CBD and Cryptocurrency: A Match Made in Heaven?
When it comes to CBD and crypto, perception is everything. On the one hand, you have two supposedly shady products. On the other, you have two of the world’s most exciting and fastest-growing industries.
In truth, the ‘shady’ designation regarding cannabidiol relates to unscrupulous companies selling low-grade products. Items like CBD gummies are now widely purchased, with trusted firms earning a well-deserved positive reputation.
Of course, there are still poor-quality CBD products on the market due to the lack of regulation. A handful of states have implemented legislation to try and improve the quality of what’s on offer.
Like CBD, cryptocurrency’s level of regulation varies widely throughout the world. In many locations, it isn’t recognized as legal tender. However, in places such as Israel, Denmark, and Bulgaria, it is either taxed as an asset or subject to income tax. Like CBD, cryptocurrency has also finally made it to the mainstream despite the complaints of those in industries threatened by these twin rising tides.
Frightened Rivals Try to Fight Back Against CBD
In the 1930s, the DuPont family and William Randolph Hearst backed Harry Anslinger’s attempts to ban cannabis and hemp. The latter was considered a grave threat to nylon as clothing and wood to make paper.
Big Pharma uses similar tactics today to try and justify the ban on marijuana. The 2018 Farm Bill was a significant blow for opposition to CBD because it legalized hemp. While it didn’t permit cannabidiol, it paved the way for the market to grow. Most of the hemp grown in the United States is used to service the CBD industry.
Big Pharma is against hemp and cannabis. This is because the plants could possibly help manage the symptoms of various medical conditions. There is a growing body of evidence that suggests CBD is a useful alternative to opioids.
The global opioid industry makes around USD 22 billion per annum, and the United States makes up the lion’s share of it. At least 130 Americans die from an opioid overdose each day. In contrast, it seems as if CBD enjoys a good safety profile with a low risk of toxicity or overdose.
The likes of GW Pharmaceuticals have seen the danger and acted quickly. GW created a product called Epidiolex, which contains CBD. While the FDA has not approved CBD, it allows the use of Epidiolex!
Is Fiat Currency Under Threat?
CBD and crypto are certainly linked by their effect on ‘traditional’ entities. Those who earn their fortune from the existing capitalist society, and its reliance on paper money, continue to bash cryptocurrency at every opportunity. In May 2020, Goldman Sachs said that cryptocurrencies were not an asset class. One reason was that the likes of Bitcoin didn’t generate cash flow like bonds. However, crypto enthusiasts pointed out that the CFTC declared Bitcoin as a commodity in 2015. Therefore, it is technically an asset with a price set by demand and supply, like gold or oil.
The CEO of J.P. Morgan, Jamie Dimon, said that Bitcoin was a fraud. Goldman also referred to cryptocurrencies as a “conduit for illicit activity.” However, the total market cap of cryptocurrency is well in excess of USD 300 billion at the time of writing.
It is hardly a shock that large banks are speaking out against crypto. After all, recent history has shown that the current economic system is weighted in favor of those who are already wealthy.
Also, several banks have lost extraordinary amounts of money after their poorly-executed gambles failed miserably. One thing that crypto has in its favor is that it won’t cost the taxpayer a fortune. Goldman Sachs received a USD 10 billion bailout from the U.S. Department of Treasury after its part in the subprime mortgage scandal. J.P. Morgan received USD 25 billion.
CBD & Crypto – Joined Together Through Unconventionality, But You Shouldn’t Buy One with the Other
The cost of CBD is falling significantly, and customers now have access to high-quality products from companies like PureKana. However, it is probably unwise to purchase a bottle of the brand’s much-loved CBD oil with crypto.
There are a handful of retailers that allow consumers to buy CBD products with crypto. We have heard of some that have incentive programs to encourage buyers to spend Bitcoin. Such organizations are betting that Bitcoin returns to its previous peak of almost USD 20,000.
However, the entire cryptocurrency market followed stocks in a massive crash during the beginning of the COVID 19 crisis. It remains too volatile even to consider using in the same way of fiat currency. Imagine spending USD 100 on crypto to buy CBD oil, only to find out that it is worth the equivalent of USD 500 only six months later!
The main commonalities of CBD and crypto are that they remain threats to conventional rivals and are both rapidly growing markets. However, CBD is far more stable.
***
DISCLAIMER
The views, the opinions and the positions expressed in this article are those of the author alone and do not necessarily represent those of https://www.cryptowisser.com/ or any company or individual affiliated with https://www.cryptowisser.com/. We do not guarantee the accuracy, completeness or validity of any statements madewithin this article. We accept no liability for any errors, omissions or representations. The copyright of this content belongs to the author. Any liability with regards to infringement of intellectual property rights also remains with them.