Why Bitcoin does not work for porn

[kostja]

Sexcoin is here  

Were is used for webcam models?

[GigaCoin]

Sexcoin is here  
Do you understand ? each coin/each activity

Bitcoin is NOT a currency.
Bitcoin is a commodity.

I dunno I had high hopes for sex coin but then there seems to be v weak development going for it and weak marketing and poor infrastructure. There is also no vision driving it.

I think eMunie has a better chance on being adopted By porn

[guybrushthreepwood]

At the first sight Bitcoin is ideal for porn since it protects customer privacy and cuts payment processing costs for the provider. Like many in the community I expected for long that Bitcoin will pick up in that industry and kept wondering why it takes so long...

... until today, when I learned from an industry insider why Bitcoin is not accepted at porn sites:

1. Because nearly all porn sites have introductory offers that lead to a subscription with recurring billing on the credit card until the customer explicitly recalls it. The fees are calculated with the assumption that most customers forget to cancel at least a couple of times or not even recognize that they pay for a service that they no longer use.

2. Because affiliates - those who direct traffic to the porn site - want a share of those fees in upfront. An affiliate receives a multiple of the introductory offer immediately if someone he directed to the site subscribes for a plan. Affiliates do not want the site to use bitcoin

Who actually pays for porn? I think the porn industry will have to change its business model or it'll go the way of the music industry.

[oscarg]

The First rule of trade:

"The Seller speaks the BUYERS language" - ancient saying going back to the Phoenicians.

What this means is, as soon as there is a group of people who choose to only pay for {anything} a certain way,
A Group of sellers will adapt to reach that market.

The advantages of paying for these Services/Products with Bitcoin are obvious.

       No surprise recurring Fees.
       Far greater anonymity.
       Much safer generally (example Credit Card Thefts from site, or transaction interceptions by malware).

There are advantages for Sellers also..

       Easy (almost free) setup - at least of basic accounts.
       No money to be spent on CC security compliance.
       Nearly immediate receipt of Bitcoin (rather than up to 72 hours)
       No international financial borders to deal with.
       No charge backs.

From a quick check, it seems there are already quite a few such sites that accept Bitcoin.

In my opinion this is one industry that will adopt Bitcoin quicker than many others..

[bryant.coleman]

I dunno I had high hopes for sex coin but then there seems to be v weak development going for it and weak marketing and poor infrastructure. There is also no vision driving it.

I think eMunie has a better chance on being adopted By porn

The proliferation of all these altcoins will end up doing a lot of harm for Bitcoin. What is the point in all these? One coin for porn, another for shopping.. like that? Why can't we use BTC for all of these purposes?

[kostja]

Who actually pays for porn? I think the porn industry will have to change its business model or it'll go the way of the music industry.

Users, and that money flow you can see yourself, go to myfreecams.com

[bryant.coleman]

Users, and that money flow you can see yourself, go to myfreecams.com

Also, somewhere I read that the per capita spending for porn is highest in Japan and South Korea. Volumes are higher in the US / EU, but the revenue is not there. 

[kostja]

but the revenue is not there.  

explain better please, about what is that?

Webcam sites are in grow, you can check it.
Recorded video sales are down, but there still huge money in circulation

Here are news about bitcoin in adult industry.

[bryant.coleman]

explain better please, about what is that?

Webcam sites are in grow, you can check it.
Recorded video sales are down, but there still huge money in circulation

Here are news about bitcoin in adult industry.

Webcams represent just a tiny fraction of the porn revenue. Most of the revenue still comes from DVD sales and rentals.

And regarding the US revenues, even with a population of 300 million+, the revenues are lower when compared to Japan and South Korea.

[guybrushthreepwood]

I dunno I had high hopes for sex coin but then there seems to be v weak development going for it and weak marketing and poor infrastructure. There is also no vision driving it.

I think eMunie has a better chance on being adopted By porn

The proliferation of all these altcoins will end up doing a lot of harm for Bitcoin. What is the point in all these? One coin for porn, another for shopping.. like that? Why can't we use BTC for all of these purposes?

This is my reasoning. All this has come down to is a dev thinking how can he create the next Bitcoin and looking at what markets are the biggest to capture. Oh, the sex industry, let's try a coin for that. Are normal people actually going to want to keep a sexcoin wallet on their comp or phone? No. Bitcoin, yes.

[kostja]

Most of the revenue still comes from DVD sales and rentals.

Log in VK.com, make a search for video files and think what you will rent after that.

[t1000]

I noticed Metal Bondage and Chastity Babes started accepting bitcoin.

"Recurring with CoinBase", this is how they solve the recurring payment problem.

[Mike Hearn]

If they're requiring you to hold a balance in a centralised hosted wallet, it's not really Bitcoin is it. It's just using Coinbase as a bank (bad idea!).

I believe there's another issue that's holding Bitcoin back in the porn industry: they use credit cards as a sort of cheap proof of age. The assumption being parents won't allow children access to their credit cards, and you need to be of legal age to get a bank account. That seems like a fairly unreliable assumption to me so perhaps some of their chargebacks actually come from teenagers buying porn and the parents charging it back.

However with Bitcoin there is obviously no proof of age angle to it. So ..... not sure how you solve that one.

[TheButterZone]

I believe there's another issue that's holding Bitcoin back in the porn industry: they use credit cards as a sort of cheap proof of age. The assumption being parents won't allow children access to their credit cards, and you need to be of legal age to get a bank account. That seems like a fairly unreliable assumption to me so perhaps some of their chargebacks actually come from teenagers buying porn and the parents charging it back.

I wonder how their credit card processors can even tell the age of the legal holder, because
1) I've had a bank account since I was 8, not sure how early I could have been eligible for more than an ATM card
2) danieldaniel claims to have got an Amex gold card at age 15 without lying about his age, and has had various "adult" accounts
3) prepaid cards, which appear to some machines as full-fledged credit or debit cards, don't encode age at activation, and may be sold to minors

[grau]

If they're requiring you to hold a balance in a centralised hosted wallet, it's not really Bitcoin is it. It's just using Coinbase as a bank (bad idea!).

I believe there's another issue that's holding Bitcoin back in the porn industry: they use credit cards as a sort of cheap proof of age. The assumption being parents won't allow children access to their credit cards, and you need to be of legal age to get a bank account. That seems like a fairly unreliable assumption to me so perhaps some of their chargebacks actually come from teenagers buying porn and the parents charging it back.

However with Bitcoin there is obviously no proof of age angle to it. So ..... not sure how you solve that one.

A solution for age proof with bitcoin could be a service that sells "adult" colored-coins for regular coins. The porn site(s) could only accept those. Certainly that site would need to do the age proof thereby requiring identification, but it would at least isolate the identity from the from the porn site.

[Kenshin]

I just found this site. A list of site you can get porn using bitcoin.

http://www.gentlybitten.com/index.php/bitcoin-smut

[bryant.coleman]

I just found this site. A list of site you can get porn using bitcoin.

http://www.gentlybitten.com/index.php/bitcoin-smut

Most of those sites are either cam sites or softcore ones. Sadly, I don't think that at this point of time, no hardcore porn site accepts BTC.

[dewdeded]

Why is that "sadly"?

[bryant.coleman]

Why is that "sadly"?

We need hardcore porn sites, i.e the ones run by well known US/EU based companies to accept BTC. It will result in a lot of publicity for Bitcoin.

[kostja]

We need hardcore porn sites, i.e the ones run by well known US/EU based companies to accept BTC. It will result in a lot of publicity for Bitcoin.

Buy domain, buy content and sell it for Bitcoin or another coin. Will to start?