November 2, 2021
  • November 2, 2021

Musicians will receive musical royalties paid in Bitcoin

By on October 13, 2021 0

Bitcoin is music to the ears of musicians – at least for some of them.

Bitcoin and cryptocurrencies are constantly at the forefront of promise and peril – where holders want to use digital offerings to transact and get paid. Yet the price volatility of these same offers makes it difficult to determine the value of a trade.

Timing, like so many other things in life, is everything.

Converting bitcoin to fiat at the “right” time can be a godsend, giving the holder much more purchasing power than when they originally bought the crypto. The reverse scenario may also be true.

In a sign that cryptos are moving more and more into the mainstream, Coinbase said this week that he partner with UnitedMasters to allow the musicians of the music distributor to be paid in cryptocurrency for the music they create. The musicians themselves can choose to be paid in US dollars or in crypto, in whole or in part.

“Artists can also take advantage of all of Coinbase’s product offerings – including spending, earning, trading, and borrowing – to help them do more with their crypto,” Coinbase said in the statement.

Certainly, there is no shortage of online platforms to ensure that payments reach creators. One example is Patreon, which matches six million monthly active customers with over 200,000 creators, enabling payments through channels like PayPal.

For Coinbase, the partnership represents a way to integrate new users into the crypto ecosystem it creates. News of the partnership with UnitedMasters comes shortly after Coinbase announced it would offer direct deposit in the United States, allowing customers to deposit a portion of their paycheck into their Coinbase account. At the end of last month, the company said that account holders can choose to be paid in any of the 100+ cryptocurrencies available on Coinbase, or in US dollars.

Read also: Paycheck Deposits Coming Soon to Coinbase Accounts

Play the timing game

As for the timing aspects: Musicians – and all artists who plan to embrace crypto over dollars (or any other hard currency) paid directly into their accounts – may be playing a bit of a game. waiting. In other words, these recipients make an implicit bet.

The bet is that by holding onto the crypto, whether it is bitcoin or some other holding, they can wait for the price to rise, convert that crypto into fiat at a desirable price, and then spend the money. It also implies that they have sufficient disposable income to park in accounts held by the exchange and play this waiting game.

The reverse situation is certainly true – where the value of crypto holdings can drop precariously, and the musician or artist can see the value of that account drop dramatically. It’s a risky proposition, that’s for sure.

Familiarity can breed confidence in the adoption of cryptos in everyday use cases. As shown in recent PYMNTS research, 18% of the adult population is likely to use cryptocurrency to make a purchase – some 46 million consumers, including 17 million non-owners.

Read also: BitPay Study: How Consumers Want to Use Crypto to Buy and Pay in 2021 and Beyond

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NEW PYMNTS DATA: DIGITAL BANKING STUDY – THE BATTLE OF BREWING FOR WHERE WE WILL BANK

On: Forty-seven percent of U.S. consumers avoid digital-only banks due to data security concerns, despite considerable interest in these services. In Digital Banking: The Brewing Battle For Where We Will Bank, PYMNTS surveyed over 2,200 consumers to reveal how digital-only banks can boost privacy and security while providing convenient services to meet this unmet demand.

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