Cryptocurrency & CBD: What’s the Connection?
There are perhaps no two industries that have grown so rapidly in recent years than those of cryptocurrency and cannabidiol oil (CBD). Recent innovation and new regulations have created marketplaces in which these products can thrive. But is their recent growth the only place these two industries overlap?
In fact, the connection between these two industries runs much deeper. The nature of both cryptocurrency and CBD creates an environment that uniquely pairs them together in highly secure investment opportunities that are growing every day.
Enterprising investors getting involved in both cryptocurrency and CBD stand to make a large profit and a hefty return on investment (ROI). Here’s what you should know.
Exploding Industries
Cryptocurrency and cannabis are two of the most prominent and quickly growing commodities of the last few years.
The market value for the CBD industry is expected to reach $57 billion by 2027. Meanwhile, the cryptocurrency market is worth about $267 billion. Considering that both industries were only fractions of the value they are now a few years ago, it isn’t much of a stretch to connect the two through their meteoric rise.
CBD has jumped from a value of only $548.9 million in 2014 to fuel a nearly-$22 billion dollar industry today, with an insane compound growth rate (CAGR) of 22.2% expected as far out as 2025. In the same timeframe, cryptocurrency is expected to grow at a 32% CAGR.
Even with the collapse of Bitcoin’s worth in 2018, the trend in upward mobility for cryptocurrencies is on pace to swell even higher than the burgeoning cannabis industry. As blockchain systems become more mainstream and their value even more apparent, this worth will only continue to rise. Similarly, as the U.S. expands the legalization of cannabis in various forms across the country, the value of the CBD industry will continue to climb as well.
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These industries are booming like few others, taking investors with them and prompting innovative connections between the two that look to maximize growth.
Innovative Connections
Recently, CBD and cryptocurrency have linked themselves even more intimately through combining their interests in areas like banking, entrepreneurship, and commodities trading.
Banking
Cannabis SwissX Bank is one such example of the connection between cryptocurrency and CBD. This company uses a blockchain and its own form of crypto — SWX Coin — to facilitate CBD transactions on a global scale. The worldwide nature and simplicity of a specified system for CBD trading lends itself to investor security and prompts growth in both sectors.
Blockchain platforms using cryptocurrencies are taking off as the future of CBD investing. Cryptocurrency is perfect for cannabis, as the secure and decentralized nature of a blockchain gives investors the tools they need to feel secure about investing in a product that is highly subject to federal regulation, banking restrictions, and potentially confusing tax codes that can vary by region or country.
The reasons cryptocurrencies like SWX Coin lend themselves so well to the CBD industry are many. Here are just a few:
● Limited ability of cash trading and purchasing in the CBD industry.
● Complicated legal oversight of CBD and hemp products.
● Prohibition of traditional banking of CBD transactions in some markets.
● Partnerships in two quickly growing industries.
● Security and privacy for CBD customers.
● Increased quality assurance through investor obligations.
Entrepreneurship
Through the ability of blockchain cryptocurrency platforms to provide security and privacy despite complicated federal regulations and banking restrictions, investors in CBD now have a safe way to invest in CBP while also contributing to the growth and usage of cryptocurrencies.
The secure methods of investment provided by blockchain technology enable entrepreneurship to grow in both industries, supplementing and growing one another by complementing each other’s strengths and weaknesses. Where crypto is abstract, CBD is a physical product seeing massive real-world success without any indication of slowing down. Meanwhile, speculation around cryptocurrency and its occasional volatility can sometimes discourage investors.
Combined, these two industries represent opportunities for entrepreneurship in both fields that could never exist singularly. This encourages investor funds to roll in to CBD and crypto startups, enabling new, innovative ways of conducting business.
Commodities Trading
Cryptocurrency and CBD together are looking to change the ways we trade and invest in commodities. With ambitious goals, these partnerships look to provide for communities of farmers and laborers while maximizing the value and revenue of CBD as a commodity.
Take Cannabium’s method of enhancing communities with crypto expansions, for example. This cryptocurrency, when purchased, triggers the production of CBD, funding jobs, and provisions for farmers. Then, the purchaser is rewarded with CHIT tokens on the Ethereum/USD exchange rate. When the CBD is sold in a real-world market, the Cannabium token-purchaser is netted cash.
This is a commodity/investor relationship that is rarely seen, made entirely possible through the unique relationship between cryptocurrency and CBD. By adding a publicly funded element to the CBD/Crypto connection, these industries allow more than just the distributors to profit, democratizing commodity trading. If it maintains the level of success it has seen so far, this kind of trading could become a trend of the future.
The Cryptocurrency and CBD Connection
Rarely do growing industries work so well together as CBD and cryptocurrency, each one playing on aspects where the other is weak. With banking, entrepreneurship, and commodity trading all significantly impacted in a positive manner from the crypto/CBD partnership, these connections look to flourish and grow for the foreseeable future.
As new crypto-cannabis connections form, more investor opportunities are popping up all the time. A wise investor might consider looking into the connection between cryptocurrency and CBD to determine if capitalizing on this growing future would be the right choice for personal investments.
A bright future is ahead for CBD and cryptocurrency. Tied together, they may just be a perfect recipe for success.
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