Introduction
If the Internet of Things is the fastest growing industry globally, crypto and CBD are undoubtedly next on that list. In fact, the CBD industry is already worth billions, and the number is showing signs of a steady rise in the years to come. On the other hand, the total market cap of all cryptocurrencies stands at over USD 300 billion. Though it is still a volatile market, the rising market valuation shows signs of hope.
However, if you have a limited idea about both the markets, you would see zero or little connection between cryptocurrency and CBD. Once you dig deeper into the matter, you would note a profound connection between CBD and cryptocurrency where each can help the other.
Cryptocurrency as a Solution to Banking Issues Of CBD
The Farm Bill of 2018 legalized the growth of industrial hemp that the CBD industry primarily uses. But cannabidiol does not have federal approval. The marijuana industry constantly suffers from the issues of finding a reliable banking solution. However, the CBD market is in slightly better condition.
More states might tolerate CBD than cannabis, but the former still does not have federal approval. Regardless of the apparent differences between cannabis and hemp, many banks still regard the companies in this sector as marijuana-based enterprises. Though some financial institutions allow CBD brands to have their protected bank accounts, others are not compliant. The cheapest CBD oils in real terms aren’t always the smartest option to get. The value of a CBD oil should take into account all hemp-derived compounds, not only CBD.
But CBD companies can make things easy for themselves by letting the customers pay in cryptocurrencies like Bitcoin. A collaboration between cryptocurrency firms and CBD companies has already become a reality. For instance, Swissx has several Banks of Cannabis worldwide to facilitate legal transactions of marijuana all over the world. The endorsements from celebrities like Snoop Dogg and Mike Tyson have already put Swissx in a good position.
Crypto and CBD: A Union of the Two Outsiders
The most obvious link between CBD and crypto is that they are both outsiders to the mainstream industries. The establishment still views both these aspects with suspicion, even though the cannabidiol market has become more mainstream now than ever. Bitcoin has ultimately received a small amount of respect from some investors, though it is still far from getting the acceptance it deserves.
Both industries keep on trying and proving the doubters wrong by being the consistently developing sectors in the world. Moreover, working in the cryptocurrency sector often leads to massive levels of anxiety and stress.
The Solutions Suitable the High-Risk Markets
By keeping a close eye on the crypto market, you will notice the sharp rise of cryptocurrency. It had remained in a good position for the past couple of years. Bitcoin can be a safe non-cash solution that makes it a great exchange option in the CBD sector, though the risk factors are bound to cross your mind.
The cannabis sector is generally known as a high-risk market. Therefore, CBD investors are all the time looking for secured payment options for the customers. Until this far, it seems as though cryptocurrency is the solution they’ve been searching for. Rather than letting the customers pay using Bitcoin and other crypto, CBD investors aim to partner with crypto companies. Thus, such convergences have become more commonplace now than ever.
After the emergence of the top cryptocurrency companies, CBD scandals have also reduced considerably. The CBD sector is not a high-risk market for the ones who receive payments or pay through cryptocurrency. Usually, the major issues faced by the CBD sector are about payment transparency. However, this problem seems to fade away because of the crypto-CBD convergence.
The Major Enticements of the Wallet Signups
Some CBD companies keep on enticing the customers to sign up for the crypto wallets for the transactions. Due to this factor, the relation between the two parties can end up in convergence. The important thing is that the companies don’t just want the customers to sign up for the crypto wallets, but they want them to do it all in time. So, the companies will be able to make sure that the online orders get dispatched without delay.
However, as CBD customers are typically tricky to entice with new solutions, the convergence of the two industrial sectors gets facilitated by significant enticements like special deals and loyalty programs that the customers find hard to resist. Appeals like that are also common in industrial hemp farms. Also, they are a significant influencer in the purchasing decision of CBD products worldwide.
The aspect of quality assurance also comes into play in this scenario. Though there is a long supply chain for CBD products, incorporating cryptocurrency means that the investors get to have a picture of the sector’s end-to-end route. Thus, it means that the product quality gets assured and checked all the time.
Rise of Cannabis-Specific Cryptocurrency
The union of CBD and crypto has reached such a stage that you can see cannabis-specific crypto nowadays. The collaboration between cryptocurrency companies and CBD investors has led to the creation of $Weed, the Single Point product. The retailers and customers can use Bitcoin for the CBD transactions and $Weed for the same purpose.
After the launch of $Weed, the liquid market of cannabis capped at nearly sixty million dollars. Any investor would get excited about this number. As $Weed is off to a good start, you can expect to see many such collaborations between CBD investors and crypto companies in the days to come. Besides that, PotCoin, DopeCoin, CannaCoin, CannabisCoin, and HempCoin are also popular CBD-based cryptocurrencies. PotCoin is among the earliest cryptocurrencies that came into the market in 2014, but it started gaining popularity in 2017 June. Both DopeCoin and Cannabiscoin came in 2014, right after PotCoin.
The Takeaway
There is no denying that crypto and CBD convergence have been great news for the country’s CBD users. The two sectors are booming in their own ways, and a collaboration between them can only be lucrative. Think of it as a situation where the combined power of the two is better than the one.
