What is cryptocurrency?
Cryptocurrency is a form of digital or virtual currency, like money but internet-based. It uses cryptography as a form of security which makes cryptocurrencies almost impossible to counterfeit. Cryptocurrency uses blockchain technology, a ledger that keeps records of all transactions. It is a secure form of making payments without having to go through banks.
What is CBD?
CBD or cannabidiol is a cannabinoid found in hemp plants. It is non-intoxicating and boasts anti-inflammatory, analgesic, and antioxidant properties that help treat different
maladies. An entire industry sprang to life around this compound. The CBD industry is projected to have a market value beyond $50 billion in a few years.
CBD and Cryptocurrency — a partnership
These two industries appear to have been made for each other. Though the federal government has made the production, use, and distribution of CBD-derived materials legal, some more traditional banks are still hesitant to get involved in the industry given its divisive past.
Enter cryptocurrency. Cryptocurrency as a form of payment is above board and lawful. It is also very transparent in that the ledger, blockchain, is public. Every transaction is recorded and traceable. The nature of cryptocurrency allows individuals to have a medium for exchange that bypasses banks that also provides security from counterfeiting and double-spending.
Crypto entrepreneurs have seen an opening for them to have a foothold in the burgeoning CBD industry. Because of this, cryptocurrencies based on CBD have popped up.
Crypto cannabis coins
There are thousands of cryptocurrencies available currently out there. But as the cryptocurrency and cannabis industries established their partnership, many cannabis-centric coins emerged.
Perhaps the best-known cryptocurrency in the CBD space is PotCoin. It is a Canadian cryptocurrency that was established in 2014. Back then, very few banks wanted to be involved with the cannabis industry. PotCoin was created as a solution to this. It provided an exchange medium for CBD businesses and their customers.
CannabisCoin was established around the same time as PotCoin. They both had the same purpose behind its creation — to help cannabis businesses get off the ground by providing a medium for exchange outside of the banking industry that was both secure and legal.
Other CBD and cannabis-based coins have also been established such as HempCoin and Paragon Coin. Even Bitcoin and Litecoin were and still are, used within the CBD industry.
Despite the fall of Bitcoin in 2018, which is recovered from, there is still an upward trend in mobility for cryptocurrencies. Blockchain technology is becoming more common and more investors are making investments not just in cryptocurrency but in the CBD industry itself.
Rarely has any two industries been as compatible as the cryptocurrency and CBD industries. The projected market values for both industries are projected to get higher in the future. With better technology and more secure ways of currency exchange are established within these industries, more investors and businesses will join this collaboration. And the CBD customers and the crypto investors will all be better served by this partnership.
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