of this system of payment it is no surprise that, despite the volatility of prices, more and more businesses are getting on the cryptocurrency bandwagon.

How Are People Using Cryptocurrencies in the Adult Industry?

So how is cryptocurrency relevant to the adult industry?

The adult industry is a global one and as such standardising payment methods for webcam performers, studios, distributors, affiliates and all the myriad other people and companies that make up the adult network can be hard. This is made more difficult by many centralised banks and existing payment platforms having strict moral policies on the source of transactions. It is common for banks to refuse to process transactions that can be traced to the adult industry. For some, the only alternatives are via premium service bank accounts that charge exorbitant fees or to accept cash.

Step up, cryptocurrency which offers all the convenience of a standard bank transfer without any traceability of your personal information.

Of course, some companies and individuals are very welcoming of the privacy that cryptocurrencies offer and it allows them to transact their business safely, securely and quickly with full discretion.

In short, many cam models, porn actors and studios are already using cryptocurrencies to conduct their payments.

adult industry cryptocurrency bitcoin

The use of cryptocurrencies like bitcoin is being adopted across the camming industry. Image via Strip4Bit.

You can also find cryptocurrencies being used by many premium porn sites offering subscribers a far more private way to pay for their online adult content.

And it’s not just Bitcoin getting in on the act, there are now several dedicated cryptocurrencies that are aimed solely at the adult industry.

‘Sexcoin’, ‘Titcoin’ and the recently launched ‘Intimate’ are all examples of cryptocurrencies invented for use in adult content transactions.

Cryptocurrencies Used in the Adult Industry?

Bitcoin still has the predominant market share in most sectors but in the adult industry it is the rise of Sexcoin that is being hailed as the next big thing.

Ostensibly, Sexcoin is identical to Bitcoin as far as the end-user is concerned. Another form of cryptocurrency Sexcoin is marketed at the sex industry (specifically webcam performers and studios as well as porn actors, producers and hosting sites).

sexcion adult cryptocurrency

The Secoin team. Well suited for their work? Image via Sexcoin website.

They offer the same level of security, privacy and speed of transaction.

The difference is all in the mining which offers ‘miners’ the chance for greater rewards when they discover new Sexcoins. It’s a bit gimmicky which helps to promote the currency with the tech investors before it gathers a more mainstream following.

It was launched in 2013 as part of a movement known as the Altcoin Rising which saw a growth in the number of alternatives to the increasingly more popular Bitcoin.

Sexcoin can be used with secure wallets in Windows, OS X, Linux and Android for payments on the go. At present, Sexcoin is not in widespread use like Bitcoin but is being offered as a payment alternative on premium porn sites and in online sex stores in the USA.

The currency is growing in prominence with more sex toy stores, porn providers, online shops and adult venues coming on board all the time. 2018 looks set to be a big year for the currency as major marketing investments target Europe.

Other digital currencies being used in the adult industry include Titcoin; twice nominated by XBIZ as the Alternative Payment Services Company of the Year (2015,2016).

titcoin adult industry

Launched in 2014, Titcoin uses porn to manage the issuance of new currency. Image via Titcoin.

New to market in 2017, is the Intimate Token, the brainchild of a team of Australians. The currency is yet to see traction but has successfully secured $4.5 million in pre-sale contributions with a further target of $24.5 million by Q2-2018. The company hopes to make its brand of digital currency the premier trading asset for all adult related services including camming, VR porn, escorting, dating apps and even love hotels across Asia.

Of course, there are always those currencies that don’t make it and these adult cryptocurrencies sadly didn’t gain enough of a following to stand the test of time:

  • WankCoin
  • GroinCoin
  • AnalCoin
  • DickCoin
  • FellationCoin
  • XXXCoin

What is the Future for Cryptocurrencies and the Adult Industry?

Cryptocurrencies are still a misunderstood form of currency and there is much education needed to fully realise the strengths that this kind of service can offer.

With so much media focus on the volatility of exchange rates for cryptocurrencies, investing remains a concern for many people but education is key to dispelling the notion that this method is a ‘fad’.

The word is getting out and as more and more people move away from centralised banks and middle-men to transact their assets, the more stable the price of cryptocurrencies will become. Once this happens, we can expect to see cryptocurrencies become a more standard way of transacting money both online and offline.

sexcoin in adult industry cryptocurrency

Could Sexcoin be the future of adult industry payment? Image via YouTube.

In February 2018, Bubble Escorts became the first UK agency to accept Bitcoins as a form of payment for a prostitute. The company reports making the move after listening to its customers who were demanding a more discreet, convenient and secure way to pay for sex. More British agencies are following suit and there are reports of similar uptakes of the system in Europe and the USA.

This is just one example of how cryptocurrencies are being adopted in the adult industry and we can expect to see expansion of the types of services being available to buy using this digital form of currency.

Sexcoin in particular is spearheading a project to reach out to European partners in 2018 to extend t the reach of its existing network. They are looking to roll out the payment method to adult venues such as strip clubs, erotic massage parlours, sex clubs and adult toy stores.

Cryptocurrencies are already experiencing a rapid growth in uptake and though many predict the ‘bubble is about to burst’, the naysayers may still have to eat their words.

Since financial institutions proved in 2008 that they could not responsibly look after the wealth of investors, the rise of virtual currencies is being underpinned by a strong demand for people who want an alternative way to conduct their financial transactions. It is worth remembering that many viable digital payment platforms and services such as Paypal, Apple Pay and Skrill and ClickBank were also regarded with a similar doubt over their future when they were initially launched.

future of cryptocurrencies adult industry

With one in four global transactions expected to be completed using cryptocurrencies by 2030, the rise of digital cash can’t be ignored. Image via Pexels.

Many futurists predict that cryptocurrencies could replace up to 25% of traditional currency markets by 2030. However, the rise of this ‘cash in the cloud’ and the vastness of the economies which it will cover shall no doubt see governments becoming more involved with regulation.

So, it looks like cryptocurrency is here to stay but international legislation will no doubt shape how this innovative solution continues to develop. For the adult industry, the key remains that the system offers anonymity, security and accessibility. As long as these remain at the heart of adult cryptocurrencies then we can expect to see more and more transactions happening in the blockchain.

Featured image via MaxPixel.

Staff Writer

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