Digital Currency is ceaselessly gaining new ground and several industries have already embraced cryptocurrencies along with its blockchain technology and have facilitated transactions as well as communications in the most beneficial way. Today, there are talks all over the internet advocating that cryptocurrency is the future and will soon make the fiat currency a thing of the past. It is no wonder therefore that cryptocurrencies have already made its way even into the obscure sectors of the society.
In an industry market research conducted by the IBISWorld, the growth of internet connectivity and a generational shift in attitudes toward sex have contributed tremendously to the increased consumptions of pornographic materials which made the Adult & Pornographic Websites Industry grow by 10.4% in 2018. With a massive industry as such, several websites have adopted the use of cryptocurrencies as a means of payments for their content. PornHub for example has recently partnered with Verge, a decentralized cryptocurrency that uses networks such as TOR and I2P to make transactions anonymous. PornHub will now accept Verge as a means of payment for their services like Pornhub Premium in their platforms. The introduction of this cryptocurrency as a payment option in Pornhub is a radical transformation from the traditional payment options in an industry boosting technological advances.
The use of digital currencies has its advantages to which patrons and providers in the adult entertainment industry can benefit alike. Among these are anonymity, convenience, and practicality. Cryptocurrencies do not depend on any intermediaries so transaction periods are faster and are not impeded from any holidays. While banks, credit-card companies, and even some payment processors like PayPal have policies which restrict clients from transactions related to adult industries like subscription for pornography and other online adult communities, cryptocurrencies do not discriminate at all.
Sex toys which can generate more than $20 billion a year globally and is expected by 2020 to reach almost $30 billion in sales, according to London-based market-research firm Technavio, are still considered by some financial institutions as high-risk. Credit-Card companies are also cautious when it comes to chargeback frauds. The adult entertainment industry is considered as “high risk” because of the high risk of chargebacks and disputes in transactions where the credit card is not physically present. It becomes difficult therefore for adult entertainment websites to find merchant accounts and even if merchant account providers accept adult accounts, they are more likely to charge higher than normal processing fees as well as setup fees. Visa and MasterCard have each imposed a $500 annual fee to every company classified under the adult industry. Businesses classified under the “high risk” are constantly in search for merchant account providers that can protect their businesses without incurring huge unnecessary fees. Such complications led the adult industry to slowly adopt cryptocurrencies. Once a client has paid for a product or service, the money will be immediately directed in the company’s wallet and charges cannot be reversed.
A review of history will show how the adult entertainment industry aided in the evolution of innovative technology from VHS, Beta Max, Internet, dating applications, to virtual reality, the adoption of an innovative cryptocurrency in this industry where privacy is highly valued is only fitting.
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