Aside from attracting high volumes of bold new investors, the cannabis and cryptocurrency industries in the U.S. also share some major issues. Marijuana focused cryptocurrencies have taken on a life of their own with marijuana is still illegal at the federal level, which poses a variety of challenges for (Related: Pot Industry Turns to Bitcoin as Banks Snub Them). Why the Cannabis Industry Is Interested in Cryptocurrency Offerings In reality, a big concern for CannaSOS and its users appears to be the.
Industry Cryptocurrency Cannabis for Concerns the
A representative from High Times clarified that a third-party will convert Bitcoin to fiat currency for the company to avoid holding any investments as cryptocurrency and any controversy with the SEC. Advertising cannabis businesses and products is prohibited in many instances due to stringent federal regulations.
Despite 29 states having already legalized medical marijuana, there are few educational resources or services that provide information about the benefits and potential side effects of particular marijuana strains. The history of production or origin of strains for sale is even less clear to consumers. CannaSOS integrates blockchain tech into its platform to connect buyers, sellers and advertisers in a transparent and accountable network.
CannaSOS provides a centralized online meeting place for cannabis enthusiasts to engage with other users, find and share cannabis-related information, search and review particular strains, and locate friendly businesses. CHEX is described as a service for the wholesale exchange of cannabis commodity in B2B transactions, or for business-to-business customers. The blockchain firm Paragon is addressing the demand for more transparency and standardization in cannabis supply chains by creating a crypto token built on smart contracts to systematize the traditionally fragmented cannabis industry.
Additionally, Paragon's business model accounts for the need for physical workspaces for cannabis businesses and entrepreneurs and offers co-workspace locations that members can pay for exclusively with cryptocurrency - one of the first all-crypto real estate offerings. Logistics and supply chain management are the strongest cases for blockchain adoption.
The efforts to add transparency and accountability to the supply chain management of cannabis businesses yields positive effects to the social stigma surrounding marijuana use. Medical marijuana dispensaries are successfully rebranding the drug by providing detailed information about the medicinal properties of particular strains, but communities moving to legalize pot still see pushback over concern that the legal cannabis will inevitably fall into the wrong hands.
The growing cannabis industry in the U. Cannabis coins Cannabis businesses in the U. An unfinished ICO Another major issue facing pot businesses are the high costs of opening a cannabis dispensary, which are much higher than those of a typical small business. A match made in heaven Logistics and supply chain management are the strongest cases for blockchain adoption.
Blockchain News marijuana Cannabis High Times. It also keeps waging a legal war because of its anti-authoritarian nature. Satoshi Nakatomo, the founder of Bitcoin explained that cryptocurrency uses blockchain technology. Blockchain contains all the information for verification and circumvents the need for a financial third-party like banks and government agencies. The use of blockchain then raises the legal concern of whether cryptocurrencies pass the Howey test to be qualified as securities or not.
All the necessary information are also stored across the block chain, making it a very useful alternative to the usual old-fashioned bank account. Because there are no third-party involvements, untraceable purchases of illegal products like drugs and other contrabands could be made.
Silk Road black market is a typical example of the first major adoption of the use of Bitcoins. Lots of illegal and untraceable purchases were made. Cryptocurrency industry and Cannabis industry might be a difficult association at first but they will eventually be of profitable to each other. Blockchain would provide the much required platform for making impeccable transactions for cannabis.
Cannabis would in turn bring a supply of a teeming group ready to use the cryptocurrency for transactions, thereby validating it. Since , several projects marrying the crypt and cannabis industries together have been looked into.
Though none of them has been widely adopted by the public yet, they are all birthed with the same mindset of using the cryptocurrency platform to give cannabis dealers a reliable means of exchange. At the moment, crypto and cannabis are not there yet when it comes to infrastructure and adoption.
Many more countries are yet to declare a legal status across all their states for cannabis and the United States Securities and Exchange has even detached itself from all forms cryptocurrency transactions. But as the two industries grow; Cannabis providing the customer base and cryptocurrencies making transactions continually transparent, there will be widespread adoption leading to more dependence on the synergy between the two industries.
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Marijuana and Cryptocurrency
Both the cryptocurrency and cannabis industries are still largely Experts claim the market will grow so big that financial concerns will. The cannabis industry doesn't have widespread access to banks, and conducting business with only cash has its risks. Many dispensary. Cryptocurrency solves many of the cannabis industry's problems and is gradually replacing cash as its medium of exchange. However, the use.