Cannabis finally saw recreational legalization in 2014, with Colorado leading the charge. Since then, we’ve had nine more U.S. states follow, not to mention the 29 states that have legalized medicinal usage.
According to a study by NewFrontierData, the cannabis industry is projected only to grow further. The study also expects recreational marijuana profits to grow 16% annually by 2025, resulting in an estimated $10.8 billion per year. However, marijuana isn’t the only growing industry in the United States.
With interest in blockchain technology only growing, cryptocurrency is poised to continue its explosion into the next couple of years. Believe it or not, crypto and marijuana have a lot in common. These two growing industries have much to provide to one another, and there are some projects already looking to make the connection.
CannabisCoin and The Future of Buying Marijuana
Right now, there is a still a federal ban on marijuana. Dispensaries have to fight between federal and state laws, most without legal access to banks. Those who can find banking still pay enormous fees to do so. Fees raise the price of cannabis, and a cash-only solution makes it ever so difficult to operate in our digital age while increasing risk for delivery services. As a result, both the patients and the dispensaries lose.
Currently, in development, CannabisCoin (CANN) is a blockchain project looking to solve these issues. While some coins are revolutionizing distribution and production, CannabisCoin focuses on payment solutions.
As you may know, the blockchain serves to remove reliance on third-parties like banks. Bitcoin (BTC) is a prime example, allowing users to convert their local currencies into a universal digital asset stored on the blockchain.
CannabisCoin is similar, though with a focus on dispensaries and marijuana. Instead of a replacement for currency like BTC, one CANN will be equivalent to one gram of marijuana. The current plan doesn’t have just a few dispensaries selling CANN-registered marijuana but rather an adoption across all retailers, allowing for the value of the coin to settle into a stable groove pricewise.
Not only would this change allow dispensaries to keep their marijuana at a reasonable price, it would also allow digitally storing their funds and not rely solely on cash. Also with this system in place, dispensaries could be able to facilitate delivery services. Seperately, potential opportunities for the blockchain include partnering up with growers and suppliers to streamline and document the distribution process (all compliance needs to begin with).
The Current State of CannabisCoin
Initially, CannabisCoin was a project by an ambiguous group based in Arizona. For an unknown reason, the group disappeared in 2015, and the project was thought to be dead until it was picked up by the blockchain community in 2017. Under the moniker “CannabisCoin Cooperative Effort,” the new team plans to reincorporate the CannabisCoin blockchain into the marijuana industry.
While the original project worked with a proof-of-work mining system, the new take on CANN will utilize a proof-of-stake algorithm or a blend of the two. As of this writing, CANN has a market cap of $3,335,437 or 405 BTC.
How Marijuana Can Already Help
You may be wondering what is the point of all this? After all, marijuana is federally outlawed for a reason, right? While the legality of weed is still in question, the drugs medicinal properties are undoubtedly real.
Marijuana is a lot more complicated than just getting high and lounging around. There are two significant compounds: Tetrahydrocannabinol (THC) and Cannabidiol (CBD). THC prompts brain cells to exert dopamine, resulting in a euphoric experience for the user. When taken in small doses, THC is believed to improve memory functions, raise the appetite of AIDS patients, and to treat nausea from cancer medications.
The more popular medical compound is CBD. As a clinical ingredient, CBD is ideal for numbing pain, anxiety, seizures, inflammation, and more. All sorts of untreatable diseases like arthritis, diabetes, depression, and even chronic pain are all eased according to patients.
Users can choose between a high concentration of CBD or THC in their strains, alongside a hybrid of the two. While marijuana is traditionally smoked, one can consume it via ingestion or through oils. According to farma.health, is wildly popular for people suffering from eczema or acne problems and is seen as a healthier, natural alternative.
In fact, CBD is now even found in cbd dog treats to help dogs cope with anxiety, arthritis, and epilepsy. Unlike THC, patients may not even notice a “high” feeling when ingesting CBD, so it’s an ideal way to tend to dogs as well as humans.
CannabisCoin Can Change The Marijuana Industry
While the marijuana industry is currently dealing with distribution and funding issues, CannabisCoin and the blockchain can present a solution. Patients could pay remotely, prices would be fairer, and dispensaries wouldn’t have to rely on a third-party for anything.
The CannabisCoin Cooperative Effort is doing everything they can to make this a reality. There are so many polarizing powers at play here (including the current Trump Administration) and although less controversial than it used to be, marijuana certainly seems to have much in common with the blockchain world. Who knows? Maybe someday, we will soon see a future where everyone has access to fair-priced marijuana if they so desire.
Thanks for reading!