Cryptocurrency & CBD – What’s the Connection?
It seems as if the Internet of Things is the world’s fastest-growing industry. However, CBD and crypto are arguably next on the list. The CBD industry is already worth billions, and will likely hit the USD 20 billion mark by 2024. The best CBD products continue to fly off the shelves at record rates.
Meanwhile, the total market cap of all cryptocurrencies is well over USD 300 billion. However, it is such a volatile market that billions are added or lost in a matter of days, sometimes faster. Bitcoin is by far the largest cryptocurrency and is responsible for around half of the market’s value.
If you only have limited knowledge of either market, you probably see little or no relationship between CBD and crypto. However, delve deeper, and you will see a more profound connection as both are capable of helping the other.
Is Crypto a Solution to the CBD Market’s Banking Woes?
The 2018 Farm Bill legalized the growth of industrial hemp, which is primarily used in the CBD industry. However, cannabidiol itself is not federally approved. The problems faced in finding a banking solution are well-known in the marijuana industry. As it happens, the CBD market only fares slightly better.
Even though it is tolerated in more states than cannabis, CBD is still not federally legal. Companies in the sphere are still regarded as marijuana-related enterprises by many banks, even though there is now a clearly defined difference between hemp and cannabis. While some financial institutions permit CBD brands to have secure bank accounts, others don’t.
However, CBD companies can get customers to pay in a cryptocurrency such as Bitcoin. Already, we have seen collaborations between CBD and crypto firms to make this vision a reality.
Swissx has created several Banks of Cannabis around the world, including its California addition in August 2020. Alikiviades David, a billionaire, launched it in 2019 to facilitate legal marijuana transactions worldwide. It is backed by a bank of proprietary hemp seeds worth an estimated USD 750 million!
The Swissx Bank of Cannabis also operates a cryptocurrency called SWX Coin, which is based on Bitcoin’s blockchain. David has also added USD 250 million in Swiss Francs pegged to hemp’s global price! Swissx CBD products already enjoy a healthy reputation, with endorsements from the likes of Mike Tyson and Snoop Dogg.
The main issue is the continuing volatility of the market. Not many people want to risk paying in Bitcoin in the knowledge that it could be worth double its current price a year from now.
A Union of Outcasts
This is perhaps the most obvious link between crypto and CBD. Even today, both are still viewed with suspicion by the ‘establishment,’ although the cannabidiol market is becoming more mainstream. Even Bitcoin has finally gained a small modicum of respect amongst some investors, though it remains an outsider.
Both industries continue to try and prove doubters wrong and act as rainbow-clad renegades in a world of beige. As it happens, those who work in crypto often suffer from immense levels of stress and anxiety. A growing number are beginning to use CBD to help manage their symptoms.
Innovation
Given the issues both markets face, CBD and crypto have become creative to create connections.
The dynamic duo is trying to alter the ways we invest and trade in commodities. One cryptocurrency, called Cannabium, does something pretty cool when you purchase it. Cannabium triggers the production of cannabidiol, thus helping fund jobs and provisions for hemp farmers.
The investor receives CHIT tokens on the Ethereum/U.S. Dollar exchange rate. When the cannabidiol is sold, the Cannabium purchaser receives cash. This is an extremely ambitious plan, and we wonder if it can possibly succeed.
Final Thoughts on the Connection Between CBD and Crypto Currencies
Investors in CBD now have a method of investing in the market. The ability of blockchain crypto platforms to offer security and privacy is a huge benefit at a time where federal regulations still impact CBD. This process ensures that entrepreneurship could potentially continue to grow in both industries. Overall, CBD and crypto work exceptionally well together. They could help one another grow and flourish for the foreseeable future. You can learn more about both on the official WayofLeaf website.
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