The CBD industry is growing steadily and taking the mainstream media by storm with reports of new CBD companies and products making front-page headlines on news sites. Both offline and online companies continue to release CBD-infused products to heal, entertain, and reduce pain caused by chronic diseases. Most of these companies are start-ups that enjoy a newly regulated and evolving market in the USA and UK, where the use and distribution of CBD oil are legal. Thus it contributes to the industry’s expansion.
The sector also uses blockchain technology infrastructure to overcome financing challenges presented by the conventional banking system. This technology helps because while the ordinary CBD user worries about getting their Sunday Scaries and other health issues under control, CBD start-ups have to worry about complying with the legal requirements, funding the business, and maintaining the business’s healthy operations. Arguably, most cannabis entrepreneurs think blockchain technology and cryptocurrencies can potentially solve a significant percentage of these issues.
Cryptocurrency Might Help with the Growth of CBD Industry
Blockchain technology is an ideal transaction mode for cannabis users who want to protect themselves from cannabis’s bad image. Entrepreneurs capitalize on this quality to attract more users as more countries continue to legalize and regulate the cannabis sector.
Legalizing the cannabis industry allows people to discover the desirable qualities of CBD. This change of heart leads to an increase in demand for more CBD-based products for medicinal and recreational use. Cannabis entrepreneurs are using this logic to justify integrating blockchain technology into the CBD sector. Blockchain can fast-track the industry’s legalization process as it guarantees transparency during the farming, harvesting, and extraction process of cannabis. This transparency may reassure entrepreneurs and regulator’s alike of the CBD industry’s legitimacy and need for support. More importantly, CBD businesses can use blockchain technology to:
1. Keep Track of Supply Chains
CBD businesses can use blockchain technology to monitor their supply chains, connecting suppliers, and finally creating reliable chains. It streamlines the daily activities of the cannabis business. Additionally, it tracks CBD businesses’ consumption and production, making it easier to identify patterns and significant industry players.
Industry regulators can use blockchain technology to identify the source and distribution of cannabis, which helps curb the supply of illegal marijuana in the market. In essence, regulators can use this technology to keep pure organic cannabis in the market.
The CBD industry can use the supply chain, product quality, and transaction data obtained during the tracking process to expand and grow into new markets.
2. Auditing Health Records
Blockchain technology harmonizes prices and eliminates the challenges of duplicate prescriptions because it is transparent. This transparency builds confidence among industry players. Additionally, consumers using blockchain technology trust prices of CBD products sold through the platform because the trader’s pricing is shared cryptographically across the board.
Other than these concerns, there are more reasons why cryptocurrency entrepreneurs are flocking to CBD.
Prospects of Huge Growth in the CBD Industry
The CBD industry is growing steadily, and cryptocurrency entrepreneurs want a piece of this potentially lucrative sector. Some industry experts argued that CBD sales would overtake all cannabis markets by 2020. Today’s CBD market appears to be fulfilling the prediction. It is growing progressively, with more start-ups joining the market after the legalization of cannabis across different states in the USA and the UK. It is easy to see why the earlier prediction will pan out.
Both the cryptocurrency and CBD industries attract similar types of people largely because of these industries’ nature. Typically, the CBD and cryptocurrency entrepreneurs have to overcome hysteria and confusion when building a successful business. This struggle allows them to create a unique mindset that makes it easy for them to thrive in both markets.
The investors focus on developing the necessary technology to produce good quality consumer products and essential cannabis extracts demanded by other industries such as the beauty industry. Once the consumers are satisfied with the quality of products, demand might rise and drive market growth.
There is more to CBD and cryptocurrencies than what the mainstream media reports. This market might be a new and efficient way for consumers to get their CBD supplies without fear. It might also be a way for businesses to streamline their activities and position themselves well in the market through partnerships and collaborations.