By Alex Moskov
Cannabidiol, or CBD for
short, has long been lauded for its potential significant medical benefits and
pain-reducing
aspects. But for all of its popularity and trendiness, CBD is still largely
misunderstood by population masses and regulators alike. Although the legislature
in the 2018
Farm Bill was recently passed, de-scheduling
hemp and CBD, there are still several pain points which circle the CBD
industry.
With the CBD industry expected to grow to $2 billion by 2020,
it’s no shocker that hundreds of entrepreneurs are viewing CBD’s pain points as
a call to arms to provide lucrative solutions to facilitate the growth of the
space. Many of these entrepreneurs are jumping head first into blockchain and
cryptocurrency, two relatively new technologies that could make a substantial
dent and potentially free the CBD space from its woes.
From Bongger (BGR) to Sativacoin (STV) to DopeCoin
(DOPE), there is no shortage of appropriately named cannabis-focused
cryptocurrencies coming out of the woodwork. The following article explores a
few of the most common and most legitimate cryptocurrencies that circle the CBD
space, as well as the innovative solutions they offer.
PotCoin (POT)
PotCoin reached an all-time-high market cap of
roughly $93,129,000 USD in 2017 and currently sits around $2,900,000 USD. There
is a limited supply of PotCoin set at 420 million POT.
ParagonCoin (PRG)
Cultivators are able to enter their relevant crop
data and growth cycles, with the final harvest batches becoming linked to smart
contracts that track the flow to the point of sales. The immutability of the
blockchain would ensure that database information can’t be tampered with at a
later date or removed altogether, making it easier for businesses (and
regulators) to better understand the flow of products and lax liabilities.
Paragon would later trip into a lawsuit for failure
to register its Initial Coin Offering (ICO) with the SEC, which served as a
landmark case for all ICOs in the industry. ParagonCoin reached an
all-time-high market cap of roughly $57,000,000 USD at the start of 2018 and
currently sits around $8,000,000 USD.
Bitcoin and Litecoin
Although not branded as cannabis-based
cryptocurrencies, Bitcoin and Litecoin are popular choices for businesses and
consumers transact for cannabis and CBD-related products.
Many cannabis and CBD businesses set up portals to
accept Bitcoin and Litecoin early on to circumvent opaque regulations that
prevented them from accepting credit card payments. As Bitcoin and Litecoin
grew their user bases exponentially in 2017 and 2018, many more businesses
jumped on board.
Although both cryptocurrencies provide the same end
result, they differ in small ways. Bitcoin tends to be more popular due to its
massive user base and liquidity, and Litecoin is sometimes preferred because of
its lower transaction fees.
Final Thoughts
As the CBD and cannabis space continues to grow, there will likely be an
increase in the number of entrepreneurs leveraging the power of blockchain and
cryptocurrency to facilitate their business needs. By understanding the current
economic and regulatory climate, as well as the technological applications of
cryptocurrency, these business owners will be much better equipped to position
themselves as leaders in their respective fields.
Original Post: https://madebyhemp.com/most-common-cryptocurrencies-circle-cbd-space/
Alex Moskov
Alex is the Editor-in-Chief of CoinCentral, a leading cryptocurrency and
blockchain media publication. Alex also advises blockchain startups, enterprise
organizations, and ICOs on content strategy, marketing, and business
development. He also regrets not buying more Bitcoin back in 2012, just like
you
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