What is PotCoin?

By
Spencer Grey
-
pot leaf on coins
underworld/Shutterstock
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Cryptocurrencies are confusing. If you've been ignoring the firestorm of opinion and speculation on cryptos like Bitcoin and Ethereum, we don't blame you. But if you're involved in the legal marijuana industry, you may want to perk up and pay attention PotCoin. This altcoin has a clearer mission than most: to make transactions in the legal weed space easy and quick. To help round out your understanding of PotCoin, we're going to fill you in on what it is, how it differs from Bitcoin, and how you can get in on it.  

What Is PotCoin For? 

Put simply, PotCoin is banking for the cannabis industry. As the United States' federal policy on marijuana keeps it staunchly illegal, most banks simply won't do business with dispensaries, producers, and other legal weed business entities. The one thing that made some banks take an exception to this rule was the Cole Memo.  

The Cole Memo was an Obama-era piece of guidance that told prosecutors in legal weed states to focus their resources on other issues and not waste them on pursuing cases against legitimate businesspeople in the cannabis industry. With that in place, a few banks felt comfortable enough to dip a toe into banking for legal cannabis, but now that Jeff Sessions has rescinded the memo, everything is up in the air.  

What Can I Do with PotCoin? 

Pretty much anything an app-maker can imagine. PotCoin is a totally decentralized organization, which allows you to transfer money (in the form of PotCoins) from one individual to another. There are no banks involved, and you can buy anything with PotCoins as long as it's for sale. 

The idea is to skip the cumbersome step of the banking system while providing a secure transaction method by taking cash out of the equation. According to its mission statement, PotCoin aims to be "the digital currency that allows cannabis enthusiasts to interact, transact, communicate, and grow together."  

To use PotCoin, you simply need to sign up for a wallet and deposit money into it. You can do this by downloading PotWallet or a wallet that works on your desktop and earns interest on all your PotCoins.  

How Is PotCoin Different Than Bitcoin? 

PotCoin was developed as a fork of Litecoin-QT. However, it has some advantages that make it worth a look, including:  

  • Shorter block generation time 
  • A quicker halving schedule 
  • A higher maximum number of coins 

The idea behind this is to reward you for both owning and holding the coins, as well as making transactions less prohibitively expensive.  

Should I Buy PotCoin? 

gold pot coin
gladder/Shutterstock
First off: we're not here to give investment advice, and nothing said in this article should be taken as such. Second: it depends on the future of legalization. PotCoin has been around since 2014, and those who are invested in it for the long haul believe that the federal government isn't going to change its stance anytime soon. If that's true, this altcoin may find its niche as the quickest, most discreet way to conduct transactions in the legal weed space. If things do change, however, PotCoin will have to work hard to successfully market its advantages of anonymity, security, and speed.    


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