Both the cannabis and cryptocurrency industries are experiencing phenomenal growth. In early 2018, huge legislative strides increased the projection for cannabis sales this year to the tune of $10 billion. Although February and March were filled with uncertainty with cryptocurrencies fluctuating, the market now remains stable at $350 billion.
In states where the plant is legal, the most significant problem facing cannabis companies is that they cannot open bank accounts. That’s because cannabis remains illegal at the Federal level, and since banks are regulated by the Federal government, they cannot open accounts for cannabis clients. The result is that cannabis companies (from dispensaries to distributors and growers), must deal predominantly in cash. It’s not uncommon for operators of licensed cannabis businesses to carry hundreds of thousands of dollars in cash. I had one operator tell me that it, “scared the shit out of [him].”
Until cannabis is legalized by the Federal government, cannabis companies will have to find other solutions to their cash problem. Many have turned to cryptocurrencies as a way to take physical cash out of their business.
Advantages of Using a Cryptocurrency to Purchase Cannabis
Several technology companies are collaborating to invent a uniform method of payment for dispensaries and consumers. Cannabis-oriented cryptocurrencies offer a safe alternative to cash for cannabis businesses and customers. In fact, consumers can use virtual wallets and cryptocurrency to make their purchases at marijuana dispensaries.
Top 5 Crypto Cannabis Coins of 2018
Below are a list of the most prominent coins that are targeted specifically at the cannabis industry.
PotCoin was launched in January 2014. How can we forget the infamous PotCoin photo featuring NBA star Dennis Rodman wearing a PotCoin.com t-shirt in a North Korean airport. Rodman’s appearance resulted in a 76% increase in PotCoin in one day.
CannabisCoin was created shortly after PotCoin. The currency was expressly created to make transactions easier for medical marijuana dispensaries. In January, 2018, CANN’s market cap was $22.8 million. One CannabisCoin was worth $0.296. However, last year its market cap was just over $175,000 and one CANN was worth $0.002. CannabisCoin growth has been beyond explosive.
Paragon Coin (PRG)
Paragon Coin is backed by tremendous star power. The company was founded by tech entrepreneur and former Miss Iowa, Jessica Versteeg. Versteeg has since recruited popular rapper The Game.
The introductory price of PRG was initially set at $0.75, but the currency saw an almost immediate spike and latecomers had to shell out $1.55 for a single coin. Versteeg expected the ICO to bring well over $50 million.
HempCoin is projected to be the #1 crypto cannabis coin in 2018. HempCoin offers a niche market placement like no other. The currency is strictly for the farming industry and medical/recreational dispensaries.
CannaCoin launched in early March 2014. CannaCoin is similar to Bitcoin. It relies on peer-to-peer technology and operates on a de-centralized blockchain platform. Currently, there is a circulating supply of 4.7 million coins. The company has yet to announce its strategic direction for 2018. This places CannaCoin in last place based on the forward activity of other Crypto Cannabis Coins described.
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