The cannabis and cryptocurrency industries have both been getting more attention from many people in the last few years. The United States, in particular, is becoming a nation that’s accepting the use and selling of the cannabis plant more.
Meanwhile, cryptocurrencies are still on the minds of many when it comes to making investments and making transactions online. However, on which part do both industries meet? Is there are a common ground between the two? Here, we’ll answer what’s the link between Bitcoin and the legal cannabis industry.
Despite the fact that more states are now legalizing either the recreational, medicinal or both uses of cannabis, it is still federally illegal to sell. This is why bank transactions that concern anything in the industry are difficult and prohibited even in states where it’s legal.
Bitcoin can still be used by businesses and buyers for sure, but the benefit of using cryptocurrencies that are more specific for the cannabis industry is the speed of transactions. Some cryptos made for the industry promise to process transactions as quickly as 40 seconds.
PotCoin is one of the earliest cryptocurrencies for the cannabis industry. This was launched in January 2014 to help solve the banking problems that the people in the industry are encountering. PotCoin initially wanted to capitalize on the legislation of cannabis businesses in Colorado. It even made a bit of noise when it installed its own ATM at a dispensary in the state.
However, PotCoin didn’t really become quickly popular. It was only in 2017 when it finally got the attention of many. The company decided to fund NBA star Dennis Rodman’s trip to North Korea on June 12, 2017. Photos and videos of the NBA star wearing a potcoin shirt were released to the public and this just really put the company in the spotlight.
With that happening, the value of the company shot up to 76 percent in just one day. Its market cap in 2014 was worth 81,547 US dollars, but currently, it’s already worth over 2 million US dollars. Potcoin has a limited supply of 420 million coins and over 222 million of these are in circulation.
Other popular cryptos for the industry out there are CannabisCoin (CANN), DopeCoin (DOPE), HempCoin (THC), CannaCoin and (CCN). Most of these are established in 2014 when Colorado has legalized the use of both medical and recreational use of marijuana. In fact, around 30 cryptocurrencies were made in that same year for the industry.
Aside from the industry having its own cryptocurrencies, which can also be linked between the two is the use of blockchain technology. Cryptocurrencies are basically running through this technology and this can be applicable to other businesses.
An example of this is a business in Canada where the industry is now completely legal to operate. CannaSOS is a blockchain-based social cannabis network. It uses blockchain tech to connect buyers, sellers, and even advertisers through a transparent network.
It’s basically a centralized platform to let cannabis enthusiasts meet other enthusiasts and people in the industry. Since the site uses blockchain, the products listed on the site have as many details as one my need. The history of production, the origin of strains, and other details are all included here.
Other sites or platforms that are similar to this are The Cannabis Hemp Exchange or CHEX and Paragon. Both are promoting transparency and standardization of cannabis supply chains. On these platforms are where a buyer and seller could use cryptocurrencies.
Despite the use of cryptos, there’s still no denying that industry would still face a lot of hurdles not only in the US but in many other countries. Canada is also having problems when it comes to the sales of cannabis products despite its legislation. The country is still facing supply problems, which is making it have a hard time competing with the black market.
Overall, the use of cryptocurrencies may be the future of the cannabis industry. This is as long as the US won’t federally decriminalize its use and production. The Trump government is not really looking to legalize it just yet and so cryptocurrencies made for the industry will just continue to flourish.