Top 4 Marijuana Cryptocurrencies
Why do weeds and cryptocurrencies work so well together?
The struggle to legalize fate is gaining ground MPotCoin (POT)
Launched in January 2014, PotCoin was one of the first cryptocurrencies for the marijuana industry.3 It was designed to solve banking problems for people looking to transact in legal marijuana. PotCoin is traded directly between people without the use of a bank or clearinghouse. Its creators wanted to take advantage of the legalization of marijuana in Colorado, and even installed an Automated Teller Machine (ATM) in Colorado at a marijuana dispensary.
Medical marijuana is legal in 36 states and in DC, while 18 states and DC states have legalized recreational use. Those numbers are expected to increase as more states explore ways to decriminalize the plant. Keep in mind, however, that marijuana is still illegal at the federal level—although there are two bills to legalize it in the House—which makes it complicated for anyone conducting financial transactions even in the states where pot legal.
Companies and operators that sell and/or distribute recreational and medical utensils are still prohibited from using banks in their transactions due to federal legislation. The development and use of marijuana virtual currencies have been ramped up in order to fill the gap in this market.
But the coin failed to make a significant mark, remaining in the shadows until June 12, 2017. A press release and video of former NBA star Dennis Rodman wearing a PotCoin.com jersey in North Korea gave PotCoin a chance in the arm.4 By funding Rodman’s trip, no Not only has PotCoin returned to the media spotlight, but its value has nearly doubled in just one day, according to CoinMarketCap. As of August 2021, its market capitalization was around $3.7 million – a big jump from $81,547 at the beginning of February 2014. One PotCoin was worth $0.01695 in August 2021. The coin is up nearly 70% year-to-date.
The supply of the PotCoin is limited to the 420 million coins. It is traded on three markets and has also moved to Proof of Stake, which allows people to mine or validate mass transactions according to the number of coins they own. The important caveat is that PotCoin claims transaction speeds of up to 40 seconds, which is quite impressive compared to the speeds of Bitcoin.
CannabisCoin was also developed in the 2014, just a few months after the PotCoin. It is a proof-of-work, open-source, peer-to-peer currency that, like Potcoin, was intended to facilitate transactions for medical marijuana dispensaries. While it initially gained popularity, it failed to provide assistance to investors
How does it work? CannabisCoin promises to convert cryptocurrency directly to marijuana. Under the name CANNdy, there is a group of medicines and marijuana strains grown for the specific purpose of exchanging at the rate of 1 CannabisCoin for 1 gram of medicine.
DopeCoin – also known as Dopey – was founded by Adam Howell in January 2014. Little is known about the specific markets the coin serves except that “its mission is to provide marijuana enthusiasts with a modern and safe way to do business in the 21st century.”
According to its website, DopeCoin users can conduct transactions anonymously in less than a minute, and not pay any transaction fees or costs.
Started with the vision of creating the Silk Road for transactions in marijuana around the world, DopeCoin’s offer is limited to approximately 117 million traders. It is also a proof of ownership coin, giving investors a chance to earn 5% annual interest.
HempCoin also appeared in 2014, although its focus is less on the individuals who use it to buy weed. Instead, this cryptocurrency is designed to be used by the agriculture, medical, and recreational industries. The HempCoin website claims that its goal is to “help facilitate secure transactional relationships between farmers, distributors, and consumers.”
It is interesting to note that HempCoin is used in all areas of agriculture, not just those that involve weeds.