Cannabis vs Bitcoin – A Similar Opportunity?

Remember a couple of years when Bitcoin was constantly in the news? Wall Street and individual opportunists could not stop raving on about the new encrypted currency and how some people are banking on it, making a fortune.

Bitcoin was supposed to be the next big thing, something that was expected to change the whole banking industry.


Did it? Well, not really!

But it did create vast opportunities for those who jumped on for the ride. Even huge large corporations invested in Bitcoin pouring money into something that seemed like an unstoppable bullet train.

The Cannabis industry at the time also tried to jump in on the action. Dispensaries that were dealing with ongoing banking problems or annoying payment providers, that were closing their doors to cannabis-money, gave Bitcoin’s payment options a chance.

What is Bitcoin?

Bitcoin is a form of digital currency, created and held electronically. No one controls it. Bitcoins aren’t printed, like dollars or euros – they’re produced by people and can be used to buy things electronically.

Did Bitcoin Become Mainstream?

While Bitcoin didn’t become mainstream, those who spotted the opportunity to invest in the coin, made quite a lot of money. You could even say a small fortune.

As you can see on the following chart, Bitcoin is now trading at an all-time high. Sure it had it’s ups and downs over the years, constantly being opposed by governments and of course the banking system. But despite ongoing pressure, it has still presented a solid return for those who bought low.

Does the Cannabis Industry Have the Same Potential?

That is a tough question to answer, and we are sure that if you ask 10 different people, you’ll probably get 10 different answers. But over here, at WayofLeaf, we think that the fun has just started.

On the one hand, there’s the Trump administration that has recently expressed concerns about the industry and is hinting towards further restrictions. On the other hand, millions of Dollars are pouring into the industry to capitalize on the green rush. Companies like Tuatara Capital, Seventh Point, Poseidon Asset Management, and Privateer Holdings have dived headfirst into the industry.

According to the fact book, forty-seven percent of active investors in the cannabis space plan on sinking $10 million or more into private cannabis companies in the next year. The fact book also added that while most of the money in the industry is still coming from family offices and people’s personal bank accounts, 18% of entrepreneurs who have started cannabis companies in the past year have landed funding from venture-capital and private-equity investors.

Similar to experienced investors, even new investors who decide to get into this industry need to understand that there’s a balance of risk and reward. In addition, it is important to understand what you are getting into before you rush out there and buy cannabis stocks. Don’t just assume that because marijuana is a hot topic, all marijuana stocks will perform well. Marijuana is still classed as a schedule 1 drug, which is creating many barriers for companies within the industry.

But with total sales expected to exceed $22 billion by the year 2020, it looks now as if it’s going to be unstoppable. This is certainly an exciting time to get involved in the cannabis space.

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