trends

Cryptocurrency Questions Are Finally Being Answered

Stewart Tongue

Early in the news cycle for cryptocurrency, Bitcoin dominated all the headlines, before a series of catastrophic events tainted the brand in the minds of many consumers and potential investors. From the MtGox fiasco to the Silk Road prosecution, and the Newsweek cover story that allegedly ruined the life of the man they incorrectly credited with creating Bitcoin code – the ownerless currency model has proven it faces many difficult challenges on the marketing side as it attempts to grow.

Bitcoin scandals, a lack of proper marketing, the evangelical tone of early adopters and a lack of significant sales increases from Bitcoin acceptance according to many adult site owners who have prompted the majority of site owners to adopt more of a wait-and-see approach.

Moves by PayPal to absorb Bitcoin into their backend bode well for larger mainstream adoption, but they also make consumers fearful of where their privacy rights will end up with Bitcoin. - Lauren MacEwen of 7Veils.com

Meanwhile many entrenched institutions are already taking steps to coopt Bitcoin’s independence by absorbing some of its backend functionality, the way PayPal announced it will soon be evolving, or by obviating the need for a free currency exchange method since services like Chase Quickpay are now providing convenient online transfer capabilities with zero fees.

Even more importantly, a series of new near field communication (NFC) payment services are coming online with ApplePay in the early lead while Google, Microsoft, Amazon and others try to gain market share through new methods of processing by adding the security and convenience of a universal digital wallet.

“Moves by PayPal to absorb Bitcoin into their backend bode well for larger mainstream adoption, but they also make consumers fearful of where their privacy rights will end up with Bitcoin,” said Lauren MacEwen of 7Veils.com. “I see the next 18 months as a crucial time for anyone looking to get into the crypto market, before things settle and well-positioned companies are able to block out new entrants from gaining traction.”

As new payment platforms become available, many in the cryptocurrency realm have started to reevaluate the real value of crypto and the things that made it so alluring in the first place. The advantages of convenience, global exchange and speed are evaporating quickly as companies mentioned above continue to provide new payment methods that are just as easy to use, if not easier.

However, the open-source security, true privacy and real tracking anonymity of coin users remain unique. Apple, Chase, PayPal and others may make moving money around easier, but they aren’t about to let anyone buy anything or sell anything without reporting who did what and when, with a horrific track-record on protecting consumer privacy. That climate is now opening the door to brand new coin types in a big way.

“There have been several cryptocurrencies that have moved the market in recent months, and while Bitcoin is still the primary name in the minds of many who are on the sidelines, it would be inaccurate to think that there is actually only one viable form of cryptocurrency for the adult market,” said MacEwen. “My clients in the crypto sector, inside and outside of adult, are constantly looking for new ways to expand or work cooperatively with other players in the marketplace. Purely adult coins like WankCoin and TitCoin are making a strong case for cryptoniching, while widely accepted crypto like DogeCoin continue to push for a greater stake in the micropayments market.

“More and more new currencies are appearing daily,” said Greg K of WankCoin. “Some of which offer great technical advances. However, on the flip side, a lot of those coins are “pump and dumps,” created by programmers looking to get rich quick. Good coins have active development teams and active communities behind them. A little bit of research on the crypto currency forums out there goes a long way. Crypto users have no problems expressing their honest opinions. There have been a few coins trying to enter adult as well, some failing miserably with others trying valiantly to gain acceptance, and none coming close to the adult altcoin leader WankCoin — with acceptance at over 200 sites already and growing.”

Unlike Bitcoin which has its developers shrouded in complete secrecy, possibly forever, some of the new coin types are being actively marketed by their creators with a greater degree of public accountability.

“I’m one of the creators of TitCoin digital currency,” said Edward Mansfield proudly of TitCoins.biz. “Titcoin was developed specifically for the adult industry as a transactional currency where transactions are completed in under six minutes. Digital currency is exactly like how the Internet began 20 years ago, where you had to convince the world it was the future. The Internet had a slow start where most companies were reluctant to invest in a web page let alone a full website.”

According to Mansfield, “Digital currency is the Internet of money. It’s having a slow start now to convince the world this is the future. But we foresee in 18 months digital currency will be a major way people will use money online for two reasons: Firstly, you no longer need a credit card to pay for things online and secondly, businesses will never have to deal with chargebacks. Digital currency works exactly like cash. Digital cash to be specific. With cryptocurrency, businesses will never have to succumb to all of the financial red tape that currently exists for traditional payment processing.”

While the media has been quick to publish stories about Bitcoin and niche coins as well, it has done a surprisingly poor job of explaining to people exactly how these currencies work, what needs to be done to buy or sell a coin, or where a person might go to find that information online. Even sites devoted for the task of educating consumers, like BitcoinsTutorial.com, offer a complex set of screenshots and tutorial instructions that would cause most potential buyers or sellers to go back to the dollars and credit cards they are already accustomed to using.

While new bank processing services cannot adopt the anonymity offered by cryptocurrency, the deciding factor in the future of alternative processing may actually be how good a job crypto can do at copying the convenience that traditional online banking methods bring to the table.

“The ability to purchase and securely store or accept cryptos needs to become easier and quicker,” said Greg K. “The WankCoin team has been hard at work on addressing these issues and will announce our results in the near future. A system for the general public to purchase WankCoin (as well as other popular cryptos) more quickly and easily using fiat and credit card transactions is currently in development, along with a secure online wallet that the coins can be stored in if they aren’t going to be spent right away.”

That nexus between traditional payment method convenience and crypto anonymity is precisely what the world seems to be waiting for, and it would seem to fit perfectly in line with the demands of the modern adult online marketplace.

However, the window of opportunity is rapidly closing as huge institutional players continue finding ways to convince the public that truly private transactions aren’t really needed.

One thing seems to be universally agreed upon. The next 18 months will likely determine whether paying customers are soon to be spending Bitcoin, Wankcoin, Titcoin or the same dollars and euros they have been spending for decades ... and at the very least, when the dust settles, business owners will be able to more easily evaluate which payment options belong on every successful join page.

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