Bitcoin For Buds — Why Is Crypto A Good Fit For Cannabis?
When the mysterious Satoshi Nakamoto launched Bitcoin in 2008, he probably wasn’t concerned with helping customers score dank buds. However, the cryptocurrency revolution has been a boon for the budding cannabis market.
As you could imagine, dealing with a federally illegal product creates quite a few issues for dispensaries. From taxes and loans to debit and credit transactions, weed shops don’t enjoy the financial conveniences of other industries.
Luckily for budtenders, cryptocurrencies aren’t tied to a government or bank. Blockchain networks validate transactions on a public ledger, which helps ensure trust without centralized control. The decentralized nature of cryptocurrencies allows dispensaries to manage money without worrying about state intrusion. Many crypto coins also offer MMJ patients enhanced privacy.
While cryptocurrencies are volatile, they have become increasingly mainstream in recent years. Now that companies like PayPal offer crypto payments, cannabis companies have an even easier time accepting their preferred coins.
Plus, cannabis companies have the option of swapping their cryptos into stablecoins like USDC, BUSD, or Tether. All of these cryptos are “stable” because they’re pegged 1:1 to an established currency like the US dollar.