Though marijuana stocks and exchange-traded funds (ETFs) offer the most common kinds of marijuana-related investments, cannabis cryptocurrencies have been on the rise lately, especially among crypto enthusiasts looking for exciting investment opportunities in the cannabis industry.
With more intense expectations around the legalization of the cultivation and use of cannabis in the US, especially after the recent federal cannabis offense pardons by the current administration, it’s projected that the US cannabis market will experience massive growth.
But what is the best cannabis crypto to look out for this year? We review the details to help investors find the best option(s).
The Emergence of Cannabis Cryptocurrencies
The global marijuana industry faces many challenges, including market volatility, mixed investor sentiment, and a reputation for being a high-risk business. However, the most significant challenge of the global cannabis landscape for businesses and consumers is regulation.
At the federal level, cannabis is categorized as illegal, but states like Arizona, Colorado, Washington, and Massachusetts have state-level laws that allow the use and consumption of cannabis for either/both medicinal or recreational use.
Many crypto-focused investors who want to invest in cannabis or purchase cannabis-related products without the typical regulatory issues can do so using marijuana-backed cryptocurrencies.
Since the government doesn’t control or regulate cryptos, people can leverage the decentralization that cannabis cryptocurrencies offer to invest in pot stocks or pay for marijuana products and services securely and anonymously.
Top Cannabis Cryptocurrencies to Watch
Here are the best cannabis Cryptocurrencies to keep an eye on this year – and why they are interesting.
HempCoin (THC)
HempCoin (THC) was launched in 2014 as one of the earliest digital currencies in the marijuana space. The coin has a market cap of $188,492 and currently trades at $0.0007047, with a massive growth potential represented by its solid community of users and investors.
The top feature of HempCoin is its support for cannabis farmers. Unlike many hemp cryptocurrencies, the coin moves away from digital payments for cannabis products to create a secure payment relationship across marijuana farmers, distributors, and end consumers.
The 360-degree approach to facilitating cannabis-related payments is what makes HempCoin sit at the top of our list of the best marijuana cryptocurrencies. On top of that, the crypto company offers services beyond the marijuana space, as its coin is also used for digital payments in the agricultural industry.
With sources of revenue across the marijuana and agricultural industries, HempCoin is one of the best coins to buy right now, as its potential extends beyond the primary marijuana space.
PotCoin (POT)
Next on our list of the top cannabis cryptocurrencies is PotCoin (POT). The cryptocurrency was created in 2014 and has been around for as long as the earliest marijuana cryptos hit the market. However, PotCoin didn’t become popular until 2021, after Dennis Rodman was seen wearing a PotCoin.com shirt.
Afterward, the coin’s value skyrocketed, but it is currently trading at $0.008536 per token. However, the project’s market cap is unverified at the time of writing. Nonetheless, PotCoin is a major player in the industry’s transaction space, with a focus on helping legal cannabis companies solve payment issues.
Though the current POT’s price is far from its $0.51 all-time high price, the token has shown tremendous potential in the past. Similarly, the price fall is likely due to the general crypto market downturn that has seen top cryptocurrencies like Bitcoin and Ethereum also falling significantly from their all-time high prices.
CannabisCoin (CANN)
CannabisCoin is another top consideration when thinking of the best marijuana-based cryptocurrencies to invest in. Like PotCoin and HempCoin, the cryptocurrency was launched in 2014, ranking it among the earliest batch of marijuana cryptos that set out to solve significant payment challenges in the industry.
At its core, CannabisCoin is for transactions between medical cannabis dispensaries and their customers, and with a market cap of $314,029 at the time of writing, the coin has a significant market share. Similarly, CANN is valued at $0.004065 per token, making it one of the most valuable hemp cryptos on the market.
Another attraction to CannabisCoin is its global payment feature that allows token holders to make digital payments anywhere in the world. And with the coin built on the Bitcoin network, it’s safe to say its future potential is massive, as it will benefit from the growth of the world’s largest cryptocurrency, Bitcoin.
DopeCoin (DOPE)
DopeCoin (DOPE) is the last option on our list of the best cannabis cryptos worth investing in in 2023. The crypto asset was created in 2014 with the goal of providing users with a digitally secure way of executing transactions in the marijuana industry. Today, marijuana enthusiasts, including businesses and consumers, can use the payment solution to execute instant transactions with zero fees.
Additionally, DopeCoin has a market cap of $259,793, which is among the highest in the cannabis payments ecosystem. The DOPE token is trading at $0.002223 at the time of writing, which is significantly lower than its major competitors. However, it remains a valuable asset because of its use cases and proof-of-stake capabilities.
These include a crypto staking feature with up to 5% annual percentage yield (APY) for token holders who lock their assets in the DopeCoin pool. There are also decentralized finance (DeFi) features like lending and borrowing, offering investors more opportunities.
The Impact of Cryptocurrencies on the Cannabis Market
According to experts, one of the major catalysts that will help the global marijuana industry reach its massive potential is regulation. Currently, cannabis is classified as illegal by US federal laws, making it a high-risk venture for businesses, investors, and consumers. Though some US states, including Washington, Colorado, and Arizona, have state laws that decriminalize the cultivation and consumption of marijuana for recreational or medicinal purposes, many states align with the US government’s stance.
As a result, cannabis enthusiasts have devised various means to circumvent the country’s restrictive laws, one of which is marijuana crypto. Like regular assets such as Bitcoin and Ethereum, these coins are opening up the cannabis industry with decentralized payments that are not bound by any government laws.
With such cryptocurrencies, businesses and consumers in the cannabis space can process transactions without fiat currencies. The cryptocurrencies also double as investment opportunities for users looking for alternative ways to invest in marijuana outside stocks and ETFs.
What is the Future of Cannabis Crypto?
Currently, banks and other financial institutions refrain from working with cannabis companies because they are considered high-risk. Cryptocurrencies like HempCoin and PotCoin offer alternative means for players in the marijuana industries to easily exchange goods and services for money within a few seconds to minutes.
In essence, all parties can bypass the strict financial systems and laws that limit payments and similar activities in the marijuana industry. Altogether, the future of the integration between cannabis and cryptocurrencies is exciting because it offers massive potential for businesses to operate more seamlessly and eliminate one of the industry’s most significant bottlenecks.
Similarly, blockchain technology can be used to build more efficient supply chains that will help marijuana companies manage their stocks, demand, and supply better with no lags or manual documentation.
Conclusion
Cannabis cryptocurrencies allow you to purchase marijuana legally on the U.S. market. Some of these digital currencies can execute instant transactions with low fees, but others lack functionality. We’ve curated the best four marijuana-based digital currencies on the market.
These assets boast real-world use cases, high transaction efficiency, low transaction fees, and significant future potential. In other words, investors looking to diversify their portfolios can combine different marijuana cryptos or find the best cannabis crypto for their needs.
However, always bear in mind that the cannabis and crypto industries are volatile, so there are always risks to avoid or mitigate.
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Why You Can Trust The Marijuana Index
The information provided on Marijuana Index is solely for educational purposes. The selections presented here are the product of meticulous analysis by an experienced financial analyst. However, it’s crucial to remember that these choices may not universally fit every portfolio.
Before making any investment decisions, we strongly encourage you to conduct thorough research. This ensures that any potential investment aligns with your unique financial goals and risk tolerance.
As of the date this article was written, the author does not hold any positions in the stocks or ETFs mentioned.
We do not provide personalized financial advice, advisory services, or brokerage recommendations. Nor do we advocate for the purchase or sale of specific stocks or securities. Please be aware that performance information might have changed since publication, and past performance should not be seen as an indicator of future results.
Investing in cannabis stocks carries its own set of risks, reflective of the evolving legal landscapes and market volatility inherent in this industry. As an investor, it’s essential to be aware of these risks and consider them carefully in your decision-making process.
To understand more about our commitment, we encourage you to learn more about us. If you have more questions for our cannabis specialist editors, do not hesitate to contact us. You can also send us a tweet at @Marijuana_index. Stay updated with the latest cannabis news by subscribing to our Newsletter.
Tobi Opeyemi - Financial Writer
Tobi, a journalist and crypto writer since 2017, is renowned for his educational content in the digital currency realm. His journey includes a significant tenure with Stockbossup, an investment platform committed to enlightening the black community on financial matters. Before this, Tobi honed his skills as a copywriter at Turboxbt, a platform specializing in cryptocurrency trading. Notably, Tobi's insights are featured on Investopedia, where he contributes articles on a range of topics. He is also celebrated as one of the top web3 creators on LinkedIn, known for content that consistently drives engagement and sparks conversations in the industry. With a background in Pharmacy, he brings a unique perspective to his writing, especially in the Cannabis sector.
