Will Marijuana Alt-Coins Catch On?

The blossoming marijuana industry in the US has faced several problems expanding as federal laws still classify the drug as an illegal substance. One obstacle resulting from such legislation has been the inability for cannabis firms to engage with banks, which are inclined to stick to federal laws. This has created a challenge for small business owners because they are forced to keep large quantities of cash on hand and a lack of banking partners makes it difficult for them to establish a payroll. These issues have prompted some to suggest that marijuana companies team up with cryptocurrencies in order to create a safe, secure way for businesses to conduct transactions.

So far, three marijuana-related coins have

, though none with much success. PotCoin has been the most popular option, but the coin's value is equivalent to just 0.00000278 bitcoin. However, supporters of PotCoin say it is only a matter of time until the marijuana community adopts the cryptocurrency and it is able to gain some traction. If marijuana dispensaries were to begin accepting the coin, it would improve coin's viability and could takeoff as a form of payment.

In an industry as cutting edge as legal marijuana sales, it may seem surprising that dispensaries are unwilling to embrace an alternative payment method, especially since they struggle to deal with traditional banks. However, for dispensaries, the risk of using a largely unknown cryptocurrency is too great. Many believe that they will adopt a more stable option like bitcoin before latching on to a trend like PotCoin.