Marijuana and Cryptocurrencies
Marijuana and Cryptocurrencies are two different industries that are now coming together.
By 2026, experts predict that the American marijuana industry will reach a market valuation of $50 billion. At the same time (late 2017), the value of bitcoin reached about $18,000 for one coin. Many Companies try to find common ground for the markets of all those new “coins” and marijuana.
Thanks to this, the longtime problem of payment may soon be resolved. Because of the restrictive legislations on marijuana, a lot of vendors find it hard to accept other means of payment apart from cash. But with bitcoin, they can now accept payments with more flexibility. The big issue here is that federal laws restrict financial transactions on marijuana. This is a severe hindrance to the marijuana industry. As a result a lot of banks and big players in the financial sector do not allow Cannabis vendors to open accounts with them. These restrictions still occur even after the legalization of marijuana for medical and recreational use by various states.
Since marijuana dispensaries are restricted from the banking sector, they have tried to use other non-cash payment methods, but they have not had too much success in the adoption of these new revolutionary technologies for cannabis related transactions. A lot has been said and written about the adoption of the marijuana industry by the financial sector with talks about special credit cards and bank updates, but till date, nothing has been done. This might change in the near future though.
Bitcoin is a very popular digital currency that has been making waves. Now, there are other, marijuana cryptocurrencies that are getting more and more popular.
These new ways of transactions are fast becoming a preferred choice of payment in the industry. Cryptocurrencies are based on blockchain technology, and they are highly secured, anonymous with a high level of encryption. Thanks to these payment solutions, both buyers and sellers in the marijuana industry save a lot of costs, and they can make even larger transactions. Blockchain is an easily scalable technology that can be used in all kinds of shops from small to large.
Cryptocurrencies for the Cannabis industry.
THC or HEMPCoin:
HempCoin is one of the first 30 currencies that was developed in 2014. It is a cryptocurrency that is focused on the hemp/marijuana industry and the agricultural industry. The value has been steadily increasing, but many consider it as still undervalued.
CANNA Coin (CCN):
Canna Coin is a cryptocurrency that runs on a blockchain network like Bitcoin. The coin utilizes Peer2Peer technology. Money can be transferred securely between two users without any third-party interference. This network allows people to send money across the network very quickly in a secured manner.
Pot coin is a marijuana cryptocurrency that was introduced in early 2014. It is one of the most popular marijuana cryptocurrencies on Poloniex, a cryptocurrency trading site. Pot coin has risen in value, but analysts see it as still undervalued as its price is less than 10 cents for one coin.
DOPE Coin Gold:
DopeCoin is one of the most promising cryptocurrencies in the world. It has a strong customer base giving it a lot of support. The coin is available to purchase on Bittrex, and a lot of marijuana dispensaries are using it already. This has given it a lot of attention in the press. The coin was created with a vision of creating a safe way of buying marijuana online. The supply of DopeCoin is limited to 200 million coins. About 111 million of those coins are in circulation. DopeCoin is a POS or Proof of Stake currency that can earn one a 5% annual interest.
MARIJUANA COIN (MAR):
This coin can be bought on the Cyptopia exchange. It is an exchange with a lot of coins. This coin is also undervalued, and it is sold at less than 2 cents for one coin.
DASH is the most user-friendly of all cryptocurrencies. It was introduced to the marijuana industry to give consumers another method of making payments. It was introduced in April when a partnership was formed between DASH and Alt Thirty Six to create a form of POS or Point Of Sale system in the marijuana industry.
PARAGON COIN (PRG):
This coin utilizes various ideas from the marijuana and cryptocurrency industry and implementing them into simpler ideas. It provides a way of tracking marijuana products from the raw plant to the consumer. It will be perfect for professional transactions. The tokens may not be used by final consumers that buy medical marijuana. It will be bought by transporters, dispensaries, suppliers and all business people involved in the marijuana industry. An Initial Coin Offering (ICO) has been completed by the coin, and the coin will be on the market very soon.
These cryptocurrencies plan to disrupt the marijuana industry and solve the problems of financial payments faced by the industry. But today, only a few people use them, and a lot of them are still undervalued. But as times goes on, they will see more usage in the marijuana industry, and they will be readily used as mediums of payment.
Marijuana businesses still accept also Bitcoin more than other cryptocurrencies due to its popularity.
But with all the interest that companies are making to integrate blockchain to marijuana, a lot of consumers haven’t shown much interest in this new method of payment. This is quite surprising as one will think that people will readily jump at a chance to make payments easily. Plus, a lot of people are aware of the way financial institutions have ignored the marijuana industry.
Some think that the reason for this is because a lot of marijuana consumers are not keen on downloading a special app, converting their money to unknown currencies and making purchases with it. There is also the thought that with the increased legalization of marijuana, it is getting easier to purchase the product legally, and so there might not be a need to get involved in cryptocurrency just for buying their favorite cannabis strain like Sour Diesel. Also, a lot of people also feel safer with cash transactions as they are hard to trace. They feel that electronic transactions might leave traces. Apart from the consumers, the marijuana businesses themselves are not so keen on cryptocurrencies too. Also, very few people in the world use cryptocurrencies currently. They are less than 20 million users which may not make a lot of sense to the average consumer.
Here, at MmjDoctor, we accept bitcoin since 2016, in any case the future will show how these 2 New Industries will find a way to work with each other.
Visit Local Crypto Store in San Francisco to buy Bitcoins and other crypto for cash.