In the 1980s, the internet was frequently used by three types of people: government officials, university scholars, and individuals seeking adult entertainment.

Keeping the mundane search history of officials and the scholars away, only one thing remains in the frame, which is the often frowned upon, yet highly sort after, the adult entertainment industry.

The adult entertainment business has seen massive growth over the years and its numbers speaks for themselves. In 2018, Pornhub, one of the biggest porn websites on the planet, ‘entertained’ individuals approximately 33.5 billion times via their webpage. That is around 13.7 million visits per day.

Source: XBIZ

An estimated number of 201,405 videos are watched, and porn websites around the world register 64,000 visitors/per minute in a day.

The data associated with the industry does not shy away from the revenue aspect either. According to a poll conducted by XBIZ, the porn industry generates a magnanimous revenue between $6 billion and $15 billion every year, in the US.

This is more revenue than the NBA, Hollywood, and Netflix. America’s intense porn obsession can be credited for fueling its economy and the adult entertainment industry clearly plays a major part in it.

The adult entertainment world is one of the few industries which prides itself on the reputation of being the front runners of early technological adoption. In 1977, when VHS tapes made its way into America and the rest of the world, it is believed that the porn industry played a massive role in ushering in its initial success in the 1980s.

However, the tryst between cryptocurrencies and the porn industry has been a tricky one. According to a research, conducted by the porn studio VogoV, by the end of 2018, around 470 adult video sites, 50 webcam platforms, and 35 sex shops worldwide had started accepting virtual currencies as a form of payment. The data on paper may echo a significant number, but when it is compared to the overall size of the ever-expanding adult industry, it is very minuscule.

The industry started to take massive strides with the adoption of cryptocurrency around early 2017, when the idea of crypto as a payment started gaining traction.

Source: Naughty America

In 2017, major sites like Naughty America and xHamster started accepting Bitcoin as a form of payment. Pornhub and some of its sister websites also started establishing partnerships with various cryptocurrencies such as Horizen [ formerly ZenCash ], Tron, and Verge.

According to a poll by fightthenewdrug.com, Porn was actively viewed by the millennial of the current generation [between the age of 16 and 33]. A person of this age group mostly has an active social life and outgoing lifestyle. No one in this age group would like to disclose or talk about it with their partner that they were paying for pornography. It can come across embarrassing and usually uncomfortable most of the time. The adult entertainment industry is one such which can only be consumed in the privacy of your own space.

This is where both the parties meet at a common ground and present a great opportunity.

The anonymity offered by the virtual assets is a sigh of relief for the adults who do not want their private viewing habits on the internet to be a recorded statement on their credit cards. Hence, the idea or awkwardness of receiving unexpected emails from your favorite porn websites is completely taken out of the picture.

The payment platform associated with crypto also solves major issues which are associated with trust between the user and the website. The amount of fraudulent websites prevalent in the adult industry is massive and people are justifiably skeptical of entering their card details. The space for illicit scams is enormous and a slight pushback can allow hackers to access your bank account credentials. In simple terms, it is not safe!

Additionally, one of the major issues which often escape the eye is the difficulty suffered by adult performers. The number of adult performers around the world is assumed to more than a 100,000. That might not be significantly high, but in terms of paying them for their service, it is.

The issue arises as a lot of banks do not allow adult performers to open accounts in their name and use their services. A few years back, adult film stars were reportedly getting their bank accounts systematically closed by JP Morgan Chase for no reason other than their professional connection with the adult entertainment industry. Hence, most of the performers have to take payment in cash, which becomes a personal hassle for them as their security is in the limbo.

The cryptocurrency method of payment completely solves this problem as they can receive their payments directly to their digital wallet without the involvement of financial institutions.

Bitcoin, the first original cryptocurrency which started the whole crypto-saga, is the most popular and valuable crypto in the market. At the time of writing, Bitcoin held was closing in on 60% market dominance in the cryptocurrency market.

Source: Pornhub

However, when Pornhub introduced the option of cryptocurrency payment on their website, they overlooked Bitcoin and decided to form a partnership with the lesser known crypto known as Verge cryptocurrency.

Corey Price, the Vice President at Pornhub, stated that Verge was entirely anonymity-focused, which is why it was chosen over other virtual assets. Price added that Verge offered “convenience and security”, which in theory was an inaccurate statement considering the volatility of the crypto-market.

Moreover, if the functionality of Bitcoin and Verge were to be compared, Verge was more of a privacy token than Bitcoin. All the transactions taking place on the Bitcoin blockchain can be traced and eventually be linked to a person’s name, provided KYC rules have been implemented.

When using Verge, the anonymity is further solidified because of its unique Wrath Protocol. The protocol hides every part of the transaction from the blockchain, except the amount which was sent or received. The blockchain will not have a record of the purchase nor can it be traced back to an individual.

Moreover, Verge had a better performance track record as it could process 100 transactions per second, in comparison to Bitcoin’s seven transactions per second. Verge also boasted better speed as it was able to process a transaction every 30 seconds, whereas Bitcoin [BTC] required 10 minutes for executing a transaction.

Pornhub also had the option of crypto payments via Horizon [formerly known as ZenCash] and Tron. Pornhub’s choice can be identified from the reasons above.

Source: Twiter

Brazzers followed suit and listed the same tokens as options on their crypto payments platform a few days later.

However, Bitcoin did not entirely miss out on the adult industry. Mainstream porn website Naughty America listed Bitcoin [BTC] payments on their webpage alongside Litecoin [LTC]. Other lesser-known websites such as Chaturbate and Playboy Plus also included Bitcoin payments on their websites.

Source: CamSoda

Contrary to the selection above, CamSoda recently announced the integration of crypto-payments, including seven different coins such as Bitcoin [BTC] and Ethereum [ETH]. Hence, the general bias towards certain coins was not widely spread out.
The adoption of coins might vary from site to site, but it is still a win for the larger picture, which is the global adoption of cryptocurrencies.

The argument drawn for the late adoption of cryptocurrency in the porn industry is highly debatable. The speculated reason for the increased interest of the adult industry in cryptocurrencies can be attributed to the increasing popularity of virtual assets over the last half-decade.

The cryptocurrency market went through a major market surge back in 2015 and witnessed another significant one in 2017 which raised the valuation of the crypto-market to over 100$ billion in market capitalization. The community started exploring various platforms where virtual currencies could be implemented.

The adult industry might have been slow to get involved, but they were not ignorant to not tap into the industry. The progressive growth of the crypto with a huge user base online reassured the adult industry that the inclusion of crypto-payments would only improve their stocks and revenue in the years to come.

The post Cryptocurrency and Porn Industry: Why is it a perfect match? appeared first on AMBCrypto.

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