So I’m not going to pretend that cryptocurrency is something I’ve been involved with or really understand. What I really understand is that it’s pretend internet money, worth it or nothing, and it’s constantly changing. Obviously, I’ve been told a lot about cryptocurrencies and a lot of people have explained it to me, and always without my request. Despite a lot of research, I found that marijuana and cryptocurrencies are closely related, and there are even marijuana-specific cryptocurrencies. Not only are marijuana and cryptocurrencies linked, but the marijuana community seems to be truly dependent on cryptocurrencies in many ways. So, ladies and gentlemen, let’s get into the world of cannabis cryptocurrency first.

What is cryptocurrency?

For someone like me who is new to this form of internet money, here is a basic breakdown of what cryptocurrency is and how it works. Therefore, cryptocurrencies are almost any form of internet money used for secure transactions. This currency is not as regulated as normal currency, nor does it depend on banks. It acts as a digital entry in an online database used to record and describe transactions. It uses encryption to verify transactions, i.e. encryption, and it should be more secure than bank transfers or other online payment methods. Many people use it not to buy items, but to make profits like the stock market.

How does it work?

It took me a minute for this to get into my brain because I’m just not financially minded, but let’s get started. So cryptocurrencies work through this thing called a blockchain, which is a record of transactions available to the public. People mine cryptocurrencies, which means solving math problems to create coins. If you’re not too interested in math, you can also buy coins. After acquiring the currency, you don’t actually own any physical objects, but you have the key to transfer the currency without a third party. The value of these coins does go up and down like stocks do. So many people store them and wait for them to appreciate before selling or cashing out.

Why is encryption good for weeds?

Okay, that’s a super basic introduction to what cryptocurrencies are and how they work, if you want to learn more, there’s a ton of information on this novelty called the internet. So let’s move on to why cryptocurrencies are so useful for the cannabis industry. We are fighting for marijuana legalization in many parts of the world. It’s been successful in some places, but it’s still an illegal substance in most parts of the world. In the U.S., many medicinal and recreational marijuana distribution centers are banned from using banks at the federal level, even though they are legal in the state. The problem is that the only other option is cash. As a result, pharmacies across the United States have experienced a spate of violent robberies. Storing large amounts of physical currency is not a safe industry. Cryptocurrencies are an excellent option for cannabis-based businesses to ensure they can still trade securely while stupid laws are addressed.

Outside the US, cryptocurrencies are a great way to do business online to buy seeds and other items that can cause problems if they go through a third party.

Crypto has become so important to the cannabis industry that there are many cannabis-specific cryptocurrencies available.

Cannabis Coin (CANN)

This coin came out in 2014 and was one of the first coins. This currency actually promises to turn coins straight into weed. This is often used for medicinal weed, and the general idea is that one gram of medicinal cannabis is one coin. With this coin, the current value in circulation is $77 million, out of a total of $91.8 million.

Cannabis Coin (THC)

This coin also came out in 2014, but this coin was designed for a very different purpose. It is not designed for personal weed buying use, but for farming. It is also designed for recreational and medicinal pharmacies. So it’s a broader coin designed to facilitate larger transactions between farmers, pharmacies and consumers. It is also used in other agriculture, not just the hemp trade.

Pot Coin (POT)

The coin appeared in early 2014, clearly a big year for online cannabis trading. This is definitely one of the first, if not the first. It was created for the exact reasons we discussed earlier, to allow safe legal marijuana trade. It is intended to be conducted between two parties on a smaller scale and is essentially just money used to buy cannabis, just like CannabisCoin. Not surprisingly, it came at the time of legalization in Colorado. Creators see a void in the market that desperately needs to be filled. The coolest part of this is the ATM they have installed at the Colorado dispensary just for PotCoin. Interestingly, it didn’t catch on until Dennis Rodman put on a shirt with their logo on it. The company’s stock took a day to double, and it’s been rising from there. Another lovely aspect is that the currency is capped at 420 million coins.

The company announced that they are adding new aspects to the currency, including faster network synchronization and wallet upgrades. This definitely seems to be the largest and most versatile cannabis cryptocurrency on the market. Now we have the PotCoin Foundation, which aims to fund development programs, education, and various initiatives and projects. Be sure to check out their website for more information.

Written by Tasha Porritt

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photographer Kanchanara exist no splash