Bitcoin, the buffer that serves to satisfy lovers of legal marijuana
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Is the fake currency giant helping to facilitate the financial growth of an unorthodox business entity?
2009 marked the birth of a brand new entity in the ‘Tech Age’. Bitcoin, a company that works as a pseudo-bank, turns real money into fake currency. The company functions as a buffer of sorts between the buyer and the seller of any product. The purpose of any transaction? To provide a safe, legal and convenient purchase and sale between (in the context of this article) the marijuana seller and the marijuana buyer.
Bitcoin, one of the fastest growing new companies around (as evidenced by stock market prices), which may well coincide with the likely progression of the pot business. Cowen & Co. predict a $50 billion stream by 2026, compared to $6 billion now.
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The process of making a Bitcoin transaction involves consumers utilising ‘POSaBIT’ machines (found in most drug shops) with their credit cards (it would of course be an option to pay directly or with cash, however Bitcoin offers a more secure option of doing business). To thwart instances of fraud/money laundering, single use Bitcoin spending is capped at $150.
With pot being illegal for medicinal use in roughly 20 of the 50 states in America (as reported by Bloomberg), it’s clear that widespread usage of Bitcoin in the drugs trade across the country is significantly limited. Consumers who desire to purchase without the need to visit a drugs store to convert their cash to digital currency should be encouraged by the comments of Jeffrey Zucker, president of Green Lion Partners, “The banking issues are going to be solved in such time that the people in this industry are going to gravitate toward traditional banking.”
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