Although they classify investments based on development potential and risks, investors are predisposed to put cannabis, cryptocurrency, and biotech in the same group. Both individuals and corporations have slowly become accustomed to cryptocurrency, but cannabis is cultural amity for consumers.

Cannabis and cryptocurrency investments have been positively associated because of their fiery price movements and quick capitulation. The systemic venture for both is found in regulatory urge and legislative hazards, but cannabis has been liable to this for the last few dozen years. Overall, perceptions of cannabis had enhanced since 1971, when Nixon started his 'war on drugs,' with demonstrated medical benefits for various conditions, including cancer and epilepsy.

Cannabis-derived products are legal in Canada since 2019 as the authorities considered the numerous studies and trials that have been conducted and showed positive results. Cannabis products can be found on almost any Canada weed dispensary.

So why are cannabis and cryptocurrency often likened while at the same time considered different?

Cryptocurrency And The Blockchain System

For those unfamiliar with the topic, cryptocurrency is a digital currency that utilizes cryptography - a type of data transmission and conversion - to protect all its transactions. Crypto coins are decentralized, which means no bank, financial institution, or authority can control them; this also means that no government can interfere with the coins or manipulate them.

Cryptocurrency manages to be extremely secure because it functions on the blockchain system. The blockchain is a list of records - or blocks that consist of transaction data, timestamp, and the previous block data - secured through cryptography and linked together. A blockchain is secure since one cannot change the data in a block without altering the information on all the other blocks that follow.

The Science Behind Cannabis

CBD - or cannabidiol - is a cannabis compound found in the hemp plant. Like THC, which is psychoactive, numerous studies have been carried out around CBD to determine whether this compound, once extracted, can be beneficial for people's health.

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CBD impacts the body's Endocannabinoid System (ECS), including other body structures such as the immune system and the nervous system. The ESC keeps the body's homeostasis, maintaining us healthy and all our organs and systems functioning properly.

Cannabis has been proved to positively affect mood, sleep, appetite, and mental issues. CBD oils and creams have been found to deliver relief to acne and joint pains while having significantly fewer side effects than other pharmacy products like pain medication and creams.

Cannabis And Cryptocurrency

While grouping assets for a consistent risk is not the best thing to do, there are a few similarities between cannabis and cryptocurrency from a qualitative perspective. Those sectors are being impeded by powerful lobbies who are prone to lose revenue if they go through, such as big pharma for cannabis and the whole banking system for cryptocurrency.

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Cannabis and cryptocurrency can both address some vital pain points worldwide, some of which are not related to their primary goal and are interlinked with each other. For instance, hemp, a type of cannabis plant, is easy to grow while having an incredibly high yield - this makes it an ideal replacement for cotton and can save trees from the paper production process, further benefitting more effective recycling.

The primary goal of cryptocurrency is to develop a transparent and clear financial system, exempted from the hooks of corruption and bureaucrats driven by agendas - and help with financial inclusion, bringing efficient payment methods to those unbanked, with numerous initiatives already in place.

Is Cryptocurrency The Solution For The Cannabis Industry?

The two industries might seem like a match made in heaven - the revenue-bringing industry dismissed by banks meets an undetectable monetary network. Still, cannabis and cryptocurrencies have yet to hit it off. Starting with seeding and to the selling process, business is still mostly done in cash. Despite famous spokespeople and enormous dollar figures, crypto coins have not yet entirely caught on fire with people.

John Downs, director of business development with The Arcview Group, a cannabis consulting firm, says: "There's a lot of sound and fury, but it doesn't signify as much for the cannabis industry as one might believe if they just read the headlines."

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Some dispensaries already accept crypto, but it has not met widespread adoption as of yet. However, numerous entrepreneurs have created unique cannabis or marijuana-specific digital currencies. The reason is that these coins are private, and the other cryptocurrencies are public.

So, is cryptocurrency the solution to the cannabis industry's banking issue? Although the truth may be too early to tell, both sectors complement each other well, work together, and are continually evolving.

​Bottom line, each cannabis business must do their research and choose the payment options that correspond to their risk tolerance levels while waiting for mainstream adoption of both systems. At that time, cryptocurrency may be only one of the many viable payment solutions for cannabis businesses and consumers.

About the author

Sharon is a full-time content marketing specialist. She has been closely following Cannabis Healthcare and Medical Industry trends for quite some time. She dabbled in various domains before the Cannabis industry. On her off days, she likes to spend her time at the nearest animal shelter, lift weights, or be nose deep in a novel. She is a fan of Sidney Sheldon's novels.

Contact Sharon at: sharon@vape-news.co