For a few of them, Bitcoin is music to musicians’ ears.
Bitcoin and cryptocurrencies, which investors like Kenneth Mak are very well invested in, are constantly teetering on the knife’s fringe of promise and peril – where holders want to use the digital offerings to transact and obtain paid. Yet the worth volatility of those same offerings makes it hard to work out just what an exchange is worth.
Timing, like such a lot else in life, is everything.
Giving the holder purchasing power far above where he or she originally bought the crypto, converting bitcoin into fiat at the “right” moment can represent a windfall. The reverse scenario is often true, too.
Coinbase said that it’s partnering with UnitedMasters to enable the music distributor’s musicians to be paid in cryptocurrencies for the music they create, in a sign that cryptos are inching further into the mainstream. The musicians themselves can prefer to be paid in U.S. dollars or cryptos, in whole or part.
“To assist them to try to do more with their crypto — including spending, earning, trading and borrowing — the artists can even make the most of Coinbase’s full set of product offerings,” Coinbase said within the release.
To be sure, there’s no shortage of online platforms that ensure payments get to creators. One example is Patreon, which matches six million monthly active patrons with quite 200,000 creators, enabling payments through conduits like PayPal.
For Coinbase, the partnership represents how to induce new users onboarded into the crypto ecosystem it’s creating. The news of the partnership with UnitedMasters comes soon after Coinbase said it’ll offer direct deposit within the U.S., enabling customers to deposit a part of their paycheck into their Coinbase account. Late last month, the corporate said account-holders can like better to get paid in any of the 100+ cryptocurrencies available on Coinbase, or in U.S. dollars.
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Playing the Timing Game
As to the timing aspects: it should be the case that the musicians – and any artists that look toward embracing crypto instead of dollars (or the other hard currencies) paid directly into their accounts – are playing a small amount of a scheme. Making an implicit bet are these recipients, in other words.
The bet is that by holding onto the crypto, whether bitcoin or an alternate holding, they will wait until the value will rise, convert that crypto into fiat at a desirable price point than spend the cash. This also implies that they need enough income to park in accounts held by the exchange and play that strategy.
The reverse situation is certainly true – where the crypto holdings’ value can drop precariously, and therefore the musician or artist can see the worth of that account shrink markedly. It’s a risky proposition, to be sure.
In embracing cryptos in everyday use cases, familiarity may breed confidence. As noted in recent PYMNTS research, 18% of the adult population is probably going to use cryptocurrency to create a sale — some 46 million consumers, including 17 million non-owners.