Bitcoin vs Marijuana is More Like Crypto AND Cannabis: A Look At What Both Industries Are Unmasking
As things stand, most major financial institutions are staying away from the crypto and cannabis market altogether. However, awareness has steadily increased in relation to both of the aforementioned domains with many small companies that have previously operated in one market are quickly developing an interest in the other.
So without any further ado, let's look at some of the commonalities that the Cannabis and Crypto sector share with one another:
(i) Similar Regulatory Environments:
As most of our readers probably already know, both of the aforementioned industries are more or less regulated on a state by state basis (which means that there is no Federal framework overlooking both areas). To be even more specific, we can see that Cannabis is currently available for use recreationally in the United States only in 10 states (33 for medicinal purposes). With that being said, US law enforcement authorities still have the right to arrest an individual driving from Colorado to Kansas even if he/she just has a small joint on them.
While looking at its analogous counterpart from a crypto standpoint, we simply need to turn to operators and investors working within the United States who are pretty much under the assumption that their businesses can disappear/ or be significantly disrupted overnight if regulatory authorities choose to do so.
(ii) Product First Mentality:
Both the crypto and cannabis industry share the common thread of having a “product first” attitude. For example, altcoin developers had been building the fundamental protocol layers for Bitcoin, Ethereum much before these currencies even came to the spotlight. Similarly, cannabis companies have also been trying to legally cultivate the best products possible before the market starts becoming more and more accessible to the masses.
(iii) Big Brains:
It is quite evident that many of the people involved in these markets have an entrepreneurial brain along with a wealth of educational pedigree. For example, one quick search on Linkedin can show us that there currently exist a large number of Penn, Harvard, and Stanford alumni who are currently working in both of these burgeoning industries.
To be even more specific, we can see that cannabis industry leaders such as Leafly or Medmen have been successful in luring more and more high caliber talent hailing from some of the most prestigious schools, business houses on the planet.
(iv) Amazing Profitability:
Another common bond that the crypto and cannabis industry share with one another is that of helping investors procure “disproportionate returns” within extremely small periods of time. Elaborating further on the matter, we can see that as far as crypto assets go, there are many tokens that have in the past been able to generate 5x returns even though they have not had any major use cases to back them up. The same can be said of the cannabis industry but to a smaller extent— since this market has not yet been given a lot of time to flourish yet.
In closing, it is worth pointing out that as both of these industries continue to mature and become commoditized, consumer experience will become the core differentiator between the two. With this information in mind, it is important to remember that companies that realize this simple point-of-difference early on will be the ones that witness the most amount of success in the future.