The general election of 2016 wasn’t just famous (or infamous) because of President Donald Trump. Amid the uproar, individual states voted in record numbers for marijuana legalization to varying degrees. Subsequently, “herbal investments” have skyrocketed in popularity. But if you’re thinking about “going green,” don’t forget about marijuana cryptocurrency, or cryptos riding weed’s big electoral victory.
At this rate, it’s difficult to distinguish which industry will be more profitable over the next five to ten years: cannabis or crypto. Both forged new sectors and economies that never existed previously. Both are also incredibly disruptive. Wall Street and big government are keeping a worried eye on crypto. Medical cannabis has the potential to negatively impact big pharmaceutical companies’ revenue stream.
Also, don’t overlook favorable legal developments. While the federal government still considers cannabis a Schedule I drug, ballot victories make enforcement questionable. On the crypto end, regulatory agencies apparently are learning to live with the blockchain. This probably means we’re not going to see a crypto ban, so long as most participants pay their taxes.
But with marijuana cryptos, investors don’t need to choose between either burgeoning industry. While risks abound, fundamental momentum should drive both sectors for years to come. In addition, the recent pullback in crypto markets makes buying today an intriguing proposition.
Here are three marijuana cryptos you definitely shouldn’t ignore!
When bitcoin first gained mainstream awareness, it catapulted to four digits before entering a multi-year lull. However, in 2017, bitcoin firmly established itself as a disruptive investing and financial vehicle. The developers of PotCoin hope to achieve similar successes in the cannabis industry.
According to their website, PotCoin was the first among marijuana cryptos to forward a digital currency solution for cannabis businesses. Given the enormous success of the blockchain and the legalization movement, it certainly won’t be the last. Since its market introduction in February 2014, PotCoin has delivered nearly 4,700% returns!
However, that statistic shouldn’t throw off discount-seeking buyers. For starters, PotCoin is already steeply discounted; year-to-date, the crypto is down approximately 46%. And unlike other alternative digital tokens, PotCoin’s supply isn’t insane. The maximum token number is 420 million, and currently, 219.2 million are outstanding.
As far as the fundamentals go, several mainstream and crypto-centric news outlets have featured PotCoin. In addition, acquiring PotCoin is a lot easier than other newly minted marijuana cryptos. In addition to a coin wallet, you can trade bitcoin for PotCoin in popular exchanges Bittrex and Poloniex.
Overall, if you’re looking to boost your cannabis exposure, PotCoin is a smart, speculative bet.
If you really want to swing for the fences, DopeCoin probably gives you the best chance among marijuana cryptos. At the time of writing price of only 11 cents, DopeCoin has a lot of potential. I don’t need to remind anyone that Ripple was once trading hands for less than a U.S. quarter.
But can DopeCoin replicate Ripple’s improbable success? After all, international banks and financial institutions endorsed the Ripple blockchain. Even if Cheech and Chong endorsed DopeCoin, the “support” wouldn’t likely count for much.
But before you brush off marijuana cryptos entirely, consider that DopeCoin has a circulating supply of nearly 117 million tokens. In sharp contrast, Ripple has nearly 39 billion coins outstanding. Even if DopeCoin jumped to $2, it actually wouldn’t even crack the top 100 of most valuable cryptocurrencies.
Finally, Ripple is a centralized platform, and the underlining crypto cannot be mined. That’s a major red flag for true blockchain proponents, where decentralization is king. DopeCoin adheres to the blockchain’s original intent; Ripple simply does not.
That said, I want to warn that between DopeCoin and PotCoin, the former is definitely riskier. Check out their website, which I find comically amateurish and gimmicky.
Still, if you want explosive return potential and can stomach the risk, check out DopeCoin!
Most marijuana cryptos are geared toward the broad cannabis sector, which obviously includes recreational use. However, if you’d rather not deal with the casual aspect of this industry, and instead focus on the beneficial side, you should definitely consider HempCoin.
According to their website, HempCoin is the first among marijuana cryptos dedicated to the farming and agricultural sector. While they have some exposure to recreational cannabis smoking, the HempCoin developers’ primary purpose is to impact the supply chain. By replacing fiat currencies with HempCoin, every cog in the farming and distribution channel can become more efficient.
Out of the available marijuana cryptos, HempCoin is the most ambitious. That’s great on one end because it implies that management has a long-term strategy for the digital token. On the other hand, though, if the development team doesn’t make substantive progress, the entire project could fall apart.
Ultimately, I believe HempCoin has the most credibility compared to other marijuana cryptos. Plus, its focus on agriculture and hemp, which is the non-psychoactive cannabis variant, makes HempCoin less vulnerable to legal challenges.
To round out your exposure to marijuana cryptos, HempCoin is a solid investment.
As of this writing, Josh Enomoto is long all the cryptocurrencies mentioned in this article.
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