Get in the zone with a free pair of SONY Noise Cancelling Headphones from Bloom&Oil! Enter Now

Win a pair of SONY Noise Cancelling Headphones from Bloom&Oil! Enter Now

pexels-kindel-media-7668032

Marijuana Money Matters — Cannabis, Crypto & Capital Gains

Although the marijuana market is smokin’, it’s still impossible for weed businesses to open a bank account. Since cannabis is federally illegal, dispensary owners must think outside the box regarding “marijuana money matters.” Given this crazy legal environment, is it any wonder cannabis businesses are getting into crypto?

 

Long before the 2018 Bitcoin bull run, many weed enthusiasts supported blockchain tech and decentralized finance (aka DeFi). These novel protocols have allowed countless shops to thrive despite the federal ban on weed. Even if you’re solely a cannasseur, it’s worth knowing how cannabis, crypto, and capital gains are creating “green” opportunities for this sector.

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.

What Are The Best Cannabis-Centric Cryptocurrencies?

While Bitcoin is the king of cryptos, that doesn’t mean it’s without its flaws. Most notably, businesses complain about Bitcoin’s relatively long transaction time (~ 10 – 15 minutes). Also, when the Bitcoin network is congested, the transaction fees could be pretty steep.

As the Bitcoin team works to address these issues, thousands of developers have put forward “altcoins,” each with different features and value propositions. Interestingly, there are even crypto projects tailored to help those in the legal pot industry. Here are a few of the hottest cannabis cryptocurrencies.

Potcoin

Potcoin Logo Unquestionably, Potcoin is the most respected coin in the cannabis crypto space. Although this blockchain first emerged in 2014, it gained huge media hype after sponsoring Dennis Rodman’s 2017 trip to North Korea. Although this coin has fallen from its 2018 highs, it remains the largest cannabis crypto with a current market cap of about $7 million.

In addition to developing its fast peer-to-peer payment system, Potcoin has created a few proprietary ATMs for many Colorado dispensaries. In recent years, the Potcoin team has also transitioned to a “proof of stake” model, allowing anyone to stake their Potcoins to help secure the network.

Unsurprisingly, the total supply of Potcoins is set at 420,000,000. Currently, Bittrex is the largest crypto exchange that offers Potcoin.

CannabisCoin LogoCannabisCoin

While CannabisCoin hasn’t grown as much as Potcoin, it’s also considered an “OG” weed-focused crypto. Listed under the ticker CANN, CannabisCoin promises to offer near-instant transactions for customers and dispensary owners.

Marketed as “The Marijuana Bitcoin,” CannabisCoin still uses a “proof of work” model to mine coins and validate transactions. Technically, anyone who wants to earn CannabisCoins could run the team’s official mining software. According to CoinGecko, the total supply of CannabisCoin is 106,000,000.

DopeCoin LogoDopeCoin

Not to be confused with Dogecoin, DopeCoin is a relatively small cannabis crypto with a current market cap below $1 million. Although this project isn’t as robust as other cannabis coins, the DopeCoin team promises dispensaries lighting-fast transaction speeds with minimal fees. Like Potcoin, DopeCoin operates on a “proof of stake” model that allows coin holders to stake for interest.

While DopeCoin isn’t as large as Potcoin or CannabisCoin, it has a growing community of supporters on Telegram and Reddit.

What Cannabis Companies Could You Use Crypto On?

Once you’ve got a wallet stacked with crypto, you’re probably wondering where you could spend all of these coins. Although every business has different payment options, there are a few cannabis companies that will accept cryptos. Be sure to ask your preferred retailer for their accepted payment methods.

Here are just three popular online vendors that have crypto payment options.

Bluebird Botanicals LogoBluebird Botanicals

From its humble beginnings in 2013, Colorado’s Bluebird Botanicals has grown to become one of the hemp industry’s most respected brands. Best known for its broad-spectrum CBD oils, Bluebird Botanicals also offers various CBD gummies, creams, and pet treats.

Bluebird Botanicals is also a proud supporter of Bitcoin. In fact, this company frequently offers discounts for those who purchase with Bitcoin, so be sure to check their promos before checking out!

Endoca LogoEndoca

Endoca is a Dutch-based company that was one of the first brands to offer low-THC hemp online. This business was also an early adopter of cryptocurrencies, especially Bitcoin. From 2010 till today, Endoca allows customers to purchase CBD products using Bitcoin. Currently, this company offers a 30 percent discount if you send your Bitcoin through BlockIO.

Calypso CBD LogoCalypso CBD

Calypso CBD is a Virginia-based company dedicated to offering clean, federally legal hemp products. For your convenience, Calypso CBD is integrated with the publicly-listed exchange Coinbase. Through the Coinbase Commerce feature, you can pay with various cryptocurrencies, including Bitcoin, Ethereum, and Bitcoin Cash.

Cannabis Stock Picking — How Could You Profit From Pot?

Although marijuana isn’t on Main Street, it has undoubtedly made its way onto Wall Street. Indeed, many cannabis companies get off the ground by going public. With the rise in commission-free trading, many retail investors have also gotten into cannabis stocks.

With a market cap of $13.6 billion and a booming job market, it’s no wonder more people see a lot of “green” in the cannabis sector. However, it’s crucial to recognize cannabis stocks are still highly speculative. Just like investing in cryptos, prospective buyers should assess their risk tolerance before buying a cannabis stock.

What Are The Hottest Cannabis Stocks Right Now?

Nowadays, it seems like new cannabis stocks enter the market every single day. While we can’t go over every equity in this post, here are three of the most exciting names to keep an eye on.

GrowGeneration Corp. (GRWG)

Colorado-based GrowGeneration Corp. brands itself as the “pick & shovels play” for the cannabis space. Instead of handling cannabis directly, this multi-state chain sells growing equipment to cannabis farmers. On top of hydroponics technology, GrowGeneration offers a plethora of nutrients, soils, and lights for indoor cultivators. So, if you want to invest in a company that benefits indirectly from cannabis sales, GRWG may be worth researching.

GW Pharmaceutical (GWPH)

GW Pharma is one of the largest pharmaceutical companies focused on medicinal cannabis. Most famously, this company released the high-CBD epilepsy drug Epidiolex, which the FDA approved in 2018. Researchers at this British-based company have also been testing numerous medications for conditions such as MS to autism. Anyone interested in the potential for medical marijuana should take a peek at GW Pharma’s pipeline.

Trulieve Cannabis Corp. (TCNNF)

Although Trulieve is headquartered in a non-recreational state, many investors believe it has a ton of potential. This Florida-based marijuana company now operates over 70 medical dispensaries, most of which are in the Sunshine State. If Florida fully legalizes marijuana, Trulieve is in a prime position to become the dominant player. Plus, Trulieve has been expanding into other states in recent years, which could make it a national contender.

A Few FAQs On Cannabis Stocks & Cryptos

Can I Buy Weed Or CBD With Bitcoin?

Whether you could use cryptos to buy cannabis depends on your dispensary. Since digital assets like Bitcoin are relatively new, not everyone feels comfortable accepting them. You have to ask your business which cryptocurrencies (if any) they accept. If they do, you can send crypto from your wallet to the company’s QR address.

Where Do I Buy Cryptocurrencies?

The easiest way for beginners to buy cryptocurrencies is to sign up on a trusted centralized exchange. Some of the top companies offering major cryptos include Gemini, Crypto.com, Coinbase, Binance, and Kraken. Unlike platforms like RobinHood or PayPal, these exchanges allow you to take your coins off the market and store them in a private wallet.

What Are Marijuana NFTs?

Short for non-fungible tokens, NFTs are often likened to “digital signatures.” While NFTs use the same tech that powers Bitcoin, they only have one address on the blockchain. This means NFTs are 100 percent unique (i.e., they’re not fungible!).

Recently, NFTs have become wildly popular with sports fans and art dealers. NFT vendors sell the “rights” to various paintings, clips, and memes on popular sites like NBA Top Shots.

NFTs have also become trendy in the cannabis space. Recently, a few dispensaries have sold weed-influenced artwork to online cannabis fans. Since these tokens are non-fungible, some cannabis fans believe NFTs could be used to purchase the “rights” to a hybrid strain or settle legal disputes.

While NFTs holds a lot of promise, there’s still a ways to go before we fully understand their potential. For a more in-depth look at cannabis NFTs, you should read through this previous Bloom & Oil post.

Where Can I Buy A Cannabis Stock?

Today, dozens of reliable investment apps charge little to no transaction fees on equities, including cannabis stocks.

Unquestionably, the most popular app with new investors is RobinHood. A big reason for RobinHood’s success is that it allows traders to purchase fractional shares of their favorite companies.

However, you could also purchase cannabis stocks on platforms like TD Ameritrade, E-Trade, WeBull, or Acorns. Be sure to review all of these investment options to find your ideal fit.

Final Thoughts On Investing In Crypto Or Cannabis Stocks

As the crypto and cannabis markets blossom, there’s no shortage of hype swirling around the Internet. Even if you’re not in the cannabis business, chances are you’ve considered investing in these industries. However, it’s essential to evaluate your risk tolerance before jumping into these markets.

Both of these industries are relatively new, which is both good and bad news for investors. On the positive side, there’s a lot of potential for future growth (and potential profits!). On the downside, these industries tend to attract a ton of speculation and scammers.

Please be sure to do careful research into crypto projects and cannabis companies before getting involved in these markets. Also, please never invest more than you’re willing to lose!

you must be at least 21 to view this website

Sorry, you have to be of legal age to visit this site.