The cannabis industry presents opportunities for investors. Thanks to bitcoin, investors can capitalize on the growth of the sector like never before.
A clear understanding of the cannabis industry is essential. Once you know the ins and outs of the industry, it’s easy to see how bitcoin can be used to accelerate industry growth.
What you need to know about cannabis
Cannabis is one of the most consumed drugs in the world, according to the UN. People use cannabis for medical and recreational purposes. However, cannabis was illegal in the United States for much of the 20th century.
Meanwhile, US lawmakers worried about the risks and benefits of cannabis use. But over the years, cannabis has been shown to help people struggling with PTSD and other medical conditions. This has prompted many lawmakers to rethink their stance on cannabis.
Since 2012, cannabis has been legalized or decriminalized in 38 states and Washington, DC Gone are the days of dodgy black market transactions. As more states legalize marijuana, more and more licensed cannabis retailers are popping up in the United States, contribute to safer and healthier cannabis use at all levels. These retailers sell cannabis products and accessories. They are also looking for opportunities to distinguish themselves from their competitors and maximize their sales.
How Bitcoin Impacts The Cannabis Industry
Bitcoin can drive the growth of the cannabis industry. He 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 option to pay with bitcoins, a marijuana retailer can build relationships with their customers. Additionally, 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 purchase marijuana products and accessories using bitcoins for payment without the risk of chargebacks. The consumer can immediately pay a cannabis retailer and get a receipt. This inspires confidence in a cannabis retailer. This can help a retailer build long-term relationships with their customers.
2. Tax benefits
In 2019, activist group Blockchain Advocacy Coalition (BAC) sponsored a California cannabis and bitcoin bill. 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 is approved, legal California marijuana businesses can instantly submit bitcoin payments to cover their taxes. These businesses can track their bitcoin tax payments on a digital ledger to guard against future tax issues. Plus, if they follow the market closely, they can find ways to use bitcoin payments to save money on their taxes.
3. Brand awareness
Cannabis legalization is underway in the United States. Either way, legal cannabis retailers should consider every opportunity to promote their brands. These retailers can explore unique marketing opportunities. This way, they can launch marketing campaigns that generate wide consumer interest.
For example, a legal cannabis retailer may offer discounts to consumers who submit bitcoin payments. This allows the retailer to offer a distinct promotion that can grab consumers’ attention. At the same time, consumers can take advantage of the promotion to save on their cannabis purchases.
4. Investment Opportunities
Legal cannabis retailers need to assess short-term and long-term investment opportunities. These retailers may consider stocks, bonds and other traditional financial investments. At this stage, they can also evaluate bitcoin investments.
Some cryptocurrency experts are project the price of bitcoin upwards in 2022 and beyond. Legal cannabis retailers can buy bitcoin and add it to their investment portfolio. From there, these retailers track the results of bitcoin and their other investments. In the years to come, they may discover that bitcoin offers a significant return on investment.
How to Get Started with Bitcoin in the Cannabis Industry
Bitcoin can be purchased at any time. Still, it is important to understand bitcoin before investing and using it for financial growth in the cannabis industry.
A legal cannabis retailer can use bitcoin to support their day-to-day operations. To realize the full value of a bitcoin investment, the retailer must plan accordingly.
It helps to start small with bitcoin. A legal cannabis retailer can buy a small amount of bitcoin and gradually increase their investment.
Meanwhile, a legal cannabis retailer can also establish a bitcoin payment system and ensure that it is working properly. Then the retailer can educate consumers about the system and be prepared to address their concerns and questions about it. The retailer may also run promotions to entice consumers to pay for products and accessories in bitcoin.
The Basics 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 business.
This is a guest post by Frankie Wallace. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.