It began with Waves’ announcement that it was accepting bitcoins as an alternative to established currencies in exchange for its plug-ins. A newsworthy move, and one that prompted a closer look at Bitcoin and its place in audio…
A journey through new money, new tech, crime and corruption ended at the door of a California recording studio, where Tim Moore sees an exciting future for Bitcoin in music.
With the press surrounding the Silk Road website and its involvement in money laundering, drug trafficking and assassination, it’s no surprise that there is a wariness around Bitcoin. Along with their arrest of Ross Ulbricht, FBI officers seized 173,991 bitcoins (US$150m) as part of the investigation. Even without these negative associations, the move from familiar finance (no matter how tainted) to a completely new ‘virtual’ model requires extensive investigation and a measure of faith.
Waves adoption of Bitcoin is based on solid business thinking and an eye for opportunity: ‘It allows you to bypass currency exchange issues,’ says Waves International Marketing Manager, Udi Henis. ‘Subsequently, friction costs are low. Using Bitcoin, the verification is done before the purchase, thus eliminating cumbersome verification and identification procedures.’
In contrast, producer/engineer Tim Moore has come to Bitcoin through his York Recording facility in Los Angeles – the first studio to embrace Bitcoin. Originally a musician/engineer from Auckland, New Zealand, he produces albums under his production company, Más Music Productions: ‘I own York Recording, the premier recording studio in Highland Park, which opened in 2009 and is the home base for Más Music Productions,’ he confirms. ‘I’ve been fortunate to engineer shows involving world-class acts such as Donovan, The Black Eyed Peas, Foo Fighters, Naughty By Nature and Christina Aguilera.’
His introduction to Bitcoin came in 2011, through LA-based singer/songwriter Nathanial Castro.
Coining it
‘Nathanial had mentioned Bitcoin to me in a discussion about being an independent artist and the demise of the music industry, as we knew it,’ he explains. ‘I was preparing to produce his Photographs EP album, and he was interested in what opportunities Bitcoin might bring in funding indie artists. He convinced me to accept Bitcoin as payment for the album, and that pretty much kicked off my interest in Bitcoin.
‘I was initially attracted to the creative technology and philosophy behind the currency, and then saw definite advantages over traditional forms of payment. I’m really inspired by new creative thinking and being able to make agreements between two parties and perform financial transactions, without the involvement of a third party – fees and so on – was a great selling point.’
Anyone who has looked into Bitcoin will know that it’s pretty unfamiliar territory and, while it’s well documented in every respect from its financial model to the technology of Bitcoin ‘mining’ and security issues, it presents a serious learning curve.
‘There was definitely a learning curve involved in setting up various accounts and wallets to safely trade and store Bitcoin,’ Moore agrees. ‘I’m a new technology kind of guy and deal with a lot of high-end and somewhat complicated audio equipment, but even for myself I had a couple of hiccups along the way.
‘As with any financial/business decision, I try my best to minimise the risk I can control. I treat Bitcoin like any cash transaction and take the necessary steps to protect myself, but it’s not a major concern for me nor is it a deterrent from utilising the technology in the first place.’
If Moore himself sees opportunities for the music business in Bitcoin, he has also become something of an ambassador among his clients: ‘For the most part it’s been really positive,’ he reports. ‘There are the obvious questions about “what is Bitcoin?” but once I field a few questions, they’re really intrigued. I feel that creative people –musicians – are generally already operating outside of the box, so when a new concept or technology such as Bitcoin comes along they’re quick to adapt. Going from, “the world is flat” to “sorry we just discovered that the world is actually round” is a much easier transition if you are already operating outside of the status quo.’
How much has this enthusiasm translated into Bitcoin business?
‘As word of Bitcoin spreads I’m getting more and more inquiries,’ he replies. ‘I’m always really excited when a new client wants to make a Bitcoin funded album, and I’m working towards being a 100 per cent Bitcoin funded recording studio.’
He readily admits that implementation of Bitcoin in the music business is still in its infancy, but predicts that it will breed some revolutionary new distribution possibilities: ‘Independent artists are now also their own independent record labels, PR and distributors, so Bitcoin could offer new and exciting ways for these artists to reach their audience. How that will look at street level might be too early to predict.
‘I have a business launching this year that will utilise Bitcoin as the primary transaction tool to independently distribute music globally. I’m interested to see whether, by lowering or eliminating fees and third -party involvement in distribution, we can’t reach a wider audience and have artists retain a larger portion of their own profits. I’m hoping it becomes an empowering tool for the independent music scene everywhere.
‘I’m often asked about the financial aspect of Bitcoin as a currency but what I’m more excited about is the technology and creative thinking behind it,’ he adds. ‘I’m inspired by its possibility to reshape how we live, and to change our relationship with both art and music – much like the internet has influenced how we consume music, it could have a profound effect and I see that as wholly positive.’
With an eye to helping smaller groups and unsigned bands (‘ultimately more fulfilling’), Moore is currently producing music ranging from hip-hop to rock and Latin full time. He also has a number of ventures launching in 2014 including a global music service.
‘This will be a “Bitcoin only” record label, where we will solely use Bitcoin to sell and promote music and merchandise,’ he says. ‘One of my other passions is vegan eating. My vegan food blog – VeganFatKid.com – is also set to launch in March of 2014 and, again, there will be a definite Bitcoin aspect to it.
‘If the Chinese are calling this the Year of the Horse, then I’m rebranding it Year of the Bitcoin.’
See also:
Bitcoin: The Dark Side of Money
