The cannabis industry offers opportunities for investors. Thanks to bitcoin, investors can capitalize on the growth of the sector like never before.
A clear understanding of the cannabis industry is a must. Once you know the ins and outs of the industry, it’s easy to see how bitcoin can be used to accelerate the growth of the industry.
What you need to know about cannabis
Cannabis is one of the most used drugs in the world, according to the United Nations. People use cannabis for medical and recreational purposes. However, cannabis was illegal in the United States for much of the 20th century.
During this time, US lawmakers were concerned about the risks and benefits of using cannabis. But over the years, cannabis has been shown to help people coping with post-traumatic stress disorder and other medical conditions. This has prompted many lawmakers to reconsider their stance on cannabis.
Since 2012, marijuana has been legalized or decriminalized in 38 states and Washington, DC Gone are the days of shady black market deals. As more states legalize marijuana, more licensed cannabis retailers are popping up in the United States, contributing to safer and healthier cannabis use across the board. These retailers sell cannabis-based products and accessories. They are also looking for opportunities to stand out from the competition and maximize sales.
How Bitcoin Affects the Cannabis Industry
Bitcoin can drive the growth of the cannabis industry. It can do this in several ways:
1. Secure transactions
Bitcoin can play a key role in a cannabis retailer’s e-commerce strategy. In any e-commerce business, establishing consumer trust is essential for making sales and increasing conversions. By offering customers the option to pay with bitcoins, a marijuana dealer can build a relationship with their customers. Additionally, the retailer can help customers feel confident in their transactions without the supervision of a traditional verifier.
Cannabis retailers can use bitcoins to secure their transactions like never before. For example, a consumer can purchase marijuana-based products and accessories using bitcoins for payment without the risk of chargebacks. The consumer can pay a cannabis dealer immediately and get a receipt. This instills confidence in a cannabis dealer. It can help a retailer foster long-term customer relationships.
2. Tax benefits
In 2019, the Blockchain Advocacy Coalition (BAC) activist group sponsored a California bill related to cannabis and bitcoin. The bill would allow legal cannabis companies in California to use bitcoin and other cryptocurrencies to pay taxes.
To date, this bill remains under discussion. If the bill is passed, legal marijuana companies in California can immediately send bitcoin payments to cover taxes. These companies can track bitcoin tax payments on a digital ledger to protect themselves from future tax problems. Also, if they follow the market closely, they may find ways to use bitcoin payments to save on taxes.
3. Brand awareness
Legalization of cannabis is underway in the United States. Regardless, legal cannabis dealers need to consider every opportunity to promote their brands. These resellers can explore unique marketing opportunities. In this way, they can launch marketing campaigns that generate widespread consumer interest.
For example, a legal cannabis dealer may offer discounts to consumers who send payments in bitcoins. This allows the retailer to offer a distinct promotion that can grab the attention of consumers. At the same time, consumers can take advantage of the promotion to save on their cannabis purchases.
4. Investment Opportunities
Legal cannabis dealers need to consider short- and long-term investment opportunities. These resellers may consider stocks, bonds, and other traditional financial investments. At this point, they can also evaluate bitcoin investments.
Some cryptocurrency experts predict that the price of bitcoin will rise in 2022 and beyond. Legal cannabis dealers can buy bitcoins and add it to their investment portfolio. From here, these retailers track bitcoin’s results and their other investments. In the years to come, they may find that bitcoin offers a significant return on investment.
How to get started with Bitcoin in the cannabis industry
Bitcoin can be purchased at any time. However, it is important to understand bitcoin before investing and using it for financial growth in the cannabis industry.
A legal cannabis dealer can use bitcoins to support their daily operations. To realize the full value of a bitcoin investment, the retailer must plan accordingly.
It helps to start small with bitcoin. A legal cannabis dealer can buy a small amount of bitcoin and gradually increase their investment in it.
Meanwhile, a legal cannabis dealer can also establish a system for bitcoin payments and make sure it works properly. Subsequently, the retailer can educate consumers about the system and be ready to answer their concerns and questions about it. The retailer can also run promotions to encourage consumers to pay for products and accessories with bitcoins.
The bottom line about Bitcoin and the cannabis industry
Bitcoin could have far-reaching effects on the cannabis industry. Legal cannabis dealers can get started with bitcoin today. In doing so, they may quickly discover that bitcoin can help them grow their businesses.
This is a guest post by Frankie Wallace. The views expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.