For a long time, the CBD industry has had to operate underground in what is typically known as the black market. However, with growing legalization—legalized in thirty-six states in the US and the UK, among other big economies—the sales are bolder and more accessible. It is becoming more common to find CBD products like CBD gummies, or the UK’s famous CBD vape pens UK, and creams on the shelves or in online stores.
Apart from the growth of the two industries, cryptocurrency entrepreneurs have been getting more interested in the CBD industry. Here are some of the reasons:
Legalization
Cryptocurrency and the CBD industry have always been on the wrong side of public opinion and legal framework, respectively. With the acceptance of cryptocurrency, which is recommended by celebrities and high-net-worth individuals, the market has taken another turn. CBD, on the other hand, is equally making more significant steps in big economies. For instance, as of June 2021, 36 states of the United States legalized medical marijuana. Eighteen states legalized marijuana for recreational use, and other states plan to find how to accommodate marijuana in their state laws. However, it is crucial to remember that marijuana is still deemed illegal by the Federal Government. Outside of the US, it has been de-classified in the UK, making the CBD market establish itself with a massive explosion. The growing legalization means cryptocurrency entrepreneurs can engage in this multi-billion dollar industry without raising concerns about dirty money or money laundering schemes.
Huge Profit Margins
One thing that brings the CBD industry and cryptocurrency together is their enormous profit margins. Cryptocurrency and cannabis are the last few years’ most prominent and quickly growing commodities. Bloomberg rated Crypto and Cannabis as the “Perfect Post-Crisis Bubbles.” According to Forbes, spending on legal cannabis worldwide is expected to hit $57 billion by 2027, with the North American Market being the largest buyer. That is considerable growth in a short while, and in some way, it reflects the same growth pattern that cryptocurrency—valued at about $267 billion by the Market Insiders—has taken.
Cryptocurrency entrepreneurs are profit-oriented risk-takers, making the erupting CBD industry an excellent investment for them. So, crypto entrepreneurs are attracted to the CBD industry because of its vast potential and seemingly exponential growth.
Growing Health Needs of Cryptocurrency Entrepreneurs and Concerns With Pharmaceuticals
When was the last time you met a cryptocurrency entrepreneur in the market advertising or tuning their sales pitch as most traders do? This is not a common sighting. Instead, the minds driving cryptocurrency and blockchain are busy somewhere in Silicon valley. Here is an exposure to a competitive and dynamic business environment where every minute counts. One of the costs of such is frequent mental and physical breakdown. To put it succinctly, cryptocurrency entrepreneurs need ways to keep themselves in good shape and have mental energy. However, these business moguls will not risk their lives with the scandal-stricken Big Pharma products. They are risk takers, but not with their health and mental peace.
CBD products, with their natural and organic touch, can push pharmaceuticals out of the market, especially for busy people who need faster, reliable solutions. The potential energy-boosting and relaxing properties of CBD products make them an ideal go for cryptocurrency entrepreneurs.
Marijuana Cryptocurrencies
Now, this one must have shocked you. You read it rightly. Due to Federal laws in the US, for instance, the banks cannot clear medical and recreational marijuana payments. This gap has led to the emergence of Cannabis-focused cryptocurrency. We will discuss at least four of them:
PotCoin (POT)
POT is one of the earliest cryptocurrencies for marijuana, launched in 2014 in Colorado, where its creators established a PotCoin ATM. PotCoin struggled to pick up until they sponsored former NBA star Dennis Rodman’s trip to North Korea in 2017. Rodman wore a PotCoin branded shirt, and the media did their part in putting it in the spotlight.
CannabisCoin (CANN)
CannabisCoin was developed in 2014 few months after PotCoin’s launch. CANN works in such a way as promising to convert cryptocurrency directly into marijuana at the exchange rate of 1 CannabisCoin to 1 gram of medication. CANN initially gained popularity but has failed to work for the investors.
DopeCoin (DOPE)
Adam Howell founded DopeCoin in 2014. While its specific market is not well known, it stands on the mission of “providing marijuana enthusiasts with a modern and secure way of doing business for the 21st century.”
HempCoin (THC)
Also launched in 2014, THC was designed for use by the farming industry and medical and recreational dispensaries, as reflected in its mission statement: “help facilitate secure transactional relationships between farmers, distributors, and consumers.” It has grown to be used in broader areas of agriculture besides weed.
Conclusion
Cryptocurrency entrepreneurs are increasingly becoming interested in the CBD industry. While this stems from the growing need and agitations for the legalization of medical marijuana, other exciting reasons make these two bubbling industries attract each other. This article has discussed the greatest of them.