An Analogy for Musicians Looking for Clarity on their Creative Energy Worth.
By James A. Goins
Imagine a world where music is like Bitcoin, a decentralized and revolutionary currency that disrupts traditional financial systems. Both music and Bitcoin share remarkable similarities in how they challenge established norms, offer new ways of engagement, and highlight issues within their respective industries.
Decentralization and Control
Bitcoin: Bitcoin operates on a decentralized network, free from the control of any single entity, such as banks or governments. This decentralization gives power back to individuals, allowing them to manage their finances without relying on intermediaries.
Music: Similarly, music can be decentralized through the Direct to Consumer (DTC) model, where artists distribute their work directly to fans without needing record labels or streaming platforms. This approach empowers musicians, giving them control over their art and revenue.
Transparency and Trust
Bitcoin: The blockchain technology underlying Bitcoin ensures transparency and trust through a public ledger. Every transaction is recorded and visible to all, minimizing fraud and increasing accountability.
Music: Revenue distribution and rights management transparency are often lacking in the music industry. By adopting a DTC model, artists can create a more transparent system where they know exactly how much they are earning and how their work is being used. This builds trust between artists and their audiences.
Value and Scarcity
Bitcoin: Bitcoin's value is derived from its scarcity and the trust of its users. A finite supply of 21 million Bitcoins makes it a digital asset with intrinsic value.
Music: Music, especially physical formats like vinyl records or limited edition releases, can also be scarce and valuable. Exclusive content and direct sales can create a sense of rarity and worth, enhancing the value of the music beyond mere digital streams.
Disruptive Potential
Bitcoin: Bitcoin disrupts traditional financial systems by offering an alternative to centralized banking and fiat currencies. It challenges the status quo and promotes economic freedom and innovation.
Music: The industry's traditional models, such as record labels and streaming platforms, often exploit artists. By embracing a DTC model, musicians can disrupt these systems, creating fairer, more artist-centric ways of distributing and monetizing their work.
Community and Support
Bitcoin: Bitcoin has fostered a strong, dedicated community of enthusiasts who support its growth and development. This community-driven aspect is crucial to its success.
Music: Similarly, musicians can cultivate a loyal fanbase by engaging directly with their audience. Platforms like Patreon and Bandcamp allow artists to build a supportive community that values their work and contributes to their sustainability.
Innovation and Evolution
Bitcoin: As a digital currency, Bitcoin represents the evolution of money, introducing new technologies and ways of thinking about finance.
Music: The music industry is also evolving, with digital distribution, social media, and direct fan engagement reshaping how artists reach their audience. Embracing these innovations allows musicians to stay relevant and thrive in a rapidly changing landscape.
It's a Wrap
Music and Bitcoin challenge traditional structures, empower individuals, and create new opportunities for transparency, value, and community. By understanding these parallels, we can appreciate the transformative potential of music and the importance of supporting artists in innovative and equitable ways. These parallels between music and Bitcoin showcase the transformative power of decentralization. Just as Bitcoin decentralizes financial transactions, the Direct to Consumer model in music empowers artists to take control of their own distribution and revenue streams. This shift in power dynamics challenges the conventional structures of the music industry, much like how Bitcoin challenges traditional banking systems.
Moreover, the transparency offered by blockchain technology in Bitcoin transactions finds its counterpart in the music industry through direct artist-to-fan interactions. By eliminating intermediaries, musicians can establish direct connections with their audience, fostering trust and loyalty. This direct engagement ensures a fairer revenue distribution and creates a more intimate and meaningful relationship between artists and their supporters.
Scarcity and value, fundamental aspects of Bitcoin's appeal, are also relevant in the music world. Limited edition releases, exclusive content, and personalized experiences can elevate the perceived value of music beyond its intrinsic qualities. Just as scarcity drives up the value of Bitcoin, creating a sense of exclusivity and desirability can enhance the worth of music in the eyes of fans.
Looking ahead, the disruptive potential of both music and Bitcoin lies in their ability to challenge existing norms and pave the way for innovative solutions. By embracing decentralization, transparency, and community-building, artists and cryptocurrency enthusiasts can shape a future where power is distributed more equitably, creativity is valued authentically, and interactions are driven by trust and mutual support.
Like Bitcoin, no one should be able to exploit your creative energy forever without you getting a return on that creativity. The equation must be balanced. Those gifted to create must also make a living to continue the cycle of creation.
James is a member of BMI, The Dramatist Guild of America, The American Composers Forum, The Playwrights Center, The Academy of Scoring Arts, The National Association of Negro Musicians, Inc, Composers Diversity Collective, Theatre West, The Society of Composers & Lyricists, and the American Society of Music Arrangers and Composers. He is the Executive Director of the Laity Institute of the Arts, a Private Arts Foundation that teaches children and adults the visual and performing arts. He is also the CEO and Founder of SignalHarmony, a 24-year-old business consulting firm that assists Executive Business Owners with
Even though Bitcoin can fluctuate by 25-40% ANY income from my music would be worth that fluctuation. At least I could make a living from my work. Looks like I'm taking my music down, too. I need to find and create my tribe. Great article. Thank you for sharing.