Positive gains have been recorded across three of the most popular cannabis-related coins in the run-up to and over the 4/20 (20 April) period.
Ideals behind cannabis coins
The cannabis coins, although often not taken seriously, are looking to address some significant issues within this niche market.
Recreational and medicinal cannabis use is growing, with the legal adoption ranging across a number of US states, although it is currently deemed illegal by federal law. This has led to banks generally not wanting to provide their services to these companies.
THC, POT, CANN, and other cannabis currencies are looking to provide an alternative banking and payment system for dispensaries and the cannabis community.
The combined market cap of USD 58,451,099 (at time of writing) for the above currencies suggests that the community views a future for what these coins are looking to achieve.
PotCoin (POT) is one of the more established coins which has been running since January 2014 with its iconic 420 million coins in circulation. PotCoin has gone as far as installing POT ATMs at cannabis dispensaries in Colorado and is now in over 35 countries with 800 ATMs globally with the idea of continued expansion.
CannabisCoin has the idea to make their cryptocurrency directly relative to cannabis in terms of value. Their specific strains are grown with the concept of the exchange rate being 1 gram to 1 CannabisCoin.
HempCoin has taken a different approach with the idea of focusing its use to be among the agricultural industry and medical or recreational dispensaries. The coin looks to facilitate the purchasing tools and equipment.
Recent market overview
Total spending, in the cannabis industry, could increase to an excess of USD 21 billion in the US by 2021. This estimate is inclusive of revenue and transactions within the industry for equipment, shipping, and payroll. This is a rapidly growing market which could yield global adoption, with the possibility for cannabis-related coins and blockchain to be the systems the industry is built on.
THC, POT, CANN as with most other currencies, appeared to bottom out around the end of March. Although slow to recover, the well known 4/20 holiday spurred some positive gains. Although coins are currently at the mercy of the crypto world as we start to see currencies and technologies affiliate themselves with real-world products and services, stability and a higher worth maybe achieved.
HempCoin announced its masternode development promoting privacy, budgeting and governance capabilities on 4/20, with its continuing development to change the financial world of cannabis.
Meeting shady individuals on a street corner will be a thing of the past. The future could bring a regulated, quality-controlled market for medicines and equipment. Blockchain could be used to track medicine and specialist equipment straight from the source, providing those who are ill with a certified product.