The cannabis industry presents opportunities for investors. Thanks to bitcoin, investors can capitalize on the growth of the industry like never before.
It is imperative to have a clear understanding of the cannabis industry. Once you know the details 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 had concerns about the risks and benefits of cannabis use. But over the years, cannabis has been shown to help people who are struggling PTSD and other medical conditions. This has led many lawmakers to rethink 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 U.S. contributing to a safer and healthier cannabis use across the board. These retailers sell cannabis products and accessories. They also look for opportunities to differentiate themselves from competitors and maximize their sales.
How Bitcoin Affects the Cannabis Industry
Bitcoin can fuel the growth of the cannabis industry. You 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 generating conversions. By offering customers the ability to pay with bitcoin, a marijuana retailer can build a relationship with its customers. In addition, the retailer can help customers feel secure in their transactions without the oversight of a traditional verifier.
Cannabis retailers can use bitcoin to secure their transactions like never before. For example, a consumer can buy marijuana products and accessories using bitcoins to pay without the risk of chargebacks. The consumer can immediately pay a cannabis retailer and get a receipt. This instills confidence in a cannabis retailer. It can help a retailer foster long-term relationships with customers.
2. Tax benefits
In 2019, the activist group Blockchain Advocacy Coalition (BAC) sponsored a California bill related to cannabis and bitcoin. The bill would allow legal cannabis businesses in California to use bitcoin and other cryptocurrencies to pay their taxes.
To date, this bill remains under discussion. If the bill passes, legal marijuana companies in California can instantly send bitcoin payments to cover their taxes. These companies can track their bitcoin tax payments in a digital ledger to protect themselves from future tax issues. Also, if they monitor the market closely, they can find ways to use bitcoin payments to save money on their taxes.
3. Knowledge of the brand
Cannabis legalization is underway in the United States. Regardless, legal cannabis retailers must consider every opportunity to promote their brands. These retailers can explore unique marketing opportunities. In this way, they can launch marketing campaigns that generate widespread consumer interest.
For example, a legal cannabis retailer may offer discounts to consumers who send payments in bitcoin. This allows the retailer to offer a different promotion that can attract consumers’ attention. At the same time, consumers can take advantage of the promotion to save money on their cannabis purchases.
4. Investment opportunities
Legal cannabis retailers need to evaluate short- and long-term investment opportunities. These retailers may consider stocks, bonds and other traditional financial investments. At this point, they can also evaluate bitcoin investments.
Some cryptocurrency experts are projecting the rise in the price of bitcoin in 2022 and beyond. Legal cannabis retailers can buy bitcoins and add them to their investment portfolio. From there, these retailers track the results of bitcoin and their other investments. In the coming years, they may find that bitcoin offers a significant return on investment.
How to get started with Bitcoin in the cannabis industry
Bitcoin can be bought 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 retailer can use bitcoins to support their day-to-day operations. To realize the full value of a bitcoin investment, the retailer must plan accordingly.
Help start small with bitcoin. A legal cannabis retailer can buy a small amount of bitcoin and gradually increase their investment in it.
Meanwhile, a legal cannabis retailer can also set up a system for bitcoin payments and make sure it works properly. The retailer can then teach consumers about the system and be prepared to answer their concerns and questions about it. The retailer may also launch promotions to encourage consumers to pay for products and accessories with bitcoin.
The conclusion of Bitcoin and the cannabis industry
Bitcoin can have far-reaching effects on the cannabis industry. Legal cannabis retailers can get started with bitcoin today. By doing so, they may quickly discover that bitcoin can help them grow their businesses.
This is a guest post by Frankie Wallace. The opinions expressed are entirely my own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.