The popularity of cryptocurrencies, particularly of Bitcoin, has skyrocketed in recent years for good reasons. There is no denying the fact that many of the alternative currencies hold big promise for the future and have the potential to shake up the financial markets across the globe. Another steadily growing industry, cannabis has also started benefiting because of the widespread adoption of cryptocurrencies.
Well, known cannabis seed bank i49 sums up the relationship between cryptocurrencies and cannabis as below.
Understanding Cryptocurrencies:
The first decentralized cryptocurrency to hit the net, Bitcoin was introduced in 2009 by the pseudonymous Satoshi Nakamoto. With this launch, the entire digital and financial world entered a new era that promised financial freedom as well as decentralization.
Digital currency may be defined as one that is not governed by any central authority and is not looked over by any central bank, financial institution, or IMF. The advent of Bitcoin allowed consumers the freedom to purchase goods anonymously. Cryptocurrencies have also been extremely useful in underbanked regions. Many consumers have now started using bitcoin and other cryptocurrencies because they work beyond international boundaries.
Bitcoin hit the headlines a couple of years ago when its value reached a record high. People that have never heard of bitcoin were now scrambling to purchase it. Individuals looking to gain quickly in this circumstance lost out. However, individuals with large amounts of BTC became millionaires within just a few days.
Early Popularity of Bitcoin:
In its early days, Bitcoin gained immense popularity on the dark web. It was used extensively on sites like Silk Road to purchase almost anything without being traced. Launched by Ross William Ulbricht, Silk Road created an avenue for individuals to discreetly obtain books, clothing, writing services, art, drugs, and almost anything else. The popularity of Silk Road resulted in the creation of competitor sites offering harmful services such as contract killings, weapons sales, etc. Very soon, the notoriety of Silk Road and other similar sites were part of mainstream knowledge. This boosted the adoption of Bitcoin as a medium for anonymous transactions. In October 2013, Silk Road came to an end as Ulbricht was arrested by the FBI and was found guilty of the non-violent charges laid against him.
Bitcoin and Cannabis:
Understanding the relationship between cannabis and cryptocurrencies demands a clear understanding of the sites such as Silk Road. There are many cannabis users that have used and continue to use bitcoin or other cryptocurrencies for purchasing cannabis. Even after the recent legalization of cannabis in many states, most of the centralized banks are still hesitant to offer their banking services to cannabis dispensaries and farmers.
Without any banking support, many dispensaries have no option but to store loads of cash in locations that are not always safe. Inevitably, this makes them soft targets for robberies. With the help of Bitcoin, many of these dispensaries have already started eliminating their need for cash. All their funds can be stored in a secure wallet that can’t be stolen without the keys that are much easier to store compared to physical currency notes.
In addition to Bitcoin, there are several other cryptocurrencies that are purely focused on the cannabis industry. This includes currencies such as CANN, PRG, BTC, THC, and POT. All these cryptocurrencies were created with the goal of protecting each of the industry stakeholders and creating an earning opportunity for them without any reliance on banks or standard currencies. The future of the industry may experience the emergence of more cannabis-focused coins.
Final Thoughts:
Cannabis and crypto are both extremely young as industries and have struggled so far to find more adoption in the mainstream. Both these highly promising industries may benefit a great deal by forming a tighter partnership that will boost both markets.
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