Cannabis cryptocurrency: A wise investment?

Cannabis’ federally illegal status has muddied the waters for industry players to conduct transactions via traditional banking methods, e.g. credit and debit card payments. Fortunately, cannabis cryptocurrency holds promise as a solution to the industry’s banking woes.

To avoid missing out on valuable business, many dispensaries are trying their hand at serving customers with mainstream cryptocurrencies, including Bitcoin and Litecoin.

Developed with the goal of meeting a banking need in the legal cannabis market, cannabis cryptocurrency is recognized as the only instant alternative to cash-only businesses.

But just how solid are cryptocurrencies in terms of investment? Let’s take a closer look at this type of digital currency and the best options for cannabis-focused investors.

About cannabis cryptocurrencies

Since more cannabis businesses are turning to cryptocurrencies and digital assets as a means of facilitating transactions related to cannabis which is still considered to be a federally illegal substance there’s no wonder why investor interest in this area is inflating so rapidly.

Plus, as the crypto market continues to mature in 2022, there are plentiful reasons to dabble in such deals. Some of the main appeals include:

  • Simple and private transactions
  • Portfolio diversification
  • Significant industry growth and appeal
  • Desirable security
  • Inflation hedge
  • Impressive return on investment
  • Fast settlement and affordable fees

Data suggests that the cryptocurrency market surpassed $2 trillion in value as of April last year. Moreover, analysts responsible for composing the MJBizFactbook claim that legal cannabis could bulk up the economy with an additional $160 billion by 2025.

Recommended cannabis cryptocurrencies for investing purposes

Cannabis cryptocurrencies are digital assets that come in many forms, including tradeable tokens and coins.

Some of the most popular cannabis-focused options include the following:

  • CannabisCoin (CANN) – Today’s price is $0.02222.
  • DopeCoin – Today’s price is $0.002836.
  • HempCoin – Today’s price is $0.008506.

Despite the obvious appeal of remaining afloat in the cutthroat cannabis industry with digital asset-trading strategies, not to mention simply investing in cannabis cryptocurrencies via a digital stock exchange, first time investors should proceed with caution.

It’s important to note that The U.S. Treasury Department recently published an in-depth report into the regulations surrounding cryptocurrency with one goal in mind: to deter businesses in all industries (including cannabis) from concealing transactions. 

In particular, the report indicated that cryptocurrency “poses a significant problem by facilitating illegal activity broadly, including tax evasion.”

Should you be considering investing in cannabis cryptocurrencies, it’s best to do your research first and to only part ways with money that you are willing to potentially lose… or gain.