What you should Know About the MJ Banking System
In a nation where several states have legalized the medical, if not the recreational use of marijuana, yet it is still illegal on a federal level, it’s no wonder that the cannabis industry is primarily a cash-only business. Many banks are prevented from working with even the legalized dispensaries, grow operations, and other components of the industry thanks to a federal law that says banks cannot touch the proceeds gained from illegal substances. Hence, an estimated 70% of marijuana businesses operate on a cash-only basis and do not have bank accounts. A solution was needed, since the federal change if it comes at all, is bound to come slowly.
While some states did approve banks to handle cannabis-derived money, there were a lot of legal hoops to get through. Those dispensaries that cut through the bureaucratic red tape saw a lot of fraud. Chargebacks were a common occurrence and the same thing occurred with personal checks. Something needed to change.
Like BitCoin, PotCoin is a “cryptocurrency” and was primarily created with the hopes that it would rise to be the primary currency used within the legal cannabis industry worldwide. The biggest draw to PotCoin was the fact that it was supposedly anonymous, allowing people to buy and sell cannabis and other cannabis products like concentrates and oils as well as different types of dry herb vaporizers without using cash.
Introduced in 2014, PotCoin saw an ATM-related to its currency installed in a couple of Colorado dispensaries. By the end of the year, around November, 44 merchants were accepting PotCoin for goods or services. Before that, on April 19, 2014, the market capitalization of PotCoin soared to above $1 million in anticipation of the recognized counterculture or “stoner” holiday. However, the very next day, 4/20, prices plummeted, the price of the coins halving in one day due to investor speculation.
Early in 2015, the original development team broke apart and went their separate ways. It was the community who rallied around the cryptocurrency in an attempt to save it. In 2015, PotCoin updated its system to move to the PoSV algorithm, and as a result, many of the cryptocurrency exchanges froze their PotCoin wallets to wait and see what happened.
It works like this: PotCoin uses a cryptocurrency wallet to store, send, and receive PotCoins much like a physical wallet would be used to store cash. Numerous online services are dedicated to hosting PotCoin wallets and allow users to store PotCoins remotely and access them through a smartphone. Several digital currency exchanges trade PotCoin online. Users pay absolutely nothing to exchange PotCoins, and can usually exchange the cryptocurrency within 40 seconds, compared to BitCoin’s 10-minute transaction.
PotCoin is based in Canada and hopes to make the upcoming legalization set for next year work to its advantage. The announcement of the impending nationwide legalization of cannabis in October of last year caused the valuation of PotCoins to double. PotCoin intends on integrating with Canadian growers and dispensaries. Yet, it’s not all about making money for PotCoin. The company has philanthropic plans to let users reward marijuana charities with PotCoins.
Snoop Dogg, legendary musician, producer, and marijuana advocate, was presented with a $500 donation to his Snoop Youth Football League, a charitable organization created by the rapper that gives inner-city children between the ages of 5 and 13 the opportunity to play football and to cheer. It took the community 2 days to raise the 55,000 PotCoins needed to make the donation.
The Downside of PotCoins
The downside to cryptocurrency is that its values can vary widely. As stated above, values halved in just one day back in 2014 amid speculation. Another drawback for PotCoin is the fact that in the United States, credit card companies are relaxing their limitations. The federal government is not cracking down hard in the legalized states as was previously feared would happen. As more states, and hopefully, the federal government, sees how lucrative tax-wise legalization can become, this trend will probably continue. As such, PotCoin is not so much a necessity in the United States.
PotCoin Latest Update
In June of this year, PotCoin values soared 97% after the company funded Dennis Rodman’s trip to North Korea. The former basketball star has made several trips to the isolated nation, formerly funded by online betting firm Paddy Power back in 2013. Yet, again illustrating the volatility of the market, the very next day, the value sank 23% the day following the publicity the company received after announcing the sponsorship of Rodman’s trip.
Currently, PotCoin has a value of about $.08 with a market cap of $14,636,315.00. A total of 176,400,217 coins are on the market for trade.
Still being traded after 3 years and making inroads in Canada amid the nationwide legalization, it doesn’t appear that the cryptocurrency is going anywhere. Whether it will become the preferred method of purchasing and selling cannabis and other cannabis-related items remains to be seen. However, if it does become a primary currency in Canada in the cannabis industry, it might just have the foundation to become a worldwide currency in the industry.
ABOUT THE AUTHOR
Michael Jacobs is a marketing and creative content specialist at GotVape.com with a primary focus on customer satisfaction. Technology and fitness combined with healthy lifestyle obsession are his main talking points
Ballpark Holistic Dispensary
Get 20% Off Select Edibles!
Cannot be combined with other offers. Must show coupon. While supplies last. Other restrictions may apply.
Offer Expires 11-24-17
Check out our Daily Deals for more great offers on Medical and Recreational Marijuana!