Why Musicians Need Bitcoin

It’s time for a little disruption

You’ve just released your best song on Spotify, and it went nowhere, again.

You’re working two jobs, paying the band out of pocket, and keep losing money at shows. You get no airplay, little press, but are willing to do just about anything to find a new and broader audience. The music industry keeps “promoting” the same artists, the same themes and tropes, and you are up against thousands of other artists – most of them not nearly as talented and dedicated as you. Sound familiar?

What if I told you there is a way for you to…

Receive more money for your art and get it instantly.
Have less interference from middlemen.
Have a system where royalties are easier to track.
Have higher fan engagement.
Have more opportunities for merchandise and long-term financial security.

…then keep reading.

While it’s not likely that Bitcoin will completely replace fiat currency (USD, the Pound, the Euro, etc.), it is quickly becoming an effective asset class, a form of alternative payment in First World countries, and the standard currency used in several developing nations. Numerous governments, dozens of private companies, and millions of individuals are investing in Bitcoin and adding it to their portfolios. The U.S. Federal Government has accepted it as an EFT (exchange traded fund) and crypto currencies are expected to have a $5 trillion-dollar market cap in the next several years alone. El Salvador has adopted Bitcoin as a national currency and implemented its education in their public school system. Women in Third World countries and social justice causes are benefitting from investors and customers via Bitcoin transactions and donations because of its instant payments, and lack of a government or banking intermediary. For the 1 billion plus people on this planet who are unbanked, Bitcoin offers them a banking solution and a way out of poverty.

The possibilities expand every day as more people invest, and more vendors accept Bitcoin as a real form of payment. Not surprisingly, Gen Z, is more comfortable with cryptocurrency as an asset and investment than any other generation. As inflation rises and the power of our fiat currency declines, it makes sense to begin creating wealth in this space. Your music gives you the power to do just that.

The financial sovereignty that Bitcoin provides and the technology surrounding payments and Peer2Peer engagement like Value4Value will allow creators, especially music artists, to redirect the one thing that has been controlled by the music industry for decades, money. These new and revolutionary tools will be able to flip the script. Tools such as Lightning enabled wallets that accept and process micropayments instantaneously from around the world with little or no fees, split kit systems that allow the ability to honor copyright laws and shared revenue agreements (royalties), and decentralized distribution of music on the Web, will put the power of revenue collection and audience ownership back in the hands of the musician. Bitcoin allows artists to participate in the global marketplace like never before. Direct, instantaneous, global payments to artists – without the interference of banks or governments – can change the game dramatically.

This movement is just beginning, but the Proof of Work exists, and the payments are happening, every hour, every day. After nearly three years in development, the newest set of tools now seamlessly work together. Payments on the Lightning Network gained worldwide attention last summer (2023) after several independent artists documented on X that they were now making in one month in Bitcoin what took them several years to earn via their current distribution agreements. In August of 2023, payments via Lightning reached their largest transaction amount in history, and the network’s capacity for transactions remains strong.

As with any new tech, there are always bad actors and I’m sure you’ve heard plenty of warnings about crypto currencies. If someone tells you they lost money in cryptocurrencies, these concerns can typically be broken down into three areas;

First, and most common, they lost the password to their wallets (this guy lost over $200 million!).
Second, and the most publicly known, is that the exchange people bought their crypto on turned out to be a Ponzi scheme (like FTX) or got attacked by hackers (like Mt Gox). These events were created by bad actors and/or inexperienced business owners.
Lastly, they lost their money because the cryptocurrency they bought does not have the transparency and technology, and therefore value, of Bitcoin. These are called “altcoins” (or “shit coins”) and it’s not uncommon for first-time investors to try out several for a few months to learn about the process, but the majority move over to Bitcoin once they understand the differences. Know that there is only one Bitcoin. There is no Bitcoin company, and there are no Bitcoin employees. It exists entirely on its own, on the blockchain.

Unlike the newest tools in the cryptocurrency and web3 world, Bitcoin’s “DNA” had been in development prior to its creation in 2008 by Satoshi Nakamoto. It’s built on decades of cryptography and The Cypherpunk Movement that started around 1993. Yes, it has seen its own ups and downs but there is no longer any doubt about its validity. Government acceptance and regulatory attention mean that Bitcoin is here to stay and in my humble opinion, will be the primary long-term winner in the crypto space. Click here to see a list of companies and governments that own Bitcoin, and click here to see a list of politicians, executives, athletes and celebrities that own Bitcoin.

Other cryptocurrencies will surely come and go, and there may be a need to capture revenue from those verticals, but that is another conversation for the future. What is important to understand about using Bitcoin as your base for digital currency is that its decentralized, unregulatable core design means that it can’t be shut down. Since it is based on open-source technology and the ledger can be seen by anyone on the blockchain network (from anywhere in the world), it is virtually unstoppable. And, since it is a finite asset, its value will only increase. Many would argue that as an asset class it is similar to gold.

The primary attraction to Bitcoin is inflation in our daily lives. When governments print an endless supply of money with no accountability, it weakens the value of their dollar, and your daily expenses rise. Think of it another way. The Mona Lisa is “priceless” because there’s only one of them. The Honus Wagner T206 baseball card is one of the most valuable because only 57 are known to exist. Why are items like notebooks, fast food hamburgers and compact discs so inexpensive? Because there is a massive supply, and they don’t hold their value. That does not happen in Bitcoin. There will only be 21 million Bitcoin in circulation, ever.

It's not necessary to take a deep dive into blockchain technology, cryptography, nodes, and web development to understand the benefits of Bitcoin (although if you are into that kind of tech stuff, it is fascinating). There is already plenty of information available on the topic of crypto currencies and Bitcoin (see below for references). But if you are not into the tech, that’s ok, just focus on understanding the revenue opportunity and implementing it as an additional and alternative revenue stream, with your music as the engine. If, as a collective, independent musicians can successfully divert even a small percentage of revenue from mainstream legacy music industry companies, that would be a huge win for the industry and the artist. Consider that siphoning off just 3% of Spotify’s $50 billion market cap would mean artists could recapture $1.5 billion in revenue directly to their pocketbook. The industry as a whole is worth some $80 billion so it’s understandable that moving “just” $1.5 billion to Bitcoin is doable. Combine this, with the thought process behind Value4Value and 1,000 True Fans, and you’ll begin to see the opportunity in front of you. Again, this is already happening. Artists are getting paid in Bitcoin, right now.

Since it is the art that is driving the service and experience of airplay, concerts, or passive listening, artists should not be indebted to labels and middlemen whose concocted percentages cover exorbitant executive salaries for A&R reps, label staff, and collection agencies (few of which actually play an instrument or sing a tune, by the way). Rerouting revenue from the legacy processes that created this system is now possible.

If the past is any indication of the future, we know that the legacy companies of the music industry have been slow to embrace technological changes, so they can keep more than their rightful share of the profit. Their control has inexplicably broken the music industry and made things worse for independent artists. Where is the equitable pay? Where are the new artists? Where is the equal representation across society’s races and genders? Closed distribution (and “pay to play”) platforms have taken away artist’s ability to connect with their audience directly. Radio stations are now centralized networks that play the same songs all around the country. Social Media tools like TikTok are being exploited by the industry to use as a marketing test bed where good songs are getting burned for the sake of the record labels bottom line. And of course there’s the issue of major labels flooding DSPs with bogus content to boost their own playlists, and, the fun game that ticket companies play with service fees. All of this can change if intermediaries are removed. Believe me, when the major labels, radio stations, DSPs and ticketing companies get behind Bitcoin (and what is already happening with independent artists), they will use everything in their power to hold on to their control. That’s why it’s so important for independent artists around the world to get in on this, NOW.

Every artist I have ever known, and after 30 years in the music industry I’ve known a lot, wants nothing more than to make a living doing what they love. Most aspiring musicians are in it to be the best possible artist while controlling their artistic and financial sovereignty. Artists now have the ability to take back that power, rerouting the revenue stream from legacy providers and worn-out processes. Bitcoin allows this. Bitcoin merges that innate desire with the potential for artists to connect with a global audience like never before and to maybe even, finally, attain some level of financial and artistic sovereignty they are entitled to.

Throughout history, mankind’s freedoms have expanded and contracted, like the rise and fall of governments and religions, driven by technological gains that provided new insight, expanded education and options, and freedom. The converse is also true, and plenty of regimes have used the advanced technology of their time to subjugate their citizens. We’re on the verge of another massive cultural breakthrough with the advent of web3 technologies and Bitcoin. But we’re also closer to the edge of absolute corruption, surveillance, and servitude than we’ve ever been before – collectively, and individually – mainly because of technology. It’s no secret or surprise that citizens of the most advanced countries around the world are disappointed and disheartened in their countries, and many feel that their economic freedom teeters on the edge of collapse, again. The financial and artistic sovereignty that Bitcoin provides could very well be your best bet for a secure future.

As with any new advancement there is great risk for fraud and exploitation. I don’t want anyone to get their hands on your future. I believe that Bitcoin may in fact provide a mechanism to end artistic poverty and create financial sovereignty for the future. More to come on all of this but do yourself a favor and at minimum, join the conversation and educate yourself. Education will always provide you with the highest form of liberty – the ability to make your own decisions.

Remember,

More money to you, and, sent instantaneously.
Less interference from middlemen and more sovereignty!
Royalties that are easier to track.
Higher fan engagement, with a new fan base.
Additional investment opportunities, merchandise and long-term financial security.

Join us.

Sign up for the first of it’s kind, Phantom Power Music Incubator, and we’ll teach you everything you need to know to protect your rights and regain control over your music revenue.

Boosting is Loving 💗

**Updated 4/20/24 References (alphabetical):

1,000 True Fans

21 Lessons on Bitcoin – 21lessons.com

An Introduction to Crypto Music and its Transformation of the Music Business – TheatreArtLife.com

A Field Guide to Music’s Potential Crypto Boom – Rolling Stone

Bitcoin for Everybody – a free class on Saylor.org

How Cryptocurrency is impacting the Music Industry – Coinscreed.com

How Music Royalties Work – Soundcharts.com

Lightning Network Capacity - Bitcoinvisuals.com

Music Royalties Explained: The Ultimate Guide for 2023 – Indie Music Academy

Satoshi Nakamoto Institute – the White Paper that started Bitcoin