Buying marijuana at your favorite dispensary or retailer has become a bit less expensive thanks to the use of so-called Cryptocurrency. Specifically, the introduction of a digital currency called CannabisCoin is targeted directly at the marijuana user. It is designed and intended to be used for purchasing your smoke from registered locations while saving you money in the process.
What is CannabisCoin?
The CannabisCoin is somewhat like the popular Bitcoin but is a little different because it is created using consumer-grade hardware and is the only X11 coin that is exclusively designed for the purchase of cannabis. Developers have been working diligently to help shine more light on the benefits of using cryptocurrencies for cannabis transactions. Essentially, the acceptance of the CannabisCoin is a way to market, promote and offer a discounted product to loyal customers.
YES WE CANN
Through a movement entitled “YES WE CANN” marijuana dispensaries who take part will be able to offer marijuana at drastically reduced prices if they accept the CannabisCoin. The shop owner would be required to set aside a predetermined supply of quality herb which is referred to as “CANNdy.” Consumers will be able to buy 1 gram of pot for 1 CannabisCoin. Dispensary owners will likely place some restrictions on how much can be purchased at a time or offer the deals as supplies last. The CannabisCoin will be accepted as full payment for the product.
The strain called CANNdy is grown to be used specifically with the CannabisCoin purchases. The coin and the YES WE CANN events were developed by those in the industry like growers, professionals and the users themselves; it was created by the community for the community. The events are held by dispensaries in California and Nevada and will be launching in Colorado. These events are typically hosted by well-heeled sponsors.
History and Value of the CannabisCoin
The CannabisCoin was officially introduced in October 2014 and is redeemable at participating shops in states where weed is legal. They are perfect for promotional and reward programs. The program continues to face hurdles with implementing the point of sale process because of regulatory hoops in the various states as they each have their own laws regarding the tracking and management of cannabis. CannabisCoin has increased awareness in the cryptocurrency world but it has a long way to go before it is universally recognized.
As it relates to the value of the CannabisCoin, the coin ranges from $10 to $20. It is based on the Bitcoin protocol and is backed by a physical product (i.e. the cannabis itself). This makes it a lot more stable than other forms of cryptocurrency. It comes with a Cannabis Coin Wallet that can be used as a cross platform ad installed on your computer using Windows, Android and Mac operating systems.
Here’s How It Works
If you are interested in using digital currency you can “mine” for it just like you would with Bitcoin. The mining process involves validating digital currency transactions in order to provide a level of security for the ledger. The ledger of past deals is referred to as a block chain. The block chain notifies the entire network of the transaction.
Suppliers and growers that take part in the YES WE CANN effort collectively agreed to “peg” the price of the CannabisCoin to a gram of pot. This allows the buyer to purchase herb at a significantly reduced cost than if they used a credit card or cash. Pegging is when you back up the currency with the actual product, as a sort of guarantee. If the price of the CannabisCoin does not rise, buyers can buy their weed for less than what it costs to produce. On the other hand, if the price of the CannabisCoin becomes inflated, customers will lose the motivation to make their purchases with the coin.
Alternatives to CannabisCoin
The CannabisCoin is not the only cryptocurrency. However, it is the only one designed especially for the cannabis user. Potcoin is also in the market and making an effort to become a substantial player. The federal government has approved the use of Bitcoin payment processing at weed dispensaries. The caveat here is that in some cases the Bitcoin payment processors have caused some operations to close down.
The CannabisCoin, unlike others, has a fixed rate and is attached to the cost of the product. It is targeted to a single niche as the payment method for dispensaries, merchants, and retailers. Industry experts advise us to keep our eye on CannabisCoin as a leader among altcoins.
Will It Last?
In the end, the CannabisCoin is not too different from other cannabis-based currency. It has been gaining in popularity and is an alternative to Bitcoins. However, CannabisCoins can be exchanged for Bitcoins, actual dollars, and other forms of capital. Due to its increasing rates, you may find it useful in saving money in the long term.
Article By: Alfonzo Porter