The cannabis industry has many reasons to look to bitcoin as a way to grow and improve relationships with their customers.
The cannabis industry presents opportunities for investors. Thanks to bitcoin, investors can capitalize on the sector’s growth like never before.
A clear understanding of the cannabis industry is a must. Once you know the ins and outs of the sector, it’s easy to see how bitcoin can be used to accelerate the sector’s growth.
What You Need To Know About Cannabis
Cannabis is one of the most widely used drugs in the world, according to the United Nations. People use cannabis for medical and recreational purposes. However, cannabis was illegal in the United States for much of the 20th century.
During this time, U.S. lawmakers had concerns about the risks and benefits of cannabis use. But over the years, cannabis has been shown to help people dealing with PTSD and other medical conditions. This has prompted many lawmakers to rethink their stance on cannabis.
Since 2012, marijuana has been legalized or decriminalized in 38 states and Washington, D.C. Gone are the days of shady black market deals. As more states legalize marijuana, more licensed cannabis retailers are cropping up across the United States, contributing to safer and healthier cannabis use across the board. These retailers sell cannabis products and accessories. They are also looking for opportunities to distinguish themselves from competitors and maximize their sales.
How Bitcoin Impacts The Cannabis Industry
Bitcoin can drive the cannabis industry’s growth. It can do so in several ways:
1. Secure Transactions
Bitcoin can play a key role in a cannabis retailer’s e-commerce strategy. In any e-commerce business, establishing consumer trust is essential to making sales and driving conversions. By offering customers the ability to pay with bitcoin, a marijuana retailer can build rapport with their customers. Also, the retailer can help customers feel secure in their transactions without the oversight of a traditional verifier.
Cannabis retailers can use bitcoin to secure their transactions like never before. For instance, a consumer can buy marijuana products and accessories using bitcoin for payment with no risk of chargebacks. The consumer can immediately pay a cannabis retailer and get a receipt. This instills trust in a cannabis retailer. It can help a retailer foster long-term relationships with clients.
2. Tax Benefits
In 2019, activist group Blockchain Advocacy Coalition (BAC) sponsored a California bill relating to cannabis and bitcoin. The bill would allow legal cannabis businesses in California to use bitcoin and other cryptocurrencies to pay their taxes.
To date, this bill remains in discussion. If the bill gets approved, legal California marijuana businesses can instantly submit bitcoin payments to cover their taxes. These businesses can track their bitcoin tax payments on a digital ledger to guard against future tax issues. Plus, if they track the market closely, they may find ways to use bitcoin payments to save money on their taxes.
3. Brand Awareness
Cannabis legalization is underway across the United States. Regardless, legal cannabis retailers must consider every opportunity to promote their brands. These retailers can explore unique marketing opportunities. That way, they can launch marketing campaigns that generate widespread interest from consumers.
For example, a legal cannabis retailer can offer discounts to consumers who submit bitcoin payments. This allows the retailer to offer a distinct promotion that can draw consumers‘ attention. At the same time, consumers can take advantage of the promotion to save money on their cannabis purchases.
4. Investment Opportunities
Legal cannabis retailers must evaluate short- and long-term investment opportunities. These retailers can consider stocks, bonds and other traditional financial investments. At this point, they can assess bitcoin investments as well.
Some cryptocurrency experts are projecting the price of bitcoin to rise in 2022 and beyond. Legal cannabis retailers can buy bitcoin and add it to their investment portfolio. From here, these retailers track the results of bitcoin and their other investments. In the years to come, they may find that bitcoin delivers a significant return on investment.
How To Get Started With Bitcoin In The Cannabis Industry
Bitcoin can be purchased at any time. Yet, it is important to understand bitcoin before investing and using it for financial growth in the cannabis industry.
A legal cannabis retailer can use bitcoin to support its everyday operations. To realize the full value of a bitcoin investment, the retailer must plan accordingly.
It helps to start small with bitcoin. A legal cannabis retailer can buy a small amount of bitcoin and gradually increase their investment in it.
Meanwhile, a legal cannabis retailer can also establish a system for bitcoin payments and ensure it works properly. Next, the retailer can teach consumers about the system and be ready to respond to their concerns and questions about it. The retailer can also launch promotions to encourage consumers to pay for products and accessories with bitcoin.
The Bottom Line On Bitcoin And The Cannabis Industry
Bitcoin may have far-reaching effects on the cannabis industry. Legal cannabis retailers can get started with bitcoin today. In doing so, they may quickly discover that bitcoin can help them grow their businesses.
This is a guest post by Frankie Wallace. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.