THE NEXT BIG CRYPTO INDUSTRY: PART 4 — CANNABIS CRYPTOCURRENCIES
Hi Crypto Network,
What a volatile few weeks it has been for all of us! Markets have been a bit sleepy over the weekend with Ethereum holding steady, while Bitcoin Cash, Litecoin, and Monero all dropping back.
Bitcoin has lost a fraction since yesterday and is currently trading at $6,484.
The critical level is still the $6,600 resistance point for BTC though bullish momentum appears to have waned over the weekend. Ethereum is holding at $216 at the time of writing.
Today’s article has a focus on how the Pot industry is being transformed by Cryptos, this is Part 4 in the Next Big Crypto Industry series which has covered, Gaming, Oil, Gold, and the Energy Sector, all of which are being transformed by cryptos. Cannabis Cryptocurrencies however I believe is an industry which is offering clear utility and solving a real need for the business and the consumers in this sector.
HOW CRYPTOCURRENCIES ARE CHANGING THE CANNABIS INDUSTRY
We all know 2017 was the year of the Crypto Bull run outperforming all major markets and showing unprecedented up-shifts making everyone from small traders/investors into seemingly financial masters. However, one of the top performing industries in the more conventional markets were marijuana stocks. Whereas the broad-based S&P 500 looks like a veritable flat line next to the growth in Cannabis cryptocurrencies valuations over the last year or two, some pot stocks have made notable one and two-year gains that would’ve come close to rivaling the gains in some digital currencies.
THE UTILITY OF CRYPTOS AND HOW THEY ARE REVOLUTIONISING THE POT INDUSTRY
Cryptocurrencies are helping to shape a cannabis industry that’s facing multiple hurdles, especially in the United States where pot is still illegal at the federal level.
CRYPTOCURRENCIES ARE BRIDGING THE GAP BETWEEN BANKS AND CONSUMERS
Banks and institutions have historically not wanted anything to do with this sector causing major infrastructure issues for businesses and consumers in this sector, going as far as disallowing consumers from using debit and/or credit cards when purchasing pot in legal states. Since marijuana is a federally illegal substance and is illegal in many countries across the world. Banks generally view any assistance to marijuana-based businesses as a potential criminal and/or fine-able offense.
This is where crypto coins come into the industry acting a bridge, or an intermediary between banks, consumers, and the pot industry.
Adoption for cryptos and the challenges facing cryptocurrency adoption are all too familiar. Despite operating in the public sphere for the better part of a decade, cryptocurrencies are still viewed as a fringe financial tool by the mainstream media, public, and financial institutions. Part of this is practical. Cryptocurrencies are relatively new if viewed from the thousand-year history of currencies, and they do not yet enjoy day-to-day use anywhere outside of a few tech enclaves in Malta, Puerto Rico, and some major cities in the U.S. and Asia.
THE SYNERGIES BETWEEN CRYPTOS AND THE CANNABIS INDUSTRY
Cannabis operators can rely on a blockchain tailored for their use as both a store of value and a transaction medium that’s more secure and easier to handle than cash. At the same time, the blockchain gets a ready-made group of adopters to display as a real-world test case. If the blockchain works well for securely tracking and handling cannabis transactions, then other industries may be more likely to jump onto the Blockchain for their own operations and transaction needs.
Both industries have a lot to prove, both to the public and to regulators. The blockchain is practically designed for transparent, easily accountable transactions. This gives cannabis operators some safety from government regulators looking to ensure that product isn’t being moved into still-black markets, and it gives would-be cryptocurrencies some credibility in terms of handling large numbers of day-to-day transactions.
TOP 2 MARIJUANA CRYPTOCURRENCIES
1. POTCOIN (POT)
Currently sitting at number 369 in market capitalization, and trading at $0.036 per coin, POT can be traded on the larger and major crypto exchanges Bittrex, Poloniex, and Cryptopia.
PotCoin is in a limited supply of, you guessed it, 420 million coins, with close to 219 million in circulation. With its recent transition to Proof-of-stake, investors can earn 5% annual returns on their PotCoins. One point to note is that PotCoin claims transaction speeds of 40 seconds, which are pretty impressive compared to those for Bitcoin.
2. HEMPCOIN (THC)
Currently sitting at number 370 in market capitalization, and trading at $0.032 per coin, THC can be traded on the major crypto exchanges like Bittrex.
HempCoin’s focus is less on individuals using it to buy cannabis and is instead designed to be used by the farming industry and medical/recreational dispensaries. HempCoin’s website claims that the currency can be used to “facilitate transactions between marijuana farmers and the local dispensary shops” as well as purchasing gear and tools used for farming marijuana. It is also very interesting to align this model to any other industries in the agricultural sector not only Marijuana, so this has a very strong supply chain application across the wider agriculture sector.
If you’ve booked your session above, we look forward to speaking with you soon!
Hopefully, you have enjoyed today’s article. Thanks for reading!
Have a fantastic day!
Richard Baker Live from the Platinum Crypto Trading Floor.