Bitcoin Finance Growth Cannabis Industry – Bitcoin Magazine
Image source: Pexels
The cannabis industry offers opportunities for investors. Thanks to bitcoin, investors can capitalize on the sector’s growth like never before.
A clear understanding of the cannabis industry is a must. Once you know the ins and outs of the sector, it’s easy to see how bitcoin can be used to accelerate the sector’s growth.
What you need to know about cannabis
Cannabis is one of the most used drugs in the world, according to the UN. People use cannabis for medicinal and recreational purposes. However, cannabis was illegal in the United States for much of the 20th century.
During this time, American lawmakers had concerns about the risks and benefits of using cannabis. But over the years, cannabis has been shown to help people who have PTSD and other medical conditions. This has caused many legislators to reconsider 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 dealers are popping up across the US, contributing to safer and healthier cannabis use across the board. These retailers sell cannabis products and accessories. They also look for opportunities to differentiate themselves from the competition and maximize sales.
How Bitcoin Affects the Cannabis Industry
Bitcoin can drive the growth of the cannabis industry. This can be done 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 to achieving sales and generating conversions. By offering customers the option to pay with bitcoin, a marijuana dealer can build rapport with its customers. The retailer can also help customers feel secure in their transactions without the supervision of a traditional verifier.
Cannabis dealers can use bitcoin to secure their transactions like never before. For example, a consumer can purchase marijuana products and accessories using bitcoin for payment without the risk of chargebacks. The consumer can immediately pay a cannabis dealer and receive a receipt. This creates trust in a cannabis dealer. 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 bill in California related to cannabis and bitcoin. The bill would allow legal cannabis businesses in California to use bitcoin and other cryptocurrencies to pay taxes.
To date, this bill is still under discussion. If the bill passes, legal marijuana businesses in California can immediately submit bitcoin payments to cover their taxes. These businesses can track their bitcoin tax payments on a digital ledger to protect themselves from future tax issues. Additionally, if they follow the market closely, they can find ways to use bitcoin payments to save money on taxes.
3. Brand awareness
Cannabis legalization is underway across the United States. Regardless, legal cannabis retailers must consider every opportunity to promote their brands. These retailers can explore unique marketing opportunities. That way, they can launch marketing campaigns that generate broad interest from consumers.
For example, a legal cannabis retailer may offer discounts to consumers who submit bitcoin payments. This allows the retailer to offer a distinct campaign that can attract consumers’ attention. At the same time, consumers can make use of the campaign to save money on their cannabis purchases.
4. Investment opportunities
Legal cannabis dealers must consider short- and long-term investment opportunities. These dealers may consider stocks, bonds and other traditional financial investments. At this point, they can also consider bitcoin investments.
Some cryptocurrency experts predict that the price of bitcoin will rise in 2022 and beyond. Legal cannabis dealers can buy bitcoin and add it to their investment portfolio. From here, these traders track the performance of bitcoin and their other investments. In the years to come, they may find that bitcoin provides a significant return on investment.
How to get started with Bitcoin in the cannabis industry
Bitcoin can be bought at any time. Nevertheless, it is important to understand bitcoin before investing and using it for financial growth in the cannabis industry.
A legal cannabis dealer can use bitcoin to support day-to-day operations. To realize the full value of a bitcoin investment, the trader must plan accordingly.
It helps to start small with bitcoin. A legal cannabis dealer can buy a small amount of bitcoin and gradually increase their investment in it.
Meanwhile, a legal cannabis dealer can also establish a system for bitcoin payments and ensure that it works properly. Then the dealer can educate consumers about the system and be ready 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 bottom line on Bitcoin and the cannabis industry
Bitcoin could have far-reaching effects on the cannabis industry. Legal cannabis dealers can get started with bitcoin today. By doing so, they can quickly discover that bitcoin can help them grow their business.
This is a guest post by Frankie Wallace. Opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.
