Tuesday, June 13, 2017

Besides being a way for wealthy Asians to arbitrage currency, Bitcoin's most favorable customers may be those in the Pot industry

While many pro-Bitcoin advocates would like to tell the world that the hyper-sonic rise in value over the past five months has been primarily due to its growing popularity around the world, the fact of the matter is between 48-78% of all transactions for the cryptocurrency have taken place in South Korea, China, and Japan where wealthy Asians are using Bitcoin's ease of transferability to arbitrage the digital currency as a conduit to get out of their own sovereign fiat.

But there is actually one new and burgeoning industry that has taken Bitcoin to heart, especially since their access to normal banking systems has been restricted due to the Federal governments remaining stigma against their products.  And this is making entrepreneurs and business owners in the pot industry some of the most favorable customers of the cryptocurrency.

Cannabis companies are turning to the world’s most popular digital currency in an effort to get rid of all that cash. 
The inability to access traditional financial institutions is one of the marijuana industry’s biggest impediments. Legal cannabis was a $6 billion industry last year and is expected to grow to $50 billion by 2026, according to Cowen & Co. But because pot is illegal under federal law, big banks and credit-card companies steer clear. That’s forced most merchants to accept cash only, a logistical headache and constant security threat.  
Enter bitcoin, the cryptocurrency that consists of digital coins “mined” by computers solving increasingly complex math problems. At least two financial-technology startups, POSaBIT and SinglePoint Inc., use the cryptocurrency as an intermediate step that lets pot connoisseurs use their bank-issued credit cards to buy weed. - Bloomberg


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