Can porn save the Bitcoin economy?

Porn could turn out to be the game-changer that could make the online currency Bitcoin really take off.

 

David Kay, marketing director at Porn.com's parent company Sagan Ltd., said Bitcoin provides privacy and confidentiality, according to a report on UK's The Guardian.

 

"Privacy and confidentiality are paramount when joining an adult service for the majority. In general you can surf porn.com for free, anonymously but if you want to upgrade to the premium services you have to enter a method of payment which historically has been credit card. In order for the transaction to process you have to include your full name and address. This is not necessary with BTC," he said.

 

"I definitely believe that porn will be bitcoin's killer app. Fast, private and confidential payments," he added.

 

He also said their experience "has been positive using BTC for smaller payments."

 

"I think the general public as a whole doesn't yet know that you can spend just a portion of a bitcoin on a purchase. Our customers are using bitcoins to buy premium services and to tip our live performers," he said.

 

The Guardian said Porn.com saw its sales increase by nearly a quarter since it started accepting payments in bitcoin, and its owners are selling the domain for $50 million in bitcoin.

 

It said Porn.com started taking bitcoin for its premium services in December, and BTC quickly accounted for 10 percent of its sales.

 

When a post on Reddit's Bitcoin subforum took the news viral in early January, the site saw a spike where the currency accounted for 50 percent of its sales.

 

Problems

 

But Bitcoin is not without its problems - the Guardian report said it is not possible for now to set up recurring payments with the currency.

 

Thus, it said it is impractical for subscriptions that renew on a short term basis.

 

Porn industry indicator

 

The Guardian noted the porn industry has been considered a key to the success of consumer technologies.

 

"One version of tech lore has it that JVC's welcoming attitude towards adult content on VHS was the reason it won out (against Sony's Betamax format) in the end," it said.

 

In 2007, porn.com was one of the most expensive domain names ever sold, when MXN paid $9.5 million to buy it, The Next Web noted. — TJD, GMA News