Modified on: 13/07/2023
INVESTING IN CANNABIS: THE BEST MARIJUANA CRYPTOCURRENCIES
Advances in cryptography (i.e., applications that make a message understandable only to those authorized to read it) and the evolution of the Internet have brought about a radical change in the economic and financial sector, especially in the way goods and services are exchanged.
In this climate of change, cannabis has also carved out its own space, and today many companies are operating in the marijuana sector that uses cryptocurrencies for their transactions.
Before we find out what essential Coins are regarding cannabis, let’s shed some light on Cryptocurrencies.
What is a Cryptocurrency?
The term ‘cryptocurrency‘ refers to a type of currency that is ‘hidden‘ and therefore only usable by knowing a specific type of computer code.
The best-known cryptocurrency is Bitcoin! It is a bidirectional virtual currency, as it can be easily converted to the main official currencies and vice versa.
Cryptocurrencies do not exist in physical form but are only generated and exchanged electronically; they can be classified into ‘closed’, ‘one-way’ and ‘two-way’ virtual currencies based on whether they can be exchanged for legal tender.
How much is a cryptocurrency worth?
It is essential to point out that the value of cryptocurrency is independent of the performance of traditional markets, and the quantity of these virtual currencies is not infinite, reminiscent of non-renewable commodities such as gold and other precious metals.
The cryptocurrency market is highly unstable, seeing its value go down and up by as much as 20-30% in a matter of days. It scares traditional investors, who are used to operating in less shaky situations, to no small extent, even though, according to many experts, the value of the leading virtual currencies is set to increase in the medium/long term.
In 2009, the year of its birth, Bitcoin was worth $0.003 compared to other currencies. But the rise of its supporters has allowed this virtual currency to go through waves of rises, reaching a value of between $100 and $1,200 in 2016.
However, the turning point was 2017, when Bitcoin reached a value of almost $20,000, which forced the financial community to shed light on this phenomenon that seemed unstoppable.
It seemed because the following year, there was a collapse in investment caused by the threats of regulation that came from the main countries active in the new digital currency market, namely China, India, and South Korea.
Best Marijuana Cryptocurrencies
There is an increasing number of US states that are legalizing marijuana (for some uses). Despite this, the lack of regulation at the federal level has made banks quite reluctant to provide their services to companies engaged in this field.
It is why they have found cryptocurrencies to be a viable alternative, to the point where some virtual currencies have even been explicitly created for Marijuana transactions.
Below, we will look at the top 5 Cryptocurrencies on Cannabis.
1. PotCoin (POT)
Born in 2014, it was the first virtual currency in the Marijuana industry.
It was created to solve the banking problems of those who wanted to make transactions involving CBD Cannabis; an ATM — the PotCoin ATM — was even installed at a Marijuana dispensary in Colorado (USA).
Its current market capitalization is close to $31 million, and to date, it ranks 263rd in the cryptocurrency market capitalization table.
PotCoin is available in limited quantities (only 420 million cryptocurrencies), with almost 219 million in circulation.
2. CannabisCoin (CANN)
CannabisCoin was created a few months after PotCoin, aimed, like POT, to facilitate transactions for medical marijuana dispensaries.
While it initially gained much popularity, it later failed to provide sufficient returns for investors.
CannabisCoin aims to convert cryptocurrency directly into marijuana; under the name “CANN”, there is, in fact, a line of medicines and strains of marijuana processed to be traded “at the rate” of 1 CannabisCoin = 1 gram of medicine.
The total supply of this cryptocurrency is set at 91.8 million, with over 77 million currently in circulation.
3. DopeCoin (DOPE)
Another one born in 2014 is the cryptocurrency DopeCoin; not much is known about the markets this currency serves. Its purpose is to “provide Marijuana enthusiasts with a modern and secure way to do business in the 21st century,” stated on its website.
Dope’s supply is limited to 200 million, with around 117 million currently in circulation.
4. HempCoin (THC)
HempCoin was also created in 2014, but its focus is not on those who intend to purchase marijuana.
This cryptocurrency focuses on Cannabis farmers, and its website states that this currency can be used “to facilitate transactions between Marijuana growers and retail shops”.
5. CannaCoin (CCN)
The latest cryptocurrency developed in 2014: Cannacoin. As described by its founders, it consists of “a group of cannabis enthusiasts working towards the future development of cryptocurrency applications related to cannabis production, seeds, extracts, glass blowing equipment, vape and dab station manufacturing, and more”.
The world of cannabis is evolving, gaining more and more ground in the economic and financial spheres through virtual currencies.