What are Marijuana Cryptocurrencies?

by Andrew McGuinness     Jul 16, 2019

Cryptocurrencies, as you might have heard, are digital currencies that allow transactions without third parties involved. Decentralized storing and utilization of your funds is also a feature of cryptocurrency. It is more private than fiat currencies as well, even allowing for anonymous accounts to be created in order to hold your money.

So, this is what cryptocurrency is all about, but what about marijuana cryptocurrencies? The following is an overview covering what exactly marijuana cryptocurrencies are, why they were created, what purpose they serve today, and whether they currently have that much of an impact on the world of weed.

1. Definition of marijuana cryptocurrencies

A majority of the more successful marijuana cryptocurrencies were founded in 2014, 5 years after Bitcoin. The reason why most of these were founded was in order to allow for secure and private payments and sales of marijuana through an exchange platform. Some also enjoyed the idea that the farming industry and dispensaries would be able to interact with each other directly, without third parties involved. This would mean quick transactions straight from the farmers to those selling the products and vice versa.

2. Purpose of marijuana cryptocurrencies today

Today, marijuana cryptocurrencies are actually not used as much as founders may have expected. This is because the audience for cryptocurrencies is really not as expansive as most of us might think. Yes, we hear about bitcoin and other digital currencies all of the time in the news or online, but what percentage of the world’s population has invested in cryptocurrency or actually knows enough to implement it? The answer to this is not many.

All around the world, when cryptocurrency users are counted up and combined, they amount to a mere 12 million people. This is an incredibly small percentage of those who own a bank account, for example.

Despite the fact cryptocurrency has been on the rise and has indeed been doing well for itself, it still has a long way to go before reaching the heights of recognized financial institutions. It is also necessary for it to reach audiences far and wide, of all ages and ethnicities. This will undoubtedly take time and an exceeding amount of effort. Eventually, however, marijuana cryptocurrencies may be used the way they were intended to be used.

3. Impact on the marijuana business

Marijuana cryptocurrencies don’t actually seem to have affected the marijuana market as much as it intended to. The truth is, cryptocurrency is still too new to reach an audience expansive enough to make a noticeable impact on an industry of any kind. Especially marijuana cryptocurrency, a majority of which has only been available for the past four years. Instead, the marijuana industry is sticking to its mostly cash transactions.

Customers and businesses fail to see how anything can be more convenient, efficient, or quick than cash when it comes to fulfilling transactions concerning marijuana. It seems a bit overly complex to exchange money for digital currencies and then use these digital currencies on a downloaded exchange platform where you can then go about purchasing weed.

Rather than doing this, most marijuana consumers find it easier to just find an ATM, withdraw cash, and make the purchase directly. Using cryptocurrency was made easier since it is currently being allowed as a payment method at a number of medicinal marijuana dispensaries, but this is not to say that people have taken advantage of the offer.

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