Several U.S. states, including Colorado and Washington, have legalized recreational marijuana use. Legalization has been a huge success, with interest growing continually. The election has only pushed legal pot further with California, Nevada and Massachusetts joining the party. The business does have a few problems, for which bitcoin may be the answer.
Also read: Colorado Cannabis Operations Begin Banking With Bitcoin
Legal, Yet Still Illegal Business
Even though individual states allow pot, it’s still an illegal drug — at least in the eyes of the Federal Government. As such, banking services remain unavailable to legal marijuana merchants. This means merchants usually work with cash only.
Thieves can easily steal cash, it’s bulky to carry, and it can even cause paranoia in merchants’ minds. Credit cards, deposits and checks aren’t an option for dispensaries, so these businesses have to spend money on CCTV, large safes. Some even choose bullet-proof glass – they can never be too safe.
Security expenses can add up and cut profitability, forcing these dispensaries to either find creative payment service solutions to solve their problems, or have a huge headache dealing with them.
Bitcoin May Have the Answers
As we all know, bitcoin is a decentralized digital currency that offers its users semi-anonymity and security. Transactions have an extremely low cost, and unless you get scammed or hacked, wallets are free and secure. Bitcoin’s nature makes it the perfect solution for these merchants. It isn’t bulky to carry, it’s not easy to steal, and it doesn’t need to be kept in an expensive safe.
Businesses can convert bitcoin into dollars or any other currency, with the help of one of the many available exchanges. They can then freely use cash without having to blow away their profit.
Some Still Hesitant to Adopt Bitcoin
Companies all over the world are hesitant to adopt bitcoin — even though some startups need it — for several reasons. One them is that digital currencies are often used to buy and sell illegal drugs and weapons. This, however, is the case with every type of currency in existence.
This hasn’t deterred a few cannabis entrepreneurs from giving digital currencies a shot. According to what one said to Forbes, it looks like bitcoin isn’t that popular among its customers, although it did give him a lot of press coverage.
As we’ve said before, bitcoin may be the answer to the industry’s banking problem, although there isn’t a consensus. Reportedly, cannabis entrepreneurs don’t seem to see digital currencies as the light at the end of the tunnel. so far, however, this hasn’t meant they won’t take bitcoin in exchange for their pot.
Do you think bitcoin is the solution the legal pot business needs? Should potheads and bitheads unite? Let us know in the comments.
Images courtesy of Pixabay
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