Cannabis cryptocurrencies are speculative investments right now, which is why we don’t talk about them too often. Instead, we’re focusing on what will really transform the cannabis industry and make you money along the way.
Some people believe if you throw cryptocurrencies and cannabis into a blender, you’ll end up with a huge pile of money. There’s a potential trillion dollars to be had with cannabis, and people used to think they would be able to buy Lamborghinis after owning Bitcoin for a month.
But between crypto exchanges getting hacked, the price of Bitcoin tanking from $20,000 to $3,000, and a crypto exchange operator dying and leaving $140 million of customer’s funds stuck on a computer, it’s been a volatile ride for crypto investors, to say the least.
You can’t really put a face to the name with some of these virtual currency investments, which is why I like to operate within established frameworks. I’m talking about stock exchanges that are regulated, transparent, and provide you with an easy way to cash out when you hit it big with cannabis stocks.
So I get why investors were initially excited about mashing these two together, but the enthusiasm is misguided.
The stated purpose of crypto coins like “POT,” “DOPE,” and “CANN” is for dispensaries to accept them as payments, which would cut down on the amount of cash a business receives in a day.
With less cash around, it could deter robberies, and initial coin offerings (ICOs) give startups a way to raise funds outside of traditional financing.
But here’s the thing – if dispensaries are actively accepting marijuana virtual currencies, that information isn’t easy to find. When I look at the websites for these crypto companies behind the coins, there is not a list available of vendors who accept them.
I would make that front and center if I were running things, showing off my client list and providing more legitimacy to what I was trying to accomplish.
Instead, cannabis cryptos are being used as speculative investments. On December 4, 2018, the price of POT reached $0.42 per coin. In February 2019, the price is about a penny.
If you can’t use them to buy marijuana, they serve no function, other than to gamble on.
And cannabis crypto coins are going to stay that way: a speculative investment.
Crypto is not the game changer for the cannabis industry that some are making it out to be, and it’s why we aren’t “playing” this part of the cannabis market right now.
If I see any blockchain or cryptocurrency marijuana investment worth owning, you will be the first to know. In fact, we have someone on the Institute’s staff with extensive experience in cryptocurrencies, so we’ll have an edge over others if the right opportunity arises.
But instead of cryptocurrencies making waves in cannabis, it’s going to be a surprising source that provides the biggest benefits to cannabis firms – and your cannabis portfolio…
I Want Visa In On the Cannabis Game
Using CannabisCoin to buy marijuana doesn’t get me excited.
What would is a customer being able to pull out a Visa credit card and pay for cannabis, but major credit card companies have adopted a similar approach to the cannabis industry as banks. Marijuana is federally illegal, so credit card companies don’t want to run the risk of facilitating an illicit transaction.
And even if they wanted to serve as an intermediary between you, a dispensary, and your bank, the bank would never allow it.
Still, credit cards and debit card payments will be a major win for dispensaries, and we’re going to see them used to buy cannabis in the U.S. sooner than later.
We know this because in some states some credit unions and smaller banks have found ways around the credit card companies’ rules, and limited purchases with a debit card are possible. Where this happens, business booms.
We’re just beginning to scratch the surface of marijuana’s incredible potential. Right now, we’re barreling head first toward an explosion of marijuana opportunities for smart investors who go all in on this lucrative industry. In fact, if you move on these three opportunities today, they could make you a fortune – practically overnight. Just click here to take a closer look.
Unlike crypto, there’s no learning curve with swiping a card, and everyone has one. As of 2015, there were 636 million Visa Inc. (NYSE: V), Mastercard Inc. (NYSE: MA), American Express Co. (NYSE: AXP), and Discover Financial Services (NYSE: DFS) cards in the United States.
And it’s part of a story arc in the U.S. that I’m watching closely.
We are now in the “Land Rush,” stage of cannabis investing, where companies are trying to grab their slice of the marijuana market.
Once an opportunity to be an early mover is gone, it’s gone forever.
After that, we will enter a “Settlement,” stage.
This is where things get really interesting – and profitable for cannabis investors.
We could see a bill that makes it clear that banks aren’t violating any regulations when they work with marijuana firms that follow state laws. That would also open up the flood gates for credit and debit purchases.
In fact, congressional Democrats will reportedly hold a hearing next week on marijuana businesses’ difficulties accessing banks.
I’m also watching for breaking developments involving the STATES Act, which would allow cannabis firms to operate in legalized states without fear of federal interference.
The Cole Memo was general guidance on how federal agents should handle marijuana enforcement, but the STATES Act will move past just guidance and take it a step further.
Or we could even see the Big Event – the descheduling of marijuana as a Schedule I drug under the Controlled Substances Act and the full U.S. legalization of all cannabis use.
Something big is in the works. I can’t say exactly what it will be or give an exact date of when it will happen, but we could see a major change in 2019.
And when something does happen, there will be an instant increase in profitability.
In this stage, using your credit card to buy cannabis will become just as common as using it to buy gas and a coffee.
That’s when we know cannabis has fully entered the mainstream.
This is an exciting time for cannabis investors, and I’d like to thank you for being a part of the National Institute for Cannabis Investors,
Executive Director, National Institute for Cannabis Investors
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5 responses to “Revealed: Why Buying Cannabis Cryptocurrencies Is Pure Gambling”
February 07 2019