The Intricate World of Marijuana CryptocurrenciesWhen banks refused to work with dispensaries, they had to take action. How are cryptocurrencies helping to keep the marijuana industry afloat?
Marijuana cryptocurrencies have emerged from the depths of the digital currency world to help people within the industry transact easily and securely. The world of finance is not always terribly nice to the marijuana industry because of federal regulations, so when various cryptocurrency companies saw a market, they immediately jumped on it. Now, thousands of people within the industry are relying on these cryptocurrencies so that they can legally transact without having to worry about any banks intervening and making it difficult to work with them. In the same way that cryptocurrencies focus on discretion when spending, these marijuana industry-specific options are here to help anyone within the industry spend on marijuana and comparable products without having to worry about losing their bank account.
What Is Marijuana Cryptocurrency?
Marijuana cryptocurrency is a specific form of cryptocurrency that is being used exclusively within the marijuana industry. This variation of cryptocurrency allows people to quickly, safely, and securely spend money within the industry without having to worry about banking limitations. In the same way that you might use a gift card, these cryptocurrencies allow you to spend cash on them so you can spend them on something within the marijuana industry later. Since the currency is entirely digital, you will maintain your stash within a digital “wallet” that can be accessed as a singular transaction or in the style of an ongoing account.
These cryptocurrencies, much like their traditional digital currency counterparts are designed to help people discretely make transactions within the marijuana industry without having to worry about being traced. This makes it possible to make purchases or sales without relying on directly linking your card to the actual institution. Marijuana cryptocurrencies can be purchased easily and then used as a cash equivalent with various companies.
The use of these currencies is focused around protecting all parties involved with the transaction. It makes it possible for people to embrace the legal marijuana industry without having to tie their name to it. This makes it possible for dispensaries to accept payments from major banking institutions using an indirect currency conversion. Rather than getting in trouble for breaching banking policies, these businesses can easily rely on marijuana cryptocurrencies to carry out their business. As an added benefit, cryptocurrencies are also secure for the person purchasing them, which can be beneficial in the event that a person does not want anyone to know that they are transacting within the industry.
Purchasing Marijuana Cryptocurrencies
For all of the chaos that has forced marijuana cryptocurrencies into business, it is surprisingly easy to purchase them. Any person who meets the minimum requirements and has a card available can quickly trade their traditional dollars for some flashy cryptocurrencies that can be used in various places. Some groups like PotCoin allow users to do this online, while others must be done within dispensaries instead. In fact, some of these companies even offer physical cards that can be loaded with this marijuana industry specific currency through the use of a simple app. The fact of the matter is that the process to get your hands on these digital tokens is surprisingly quick and easy. As soon as you purchase your new tokens, they are ready to spend at the location of your choosing.
Though every marijuana cryptocurrency option is a little bit different, the majority of them have an easy to use site or application that allows you to make your purchases. This generally involves setting up an account with minimal information, logging into the account, and then deciding how much of the cryptocurrency that you need. For people planning to make online purchases, it can be necessary to convert the item cost from the original currency to the cryptocurrency. Fortunately, there are a collection of tools to help you do this so you can make sure that you add the correct amount of currency to your wallet before making your purchase.
Many dispensaries are actively partnering with marijuana cryptocurrency companies to help their customers make easy payments in stores. Traditionally, dispensaries were dependent upon people either paying in cash or using an ATM at the facility. Marijuana cryptocurrencies have made it possible for people to pay using a card so that they are no longer responsible for hoping that they brought enough cash to cover the transaction. At the checkout, many dispensaries have tablets designed to help guide buyers through the cryptocurrency process. This involves swiping a card, entering a valid pin number, and then agreeing to purchase the marijuana cryptocurrency. The dispensary will preemptively convert the cost for you so you know how much will be charged, and as soon as you approve the transaction, the dispensary will be paid using the cryptocurrency, you will get your products, and the transaction is over.
What Makes Marijuana Cryptocurrency Any Different Than Bitcoin?
Many people who hear about these new cannabis cryptocurrencies are curious about what exactly separates it from something like Bitcoin. In reality, the only true differences between more popular cryptocurrencies and the new variety of marijuana-focused tokens is the branding and the fact that these places are specifically aiming to work with people in the cannabis industry. While every form of cryptocurrency is slightly different, at the end of the day, the people creating these tokens are doing what any other cryptocurrency creator does. The difference is that these ones have a tendency to have a name that aligns with the cannabis industry and cannabis companies are agreeing to transact in it. In the same way that only certain places take Bitcoin, marijuana cryptocurrency tends to only be accepted within the weed industry.
Popular Marijuana Cryptocurrency Options
Since the marijuana industry is absolutely booming, it should come as no surprise that there are now multiple versions of marijuana cryptocurrency that all exist independently of one another. These digital tokens all have the same goal, but each one operates slightly differently. Every type of coin is accepted in different places and operates in different ways. The type of cryptocurrency will actually determine who accepts it and what portions of the industry it touches. Every single one has different aims and is known for handling different types of transactions.
- CannabisCoin— This trendsetting form of digital currency is one of the many marijuana tokens that can be used for medical marijuana purchases. They offer digital wallets across a variety of products including Windows, Apple, and more.
- CannaCoin— Cannacoins are used for a wide variety of purchases within the industry including flower, smoking elements, and grow products. They act as a one stop shop for spending across the marijuana industry and are generally well regarded online.
- PotCoin— As far as currencies go, few are this aimed at community outreach. This variation of cryptocurrency aims to be the go to token for all of your cannabis needs. Whether you’re looking to spend in a dispensary or you’re looking for other goods or services, this coin is ready for you. PotCoin is focused on helping the industry with stable income so that it can blossom successfully.
- DopeCoin— This strangely empowered form of cryptocurrency does not have anyone running or regulating it. Instead, it is dependent upon interactions between the individuals investing in it. For most people involved in its use, this is part of the charm. For now, it is setting its sights on finding new ways to help the marijuana industry.
- HempCoin— With this type of cannabis currency, you can easily make purchases at various dispensaries. It is made to be used for purchases in the medical and recreational sides of the business and also places a focus on helping dispensaries with all of their costs, sales and otherwise.
Why Do We Need Marijuana Cryptocurrencies?
As fun as it would be if marijuana cryptocurrencies emerged just as a novelty, the reality is that this form of cryptocurrency emerged because of a very real need. Due to federal regulations, the majority of banks and financial institutions are incredibly weary about going anywhere near the cannabis industry. Despite the fact that marijuana is slowly being legalized across the United States, it is still considered federally illegal, which puts any financial institution at risk. Though it has yet to happen with any degree of significance, federally backed financial institutions could be legally held accountable for working with the weed industry in any capacity.
It might not sound like the end of the world that banks don’t want to work with the marijuana industry, but the reality is much more extreme. Financial institutions are involved in every form of business. These institutions making it impossible to work with them can deprive companies of their ability to sell online, accept debit or credit cards in store, and even get business loans. The fact that the marijuana industry is blossoming at all without the use of many banks is a testament to its overall value, but thankfully the digital world comes with other options.
While some financial institutions are venturing into the marijuana industry rather hesitantly, an obvious solution came with cryptocurrencies. In the same way that people can use Bitcoins to make untraceable purchases, marijuana cryptocurrencies allow these businesses to transact in a more traditional capacity using them instead of actual dollars. Instead of forcing dispensaries and other businesses within the weed industry to exclusively transact in cash or have accounts constantly at risk of being shut down, cryptocurrencies allow these businesses to exchange money easily, which helps them to focus on improving the industry. Being unable to work with banks can drastically hinder the growth of an industry, but with the introduction of various new forms of marijuana themed digital tokens, the weed industry can breathe a sigh of relief and keep helping the brave people carrying it forward get paid.
The Benefits of Marijuana Cryptocurrencies For Buyers and Sellers
While it has taken some time for the general public to accept that cryptocurrencies are legitimately going to stick around, the marijuana industry shows the benefits of these digital tokens better than anything else in the public eye. For companies operating within the marijuana industry, they can safely and easily do business in a more traditional way which helps with bookkeeping, employee pay, and safely managing transactions between the company, their customers, and other industry professionals.
Though marijuana is becoming legalized in many places, dispensaries still can’t accept traditional debit or credit transactions. For people looking to buy weed, this is a horrible inconvenience. In the modern world, very few people carry cash on them, much less enough cash for a proper trip to the dispensary. This is what makes being able to easily purchase cryptocurrencies on your card in a dispensary such a step up from having to try to guess how much you will spend or give yourself a specific budget that also leaves enough over for an appropriate tip for your favorite budtenders. Even though it takes a few extra steps to purchase the cryptocurrency, it is still better than having to carry all that cash on you.
How These Cryptocurrencies Impact The Marijuana Industry
The impacts that marijuana cryptocurrencies have had on the industry are spread across all levels. For small business owners who want to sell CBD products online, these digital tokens offer them a chance to truly get off the ground with their business in the event that they cannot afford or do not want a brick and mortar store that can more easily accept cash. PotCoin worked with dispensaries to bring over 800 crypto-ATMs to stores to make purchasing easier. For buyers, it means being able to easily charge the exact amount of their order instead of having to withdraw extra from an ATM.
The agriculture side of the industry is using these tokens to facilitate the sale of flowers and oils from farms to dispensaries. In so many ways, these cryptocurrencies are helping the marijuana industry to flourish in the same way that other industries are able to with the help of financial institutions. Pot coin alone is worth a staggering ten million, showing just how much money is being added to the marijuana industry. In terms of overall effects, these digital coins are making it possible for the industry to keep growing to reach its potential. As the weed industry continues to expand, there will most likely be a higher demand for these coins.
Cryptocurrencies are a fairly recent concept. While some might affiliate them with shady dealings in the dark web, their use as an easy to obtain and exchange form of currency is being proven in a legal setting that shows just how real of a product these digital tokens are and the power that they can hold. The use of these various kinds of internet money show just how much money can actually be packed into this booming new digital marketplace. For marijuana professionals and enthusiasts, the fact that cryptocurrency options stood up when financial institutions let the industry down is considered to be a major win for the industry. With the help of this unlikely form of spendable tokens, it seems likely that the marijuana industry will continue to transact with ease as it continues to grow in size.