opinion

Will Bitcoin Catch on With the Porn Biz?

Will bitcoin ever catch on as a driving virtual currency for porn? Porn pundits say that it’s a natural fit and a perfect candidate for adoption because bitcoins are nearly as untraceable as cash, which makes them valuable to people who don’t want their purchases tracked by credit or debit cards.

But so far, the adult industry is somewhat tied up over the usage of bitcoin for transactions because payment gateways don’t accept them for sexually explicit material.

It is such a target for hackers to manipulate the currency; I wouldn’t feel comfortable to hold on to a $140 bitcoin. -Brian Schuster of Utherverse

“In that case, for a company like us, it would be risky to use a gateway if it violates their terms and risk the account or payments being held,” Allison Vivas, CEO of Pink Visual, told XBIZ. “Of course the benefit of the gateways is to actually get paid out in the currency we desire rather than hold on to the bitcoins.”

Vivas said that the viable option for use of bitcoin lies in non-sexually explicit, or soft, adult products.

And that is exactly what one operator, Amelia G, is marketing on gothic erotica site BlueBlood.com, which features nudity but not hardcore.

“BlueBlood’s content is more of the coffee table art book variety and has more to say than just ‘that’s hot’ (although we say that too), so those sorts of policies tend not to be applicable for us,” Amelia G told XBIZ.

Tony Gallippi of BitPay.com told XBIZ that bitcoin has a good future for some transactions in the adult industry space.

“Not only is the checkout process smoother and more private for the buyer, but it eliminates the fraud risk for the merchants,” he said.

“Services like BitPay can guarantee the exchange rate and offer a direct deposit into the merchants bank account, so there is no risk of holding bitcoins if they don’t want to.”

If one day bitcoin gateways were to let up on policies against sexually explicit material, it’s likely that some porn companies might just jump in and embrace it — but not if the currency is unstable.

Fabian Thylmann, Manwin’s managing partner, told XBIZ that until bitcoins’ value stabilizes, he couldn’t see how any real business can function using them for their customers.

Just in the past month, the price of bitcoins plunged more than 70 percent, sparking a rush of activity that overwhelmed trading platforms and suggested the bubble in the virtual currency has burst.

Bitcoins were down to $77 last month but reached as high as $266 per bitcoin later in the month. Also in April, trading was halted on Mt.Gox, a Japan-based exchange that claims to handle 80 percent of bitcoin trade worldwide. The price at that time was already at about $123, down more than half from its peak.

The trading of bitcoins, which has no central organization and is not managed by any government or central authority, relies on a peer-to-peer network.

Creation of new bitcoins is automated and given to servers or “bitcoin miners” that confirm transactions as they add them to a decentralized and archived transaction log approximately every 10 minutes. By the year 2140, the mining of bitcoins will cease after 21 million are created.

With bitcoin prices working like an accordion recently, some are skeptical of the currency but yet embrace it.

Last month at The Phoenix Forum, which drew online adult professionals from around the globe, bitcoin was on the minds of many, particularly in light of the economic fallout in Cyprus, where many adult entertainment companies operate due to its ease on business taxes.

“A lot of money moved out of Cyprus through bitcoin,” said Brian Schuster of Utherverse at one of the conference’s panel sessions. “It was one way that people in Cyprus were able to convert their euros into something that couldn’t be tracked by the government and converted back to a currency.

“Because of Cyprus and Spain the price of bitcoin spiked from below $10 about 90 days ago to $140 today,” he said.

As for a viable solution for the adult biz, Schuster sees bitcoin, or some other similar product, as a necessary tool in commerce.

“Bitcoin in its current reiteration is temporary but a virtual currency like bitcoin is viable,” he said. “Like so many forms currencies, they transition to the next and the next.”

But Schuster warned that the current high value of bitcoins could be a warning sign that reads caution.

“It is such a target for hackers to manipulate the currency; I wouldn’t feel comfortable to hold on to a $140 bitcoin,” he said.

For Amelia G, the idea of employing an alternative currency for her non-sexually explicit site an exciting one, while she closely examines conversion rates.

“I decided to be an early adopter of Bitcoin, partly because of the philosophy, partly because I think the technology is really neat, and partly because I think it makes sense to give potential members every possible option for payment,” she said.

“Adult adopting Bitcoin means it is likely to be a winning technology, and I am happy to do my part.”

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More Articles

profile

WIA Profile: Reba Rocket

As chief operating officer and chief marketing officer of Takedown Piracy, long at the forefront of intellectual property protection in adult entertainment, Rocket is dedicated to safeguarding the livelihoods of content creators and producers while fostering a more ethical and sustainable industry.

Women In Adult ·
opinion

Protecting Content Ownership Rights When Using AI

In today’s digital age, content producers have more tools at their disposal than ever before. Among these tools, artificial intelligence (AI) content generation has emerged as a game changer, enabling creators to produce high-quality content quickly and efficiently.

Corey D. Silverstein ·
opinion

How Payment Orchestration Can Help Your Business

An emerging payment solution is making waves in the merchant world: the payment orchestration platform (POP). It’s quickly gaining traction as a powerful tool for managing online payments — but questions abound.

Cathy Beardsley ·
opinion

Fine-Tuning Refund and Cancellation Policies

For adult websites, managing refunds and cancellations isn’t just about customer service. It’s a crucial factor in maintaining compliance with the regulations of payment processors and payment networks such as Visa and Mastercard.

Jonathan Corona ·
profile

WIA Profile: Laurel Bencomo

Born in Cambridge, England but raised in Spain, Laurel Bencomo initially chose to study business at the University of Barcelona simply because it felt familiar — both of her parents are entrepreneurs. She went on to earn a master’s degree in sales and marketing management at the EADA Business School, while working in events for a group of restaurants in Barcelona.

Women In Adult ·
profile

Gregory Dorcel on Building Upon His Brand's Signature Legacy

“Whether reflected in the storyline or the cast or even the locations, the entertainment we deliver is based on fantasy,” he elaborates. “Our business is not, and never has been, reality. People who are buying our content aren’t expecting reality, or direct contact with stars like you can have with OnlyFans,” he says.

Jeff Dana ·
opinion

How to Turn Card Brand Compliance Into Effective Marketing

In the adult sector, compliance is often treated as a gauntlet of mandatory checkboxes. While it’s true that those boxes need to be ticked and regulations must be followed, sites that view compliance strictly as a chore risk missing out on a bigger opportunity.

Jonathan Corona ·
opinion

A Look at the Latest AI Tools for Online Safety

One of the defining challenges for adult businesses is helping to combat the proliferation of illegal or nonconsensual content, as well as preventing minors from accessing inappropriate or harmful material — all the more so because companies or sites unable or unwilling to do so may expose themselves to significant penalties and put their users at risk.

Gavin Worrall ·
opinion

Know When to Drop Domains You Don't Need

Do you own too many domains? If so, you’re not alone. Like other things we accumulate, every registered domain means something to us. Sometimes a domain represents a dream project we have always wanted to do but have never quite gotten around to.

Juicy Jay ·
opinion

Understanding 'Indemnification' in Business Contracts

Clients frequently tell me that they didn’t understand — or sometimes, even read — certain portions of a contract because those sections appeared to be just “standard legalese.” They are referring, of course, to the specialized language used in legal documents, including contracts.

Corey D. Silverstein ·
Show More