As the cannabis industry continues to grow more popular, so do cryptocurrencies that support the marijuana space overall. Because most cannabis dispensaries aren’t allowed access to banking services and because of the penalties that occur when dispensaries pay off their taxes with cash, the industry has turned to digital currencies as a means to work around these issues. Marijuana cryptocurrencies are the next big thing to help the industry expand and legalize quicker.
What Are Cryptocurrencies?
Cryptocurrencies are digital currencies that are used as a replacement for traditional currencies. Whereas one might purchase a coffee or a new lamp with a debit card from their bank account, someone using cryptocurrency can purchase the same thing with a digital currency much faster, cheaper, and in their possession at all times.
How Are They Used?
Cryptocurrencies are a very versatile piece of technology. While they are most often invested in as assets because of their frequent price fluctuations, cryptocurrencies can be used to do anything from funding a company to buying a pizza. They have been around for almost a decade so passive income with Bitcoin is even possible. In this case, we are discussing cryptocurrencies and how they can be used to expand the cannabis industry.
The Problem the Marijuana Industry Faces
As I stated earlier in the introduction, the cannabis industry faces some serious issues when it comes to cash. The nature of their business causes banks to turn them away when it comes to simple services that most businesses need to survive. Because of this, they are forced to accept cash payments, pay employees and expenses all in cash. It also gives store owners the ability to lie about their profit to pay less taxes.
How Cannabis Cryptos Are Going to Solve It
With cryptocurrency, marijuana dispensaries can avoid all this by using a digital payment alternative that has lower fees and is simpler to store and handle. This helps store owners be more secure with their money as stealing digital coins is much harder than stealing cash. Everything also goes through the public ledger which is called the blockchain. Everything is public and transparent except the purchaser’s name. You can check when or how much a specific transaction was without revealing who was involved in the transaction. You can still use ATMs for Bitcoins to pull out cash or turn your fiat into cryptos.
What Is PotCoin?
PotCoin is a marijuana cryptocurrency that was launched at the beginning of 2014 to meet the growing needs of the cannabis movement. The project essentially began as a fork of another major altcoin, Litecoin. They were one of the first cryptocurrencies to emerge for this use and continue to remain one of the most popular.
The team of PotCoin consists of 4 individuals: CEO Joel Yaffe, co-founder Nick Iversen, CIO Russ Thomas, and sales director Alec Rochford. The main goals of the team include eradicating the negative image that people have of the cannabis industry, eliminating high transaction fees, and strengthen the marijuana community. This can be done by being the main payment processor for the cannabis industry which is said to be over $30 billion by 2021.
PotCoin began on a Proof of Work system but is now running on a Proof of Stake system. There are currently 219,351,865 coins in circulation and the total supply is 420,000,000 coins.
What Is Growers International?
Whereas PotCoin aims to facilitate the purchase of cannabis with cryptocurrency, Growers International is a crypto that was released in mid-2017 for legal cannabis growers. The Growers International platform has a variety of different products that a marijuana producer needs such as lighting tools.
There is little to no information about the team who created Growers International and the only thing that we do know is that the team consists of a “group of growers from Southern California.” The goal of the team is to create an open network of enthusiastic cannabis growers and users.
Growers International is based on a Proof of Stake system that provides an annual interest rate of 5 percent. At the time of writing, the circulating supply of Growers International is 1,175,375 coins. There is currently no information available about the total supply of coins.
What Is DopeCoin?
DopeCoin, now known as DopeCoin Gold, was released shortly after PotCoin in 2014 as another payment alternative for marijuana vendors. Issues with competition, the blockchain, and block spacing forced the developers to rebrand and release this new version. However, the coin and its mission are not dissimilar from its original version.
The team behind DopeCoin Gold consists of founder Adam Howell, the community leader known as “dopecoindude,” and the hacker known as “AnotherLateMiner.” The main goal of the DopeCoin Gold team is to create a universal payment system for marijuana users. However, they have put another feature on their wallet software that differentiates them from other coins: an advertisement system that will allow marijuana producers to reach out directly to audiences.
The DopeCoin Gold utilizes a Proof of Stake system that returns 5 percent annually and they have changed their block time to 60 seconds. There are currently 116,845,228 coins in circulation and there is a total supply 200,000,000. While the network is currently operating on its third version, they are expected to upgrade to version four on February 15th of this year. All of those who currently hold DopeCoin from the third version will need to exchange these coins before the 15th in order to keep their investments.