I’ve been reading about Blockchain lately… You’ve probably heard of it, at least you must have heard of Bitcoin, and have heard the latest crypto babble that the media enjoys so much. After all a good jargon is the wet dream of every journalist.
Now this technology is supposed to be the remedy to everything… Yes! Even the music industry! And well, if it can cure that, surely it will cure cancer!
Enter Musicoin and co
In the unsigned world, I see some people rave about Musicoin for example, and how this wonderful platform is going to pay out more than any streaming platform and materialize money out of thin air, without any ads, while still being totally free for listeners. That’s pure magic or I don’t know what!
Turns out that Musicoin is only one of the many new platforms with more white paper than sense, apparently. (Boy! Do they love their white papers! They are all chock full of technical jargon that is mostly included to confuse you even more than you were). Digging a bit, without too much effort, I then found out about other platforms like Artbyte, Soundchain, Emanate, eMusic, Bittunes, Voise, Choon, Ujo (this one is funny, with Imogen Heap herself having released her “Tiny Human” song which sales amounted to a grand total of $133.20!) plus all these exotic new “currencies” dedicated to music like Musicoin but also Audiocoin, Songcoin, Metal Music Coin, Muse, Beatcoin… looks like they invent a new coin every day. Check out this website which references 1916 of these entries (as of today anyway!) Actually there is even a platform that allows anyone to create their own! Time for a BeardCoin?
My first contact with Musicoin was from links that some indie enthusiasts were sharing. Being curious I tried to listen, but the player would never want to play, so I went to the website and it looked rather messy to me. Not a really good impression overall. But OK. That’s another beta platform, right? <insert big sigh here>
Since their claim to being able to pay a decent amount per play was pretty extra-ordinary, I decided I would dig further… But I’m going to tell you straight up: I didn’t like what I found. At all.
Monkey money, monkey business
First, the value of Musicoin is in fact so fluctuant that what you read on their platform about the supposed earnings of the artists is never even close to reality. You see, first you have to exchange $MUSIC currency into another more accepted crypto currency (Like Bitcoin or Ethereum), using a convoluted process involving trading on a coin market or another (there are only a couple that can do this at the moment). The process is so ridiculously complex, involving installing a wallet application on your PC, opening an account on a couple trading sites, juggling with obscure hashes and calculating decimals, and gauging whether the time is right to “sell” your precious coins, that only seriously chronic nerds are going to want to go near it. I’m not joking, see this tutorial.
The real cost of Blockchain
The recommended process to ultimately withdraw your few Musicoin earnings is to trade them first against Bitcoin. Of course you will have to pay big fees to do so because the computing of your transaction involves a lot of computers in a pool, and it gets increasingly more complex as days go by, involving increasingly more processing power, and ultimately, increasingly more electricity. Fact is, Bitcoin today is already using 0.5% of the world’s electricity and by late next year, will be consuming more electricity than can be produced by the entire world solar panels. Let this all sink in for a moment.
And then of course, once you get your Bitcoins fractions, you will have to trade them again on another coin market into some real money, which means a lot more transaction fees (up to 50% from what I’ve seen) and a lot more electricity consumption…
Reading further on the Blockchain craziness, it turns out there is a lot of approximation and misinformation around (but of course there is, it’s a big buzzword in the press, and most journalists have no clue about the underlying technological issues, which are apparently numerous). I also found some articles that took to debunk all this hype, for example this one about eMusic (a Musicoin competitor). Let’s just say that I don’t have all the background that this guy has, but I have the general feeling again (thanks Mom, wherever you are!) that when something looks too good to be true, it generally is! Anyway, the guy wrote a book about the Blockchain scam.
So, to sum up: you get your tunes on a platform that’s pretty buggy (it’s beta), people are going to listen to them for free, you get paid virtual coins that you need to exchange against other virtual coins using a complex process, opening many accounts on various platforms, leaving more of your private information everywhere, trade on a virtual market that is bound to spiral down when all is said and done (remember the internet bubble burst? I do) and is consuming electricity at an exponential rate, which will ultimately eat all our planet resources… what’s wrong with this picture?
The worst of it
All of this and I still have another issue with this whole thing. And it’s another big one: turns out that this whole mess is again making everyone believe that it’s perfectly normal to listen to music for free, that no one needs to pay for it. Aren’t we all tired of this refrain?
If the fact that it’s all based on more hype and technological magic than reality, the fact that it’s unsustainable long term, the fact that it’s endangering our planet resources, if all of that wasn’t bad enough they are also basically saying that music is not worth paying for.
In conclusion, you know what? I wish you all good luck with this, but you can count me out. I mean until they come out with something really significant of course, like a BeardCoin for example, at which point I might trade my Monopoly money for it.