Cryptocurrencies were created in direct response to the financial crash in 2008. Satoshi Nakamoto, the creator of Bitcoin was tired of seeing big corporations getting bail outs and still continuing to be greedy. Anytime you go against big corporations or big banks, expect to lose. However, Bitcoin has shown nothing but resilience ever since even with the big dips in the market over the past few years. This shows it has a strong foundation to survive in the long run but no one expected much from it. We are now seeing cryptocurrencies being more helpful than just being a peer to peer payment method. With the invention of the blockchain, the possibilities are endless. Supply chain cryptos are making the world a better place while cryptos dealing with IoT are making the world more efficient. With the legalization of recreational marijuana, more states are running into problems that crypto is helping them solve.
Why We Need Cannabis Cryptos
Big banks control many aspects of life as we have come to discover but with the legalization of recreational marijuana across the United States, banks are still not letting up. Due to it being federally illegal, banks cannot accept money that comes from marijuana transactions, regardless of the state’s legality. This means that everything has to be done with cash. There are hundreds of thousands of dollars being exchanged inside dispensaries and this bring up security issues. Keeping all that money can open you up to getting robbed. On top of that, you have to pay all your vendors and employees with cash which can become a headache. Cannabis cryptocurrencies have still not become the norm but more companies are coming up with new innovations for the industry.
How are They Used?
Digital currency is still fairly new but cannabis cryptocurrencies are started to gain some traction. As much as there are obstacles in the way that slows down the growth of more people using them in a dispensary, it is being encouraged. Recreational marijuana store owners want more people to use crytpos because it helps make accounting easier. Having everything done digitally gives you an edge on keeping accounting organized. This means you can pay your employee simply by scanning a QR code then transferring the money. The same goes with their vendors. The money left over for the store owner can be directly deposited into their bank account which could not have been done with cash. Cash raises questions which can easily get your bank account shut down.
Top 3 Promising Marijuana Cryptocurrencies
Potcoin, which uses the slogan “Banking for the Cannabis Industry”, was one of the first digital currencies to be released and it was released in 2014 on no other date than, April 20 (4/20). Created by three people who split tasks, Potcoin came in and became a quick leader in the industry. Most dispensaries use Potcoin besides the usual Bitcoin and Litecoin. Potcoin has had some interesting advertising methods and this what got their name out so well. They first sponsored Dennis Rodman on his trip to North Korea which got a lot of people to check them out. They then sponsored a few people to go streaking on the field of sports games. To get more people from the specific marijuana niche, Potcoin also did some advertising on Leafly, which is one of the biggest marijuana sites in existence.
Growers International is one of the most interesting cryptos in this space because it is trying to do so much. It is trying to help the legal growing aspect of cannabis. This is one of the most promising technologies out of all the 2000 altcoins available and if it delivers on its promise, it is very under appreciated. There is a total of 6 parts to this.
- The first thing it is trying to accomplish is have a seed to sale tracking method on the blockchain. This means you can hop on the blockchain and track where the specific marijuana came from, who grew it, how they grew it, what products they used and the cost involved while providing full transparency.
- The second part is a strain chain which is similar to what Leafly has done but this is more advanced. It wants to have a depository for people to register cannabis strains with the genomic data. This can help medical marijuana patients who need their medicine for a specific purpose.
- The third thing is a membership platform where members can share their knowledge and skills in what they know about growing marijuana.
- The 4th accomplishment would be the eCommerce platform they’re rolling out that will consist of 12,000 grow supply products.
- The 5th part is grow contracts which are exactly as it sounds. It will aid the seed to sale aspect and help growers and vendors have smart contracts which can detail the nutrients used in growing, the type of soil, labor costs, electricity costs and even ROI.
- The 6th part is their software which will consist of their wallet, conversions, measurements, ability to network with each other and much more.
The last and final cannabis crypto is actually about to enter its ICO phase but is very interesting. Imagine Facebook paid you to smoke weed. Well stop imagining because it’s pretty much here. Smoke Network is doing exactly that. They created a social media decentralized app which is made for stoners around. You can get paid for posting content but you can also curate other peoples content too. Steemit is another similar website however it is not for marijuana only but all types of cryptocurrency. The reason it is considered decentralized is because no one can control what goes on in the app and no one will be banned or kicked out. There ICO is set to start on 4/20/2018.