So, what does cryptocurrency have to do with cannabis? Spoiler alert: a lot more than you think.
With cryptocurrency being more popular than ever with names like Bitcoin in the forefront, you’re going to want to jump in the trend, and we’re here to give you all the info you need to do so.
What is cryptocurrency?
Unless you’ve lived under a rock these past few years, you’ve probably noticed a rising trend in cryptocurrency. But for those who don’t know the gist of it, here’s a quick rundown. Cryptocurrencies are essentially just like the currencies we use today, such as dollars and euros. The difference is that cryptocurrencies are stored digitally using secure technology, and just like real-life currency, various cryptocurrencies come at different values.
So, why is cryptocurrency such a popular investment option these days? A great way to look at cryptocurrencies is to treat them as precious ores and gems, like gold. For example, Bitcoin, the most popular cryptocurrency, has never been “‘printed” since its creation back in 2009. Only 21 million Bitcoin exist, and it isn’t all available, either. Computers “mine” the Bitcoin to obtain it, and so far, over 18 million Bitcoin have been mined. See the similarities?
Cannabis and cryptocurrency
Now that you know how cryptocurrency works, let’s talk about some of the cryptocurrencies that have ties to cannabis — specifically, CannabisCoin (CANN) and the HempCoin (THC). These cryptocurrencies are used mainly to make transactions related to cannabis. Instead of using cash or even other currencies such as Bitcoin, more and more dispensaries are accepting cannabis cryptocurrencies as a form of payment.
“But why?” you may be asking. With many ways to buy and sell cannabis, what makes cryptocurrencies so different? The answer lies in the simplicity of cryptocurrency transactions. You know how whenever you make an ATM withdrawal, transfer money from your PayPal, or even just check your balance, you can get charged a fee for it? None of that happens with cryptocurrencies. They’re not run by any middleman or third party so they’re not subject to the same conditions. Plus, that means you aren’t at the mercy of getting your funds frozen by a bank. This is especially great for buying and selling cannabis due to the controversial nature the substance still maintains.
The secure and direct nature of cryptocurrencies is what piqued the interest of the cannabis community. For dispensaries in particular, having little to no drawbacks with each transaction makes it an easy payment option to offer.
CannabisCoin is arguably the most popular cannabis cryptocurrency today. It’s had a little bit of a rough ride to where it is now, but it promises a future of streamlined cannabis buying and selling.
CannabisCoin was founded in 2014 when cryptocurrencies were still relatively new to the world. Initially intended for medical cannabis dispensaries, its aim was to make the process of purchasing easier. Unfortunately, investors weren’t as interested in the cryptocurrency as its founders had initially hoped, and CannabisCoin fell into a little bit of a slump.
That’s not to say that CannabisCoin isn’t good at what it does, though. Currently, there are certain cannabis strains and even medicines that are exclusively made to be bought and sold using CannabisCoin. This gives the opportunity for both buyers and sellers to make transactions with various products.
HempCoin was created at around the same time as CannabisCoin in 2014. In fact, it’s one of the first 30 cryptocurrencies to ever be developed. With quite a bit of history backing it, HempCoin became a popular form of payment for many buyers and sellers of cannabis. However, its focus lies less on weed in particular. Rather, it was designed for both farmers and dispensaries of recreational and medical cannabis.
Because of this, you’ll find HempCoin often used in B2B transactions instead of client purchases at local dispensaries. This not only goes for cannabis products themselves, but for any cannabis-related equipment and supplies, too. If it’s something related to the cannabis business, you can probably purchase it somewhere with HempCoin.
And it doesn’t stop with hemp, either. The whole agricultural industry uses HempCoin, making it a versatile cryptocurrency to both own and purchase with. So even if you aren’t going to purchase anything cannanis-related, you can still find use in HempCoin in other fields.
A walk into the future
CannabisCoin and HempCoin are just two of the many cannabis cryptocurrencies. And this is just the beginning. With cryptocurrencies showing no signs of slowing down, you can expect these currencies to make their way into our daily lives in no time. Not just in cannabis, but in other industries, too.
Because of the safety and security that cryptocurrency transactions provide, it’s very likely we’ll be living in a virtual currency-run world in the near future. We already spend our lives more and more online, connected to the virtual world.
To some, cryptocurrencies appear to be no more than some trending investment fad that’ll die out eventually. To others, it’s a concept that’s just too confusing to get into, no matter how interested they may be. But for the cannabis industry and many others, it’s a step towards the future of buying and selling cannabis. The industry will change for the better, and you’ll definitely want to be there when it happens.
Guest blog by Emily Watson
Emily is a marketing specialist at Essence Cannabis Dispensary with a primary focus on the development and implementation of marketing ideas. Her main talking points are medical and recreational cannabis, cannabis marketing, and advertising.