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As the cannabis industry is now one of the fastest-growing ones in the U.S, cryptocurrencies that are exclusively made for dispensaries to transact business make their entrance into the market.
The Cannabis industry boasts a predicted growth rate of 21% over the next three years and had a cumulative growth rate of 110% while providing over 250,000 direct jobs in the process and many affiliated jobs opened up as a result of this. The jobs provided are estimated to hit 330,000 in the next couple of years. A whopping $16 billion was made in total sales across the U.S. last year.
It must be noted that central to these figures is an important component which is the dispensary. A dispensary is a licensed store where patients can buy marijuana. Or in other cases recreational stores, this is when the state in question has legalized the use of recreational marijuana. As lucrative as the industry is, it must be said that it is quite expensive to start a cannabis business as the average price required to run a dispensary is about $750,000. This includes state licenses as well as setting up the store.
If you frequently visit a dispensary, one thing you might have observed is that most transactions take place with cash as the only means of payment. This is because the U.S. federal government still classifies cannabis as a schedule 1 drug hence earning the illegal status. This stance has made it difficult for financial institutions to do business in the cannabis industry, as they also feel it is a no go area.
Sometimes handling cash can be a little cumbersome and you feel that for safety and accountability reasons there ought to be better means of transacting business with the less use of physical cash. And sure there is, cryptocurrency! Cryptocurrency is fast becoming an acceptable means of exchange. Cryptocurrency’s use of blockchain technology also readily substitutes for the banks. As it offers a safe, secure, and accessible alternative. In this article, we would highlight the reasons why cannabis dispensaries need cryptocurrency.
The 21st century has been earmarked by rapid changes especially in the way things are done. The world is moving from a paper and pencil age into a more digital one where access to information is at the push of a button and results are gotten instantly as compared to when you had to write letters to access similar information. The internet has indeed made the world a global village.
The global economy as well is following this trend, investment and financial transactions are now done online as everyone is looking to save time. A digital payment system attuned to this change is the cryptocurrency. With cryptocurrency, you can make purchases on the go as it is a digital means of exchange that enables people to carry out financial transactions. This is why dispensaries should cryptocurrency. It is the new form of currency that is taking the world by storm and allows smooth transactions.
Safety and Security
Cryptocurrency is one of the safest and secure means of doing business as with it you don’t have to worry about your funds being stolen or going missing thus accruing unnecessary debts. The blockchain technology in use by cryptocurrency records all transactions in a public ledger accessible to everyone. It is a growing inventory of records that is decentralized and transparent for everyone to see.
This decentralization is one of the biggest advantages of cryptocurrencies. Compared to banks that have a regulatory body that makes rules that no one can change. It is different from crypto. All identities of owners are encrypted to ensure that records are efficiently kept. This decentralization also means you own the coins and the government or bank has no right over it.
The blockchain technology that powers cryptocurrency gives them the edge over banks and other financial institutions. Once you have got an internet connection and a device you effectively become your own bank. This type of advantage is needed by the dispensaries to facilitate smooth operations.
This even aids the dispensaries in serving their customers better. They can engage in deliveries, open e-commerce stores where customers buy what they want and pay with their mobile wallet to that of the dispensaries. This way they can reach a larger number of patients.
Customization and Exclusivity
It even gets better as there are now cannabis cryptocurrencies exclusively made for dispensaries to transact business. Some of the cannacryptos include potcoin, dopecoin, cannabis coin among others. These coins look to provide a safe and secure way of doing business for dispensaries.
Most at no extra cost and fast transaction speeds. Dopecoin, for instance, uses a proof of stake system where users earn 5% on their annual investments. Cannabis coin even goes a step further by directly converting cryptos to cannabis. Where 1 coin is equal to 1 gram of cannabis. Courtesy its unique system CaNNdy. Why would any dispensary not want such exclusivity and class?
The benefits of using cryptocurrency in a local dispensary business are unlimited and the possibilities endless. Such a partnership could sure give the cannabis industry a comparative advantage over other industries that use traditional financial institutions.