Cannabis Cryptocurrency Review: POTcoin
POTcoin is a decentralized cryptocurrency payment and banking solution for the legal marijuana industry released on January 21, 2014 at 4:20pm. Based on proof-of-stake, the network bills itself as a secure, scalable, cost-saving financial infrastructure for legal cannabis businesses.
If you happened to see the news a few weeks ago you probably remember POTcoin as the group that a swagged-out Dennis Rodman back to North Korea to promote the currency, causing the currency to skyrocket to a 97% increase.
I have pretty close ties to the cannabis industry and I know that one of the largest hurdles facing legal cannabis businesses in the U.S. happens to be banking and payment processing because no bank with federal oversight can touch their money without breaking the law.
Not only does this create problems storing the large amounts of cash accrued by these businesses; most businesses still can’t accept credit or debit cards. This creates a world of opportunity for digital currencies, whether we’re talking about dispensaries accepting cryptocurrency payments or using cryptocurrency to facilitate transactions.
POTcoin hit an all-time-high at nearly $0.19 at the beginning of June and is down to $0.11 in the midst of the current correction but it’s difficult to imagine U.S. laws on cannabis to significantly change at the federal level in the next five years if not longer and so long as states have to deal with cannabis in their own experimental ways I see plenty of room for multiple cannabis coins to establish payment processing and banking services within various jurisdictions as more and more legal cannabis businesses enter the market. Colorado has seen resounding success in terms of cannabis sales and legalization will continue to reveal how much the authorities have underestimated the global cannabis market.
POTcoin’s got a great looking website with very useful information for getting startedwhether you’re just looking for a wallet or a merchant looking to accept potcoin. Have you tried POTcoin before? Please share your experience in a comment below!
This is the first in a five part series on cannabis-themed cryptocurrencies. Stay tuned tomorrow when we’ll be talking about DopeCoin!