Cannabis is a narcotic drug made from the plant of the same name. It’s legalized in some countries and some states in the United States. Bitcoin is a way in the cannabis industry to make secure and anonymous payments. However, there are also many cannabis cryptocoins that can be used to buy cannabis with the value of a coin. Such alt-coins have cannabis as a reserve, so they can be used not only as bitcoin for cannabis but also for other goods. A look at the history of five cannabis tokens: what happened to the hype?
A guest contribution by Reiner Schmidt: Today retired, artist and hobby astrologer, the trained banker, old hippie, globetrotter and long-time quality manager would like to take a completely different, unfamiliar look at crypto, blockchain and the new era.
Cannabis and cryptocurrencies
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The cannabis and cryptocurrency sectors have both seen a tremendous boom and slumped in recent years. It’s no secret that the marijuana industry has been hampered over the years. A major problem with this is the relative reluctance of financial institutions to do business with cannabis traffickers.
However, new cryptocurrencies may finally allow the cannabis industry to reach their true financial levels. And, of course, the cryptocurrency would also benefit massively from „cooperation“. After all, the cannabis market would offer an incredibly reliable and steady stream of customers.
Savvy companies have seen this for some time and created digital currencies specifically for the „weed market“.
Five crypto cannabis coins have already attracted a lot of attention in the past. However, the crypto space is incredibly volatile, partly because there are hundreds of coins and tokens available. 99 percent of them will probably fail. Whether the above-mentioned „grass coins“ belong to it?
Introduced in January 2014, this cannabis coin is one of the longest running. There are currently 420 million PotCoins in circulation. However, the currency started off relatively slowly. After hitting $ 1 million in market cap in April 2014, it fell to $ 244,000 in a month.
Many experts at the time believed that PotCoin would hit $ 0.45 by the end of 2018 and $ 0.60 by the end of 2022. As of December 2018, it was only worth $ 0.012. While Bitcoin and other major digital currencies rallied, PotCoin never did. It remains stuck at $ 0.0109, with a brief outlier to $ 0.027 in April 2019.
CannabisCoin came just a few months after PotCoin. He had a similar goal: to simplify transactions for medical marijuana dispensaries. It has been suggested to provide a super easy exchange ratio of cryptocurrency to actual marijuana. For example, for certain types of medical marijuana and cannabis preparations, you can exchange CANN at the rate of 1 token to 1 gram.
Like other crypto cannabis coins at the time, CANN benefited from legalizing marijuana in California. Most experts didn’t see it trading well above $ 0.30 by the end of 2018. They forecast a value of around 0.37 US dollars for 2022 – and were completely wrong.
CannabisCoin fell over 90 percent to just $ 0.03 in March 2018. Within 12 months, its value was only $ 0.005. He looked doomed but has recovered slightly in the meantime. Today one CannabisCoin is worth 0.011 US dollars, which is practically the level of PotCoin. There are 106 million tokens in circulation.