Cryptocurrency

Can crypto disrupt the CBD oil industry?

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It is now the year 2020. We have officially entered the future. So many things that are going on nowadays were the hallmarks of science fiction just a few decades ago. Two of the most futuristic trends in 2020 are cryptocurrency and CBD oil. One is a completely digital form of currency and the other is an oil extracted from Cannabis that harness the amazing healing power of the plant. Individually, these two separate entities are in their early days and the potential of both has yet to be harnessed. However, they are both disruptive forces in numerous industries. So, do these two forces complement each other? Or, is one bad for the other? Here we will try and answer the questions, can crypto disrupt the CBD oil industry?    

CBD oil industry vs. crypto

As we stand in 2020, the CBD oil industry is slightly more developed and more mainstream than the cryptocurrency market. The last few years have seen either all cannabis-based products or at least hemp-derived CBD oil legalized throughout North American and Europe. This has led to an explosion of CBD brands and companies as CBD oil is now hitting the virtual shelves and the physical ones at traditional retailers ever. To get an idea of how many different companies there are, check out this Cool Things Chicago article which ranks just a small sliver of the best CBD oils on the market. 

In comparison, while there is also a lot of money to be made on speculative investments in the crypto market, it has not yet gained the mainstream acceptance that CBD oil has. The most famous cryptocurrency, Bitcoin, has made strides towards more mainstream acceptance and is being accepted at more places all the time. Until it is used on a larger scale though – which does seem like it is coming – the industry will still be somewhat niche. 

What CBD and crypto have in common

While both these budding markets are new, innovative, and somewhat unknown to many, what they really share is that they are disrupting long-standing institutions who have lost the trust of the general public. CBD, in many ways, is a direct response to the pharmaceutical industry. For years, Big Pharma has worked to keep marijuana and cannabis-derived products illegal. This is because they saw (and still see) these products as a threat to their business. These products are an all-natural, non-addictive, little to no side effect alternative to the drugs that make Big Pharma billions of dollars. As the population begins to see through Big Pharma talking points, CBD oil and other products, such as the ones in this CBDKyro piece, gain momentum. 

Similarly, the rise of cryptocurrencies is related to the failures and growing mistrust both of governments and banks. This decentralized form of currency allows for quick, private, secure transactions that cost much less than traditional ones because the financial institutions are not all taking their cut. They also cannot be manipulated by governments for political gain like traditional currency. 

Why CBD and cryptocurrency are a great pairing

As both of these disruptors try to grow from niche product to a full-blown global phenomenon, each faces their own challenges. One of the biggest challenges in the CBD industry is that both the legal status and their status as medicinal products exist in a gray area in many places throughout the world. Because of this, many CBD companies are finding it hard to get financing and merchant services from big-name, established sources. 

This is where CBD and crypto are made for each other. Being a new thing of its own, cryptocurrencies have embraced CBD and other cannabis-related companies and have given these companies the resources they need to accept payments and get financing. Using cryptocurrency also allows many of these start-up companies to avoid many of the banking fees and some of the taxes associated with traditional currencies. 

Most common types of cryptocurrency in the CBD space 

There are currently more than 2,000 forms of cryptocurrencies out there today. Some have real legs and staying power for the future while others are more of a flash in the pan. In the CBD oil industry, there are a few cryptocurrencies that you will see pop up over and over again. Here are the biggest ones for CBD: 

PotCoin

This is a Canadian cryptocurrency that has been around since 2014. As the name suggests, it was created specifically to help cannabis-related businesses start their companies. Back when it was introduced, less than 300 banks in the U.S. would even let cannabis-related companies open accounts. This form of crypto aimed to solve that. It is still the crypto most associated with CBD and has experienced an explosion along with CBD’s success. 

ParagonCoin (PRG)

Three years after PotCoin, Paragon came along to take crypto for cannabis companies to the next level. Their goal is aimed at “organizing, systematizing, and creating easily verifiable and transparent cannabis industry solutions.” They work seamlessly with CBD companies’ supply chain to help maximize their effect at all levels of the CBD producing process. 

Litecoin and Bitcoin 

While these are not cannabis-based crypto, they are still a very popular choice with companies in the industry. Both these cryptocurrencies were early to the CBD party and have allowed CBD companies to manage their finances and accept payments from the beginning, even when CBD was less legal than it is now. In the last 3 years, the amount of CBD companies using and accepting these two currencies has increased dramatically. While Bitcoin is number one by far because of its popularity and liquidity, Litecoin has plenty of fans as well because of its lower fees. 

Conclusion 

The answer to the question, can crypto disrupt the CBD oil industry is slightly more complex than just “yes” or “no”. This is because while crypto will continue to disrupt every industry it interacts with as it gains widespread acceptance, it will “disrupt” the CBD oil industry less than any other because they have already been working in harmony for years. Instead of disrupting each other, it is more apt to say that these two disruptors will continue to complement each other and grow together as each becomes more and more popular in the 2020s.

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