Jay Creed, 53, encouraged the boy to make a video of himself carrying out sexual activity on at least 20 occasions, Truro Crown Court heard.
He also gave the boy cryptocurrency to play games, the court was told.
Creed, of Porthcurno, Cornwall, admitted two charges of causing or inciting a child into sexual activity.
He also admitted a count of making indecent images.
The court was told Creed referred to himself as “sugar daddy” and was in contact with other children.
He was arrested after the boy’s mother discovered what was happening and contacted police.
She told the court in a statement her son had lost his confidence and was scared to socialise.
The court heard police had to force entry to Creed’s home as they saw him running to destroy his computer hard drive.
Creed had also been jailed in the past for sex offences against children, the court was told.
His barrister, Jason Beal, said: “He won’t be cured of his criminal deviance but it can be managed.”
Despite this mitigation, sentencing, Judge Simon Carr warned Creed he may have to “serve all of it”.