Bitcoin (BTC) is being championed as the solution to a new payment crisis affecting the adult entertainment website Pornhub. In a blog post on Nov. 14, Pornhub revealed that payment processor PayPal had abruptly stopped servicing its models.
Pornhub hits out at attack on “livelihoods”
Previously, models throughout the world received payouts via PayPal, which has not publicly stated why it cut them out of its platform.
“We are all devastated by PayPal's decision to stop payouts to over a hundred thousand performers who rely on them for their livelihoods,” the blog post reads.
Pornhub is now using direct funds transfer alternatives, which models must set up themselves. The website began a deal with cryptocurrency project Verge (XVG) last year, while users can purchase products with various cryptocurrencies via Pornhub’s partnership with merchant gateway PumaPay.
Models unaware of cryptocurrency
The debacle is just the latest in a string of skittish moves from PayPal, which has become well known for its seemingly arbitrary account shutdowns.
In each case, Bitcoin proponents highlight the benefit of using censorship-resistant cryptocurrency instead. Bitcoin transactions cannot be canceled or denied by a third party since they are peer-to-peer.
Pornhub’s problems, despite the Verge deal, nonetheless put the lack of overall knowledge of cryptocurrency in the spotlight.
“Crypto, personal portal... LOL. I don’t understand what that even is. I’m cool with just direct deposit into my bank account,” Shyla Jennings, a prominent model on the site, responded to the news on Twitter.
Jennings added she did not use PayPal herself, as the service had had her “blacklisted for years.”