Cannabis Startups Need Bitcoin – Bitcoin News


Cannabis Startups Need Bitcoin

The Cannabis industry and Bitcoin environment are two of some of the biggest growing ecosystems in the world right now. In the United States and the United Kingdom legalization and decriminalization of Marijuana is continuing forward. In the United States, medicinal Cannabis is currently legal in twenty states and there is recreational legality in two. Even though these laws change for the better of the Cannabis industry, the federal government still makes it difficult.

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“Mary Jane and the Honey Badger shouldn’t care. When have they ever cared for what the banksters and corporate oligarchs have to say?”

ZaZZZ-First-Cannabis-Vending-Machine-Operating-in-Seattle-Weedist2-640x427Regulation of Cannabis startups is handled by the individual states, while remaining a schedule 1 narcotic under federal law. The banking industry deals with both the state and federal level, however banking and money transmitters are heavily regulated by the feds. The banking system is afraid to jump into the Cannabis boat with its innovators leaving startups at a loss. In Colorado the waiting for federal permission from the privately owned Federal Reserve has been erroneous. The Fourth Corner Credit Union formed by the Marijuana activists of CO have been waiting forever. For normal businesses it only takes a few weeks to get federal reserve approval, in this case it’s been months of waiting. This leaves pot shops and dispensaries to deal with cash.

With banks not offering accounts to these businesses the Cannabis space is left at a loss. Most all startups cannot accept or use credit cards with their services, and working with card companies can be quite expensive. As compared to bank accounts, credit cards will charge large amounts per transaction and typically have annual fees. This lack of banking leaves operations holding thousands of dollars and even millions in cash on their property. Leaving them open to theft, robbery and federal raids. Most of these companies being fresh new startups they can’t afford a large loss in theft or being robbed by burglars and federal agents.

Enter Bitcoin

d1e5d2ad81aeb2e45fc7c9dbc8edeb4dBitcoin is the answer to the Cannabis industry’s dilemma. By using the virtual currency many of these operations can avoid the above troubles by working with crypto. Bitcoin is a decentralized, open source, peer-to-peer currency no one controls. There is no central bank or privately funded reserve. A startup doesn’t need to get a green light to move forward with an account. A Bitcoin wallet or account with BitPay can be started in mere minutes. As soon as an account is created businesses can accept the virtual currency right away and operate using less cash.

MC75M2a_GoldenSo what about all that cash? Cash can be converted to BTC with the use of an ATM. In most of the cities where legalization and decriminalization resides a Bitcoin ATM lives there too. This cash can be put into the ATM and delivered straight to your wallet or BitPay account in a matter of minutes. If the volatility of the digital currency scares you, anyone with a BitPay account can convert to dollars and euros immediately. BitPay offers merchant services and spreadsheets so startups can keep a constant eye on its transactions and companies can pay their taxes. ATMs can be found in dispensaries already in Colorado and in the city of Denver itself.

Work With Mr. Potter Or Destroy Pottersville With The Use Of Bitcoin?

Ethically the latter should appeal to this industry. Most of the land knows the corruption of the banking industry and how it’s destroying our economy. However, many Cannabis businesses are eager to join hands with these people. They seem to drop all principle just to get their foot in the door. Leading to overcharging people for a medicinal plant that grows in the ground just to make up an overhead by working with banks. The fees and regulations in the banking industry are so unjust that it literally can take a small startup and flip it upside down causing it to go under.

85654nanaimoC-Weeddispensary-07140038With the use of Bitcoin, startups don’t have to worry about working with ‘shady banksters’ who show nothing but greed. There are investors and lending clubs in the crypto field that are more than willing to work with these fresh new businesses. These people have core beliefs in democratizing money and working peer-to-peer with their investments. Using a currency no one controls is ethically sound and operates opposite to the banking cartel. The banks have been fleecing the wealth from the people for too long. Bitcoin is the answer to get away from their practices and form a new economy.

“Many Cannabis businesses are eager to join hands with these people. They seem to drop all principle just to get their foot in the door. Leading to overcharging people for a medicinal plant that grows in the ground just to make up an overhead by working with banks.”

In Denver, digital currency experts are holding a Bitcoin and Cannabis conference to help meld these two movements together. On October 24th and 25th leaders of both industries will congregate together to discuss how they can work together. The event is meant to show that these two new economies can help each other a great deal. With businesses, innovators, and investors on both sides of each movement the discussions should invoke a stronger environment, protecting it from banking and federal law prosecution.


Don’t Build off the Old. Build A New.

The use of cryptocurrency gives Cannabis companies a bold advantage to their starting business. They don’t have to store large amounts of cash on the premises, with Bitcoin they can accept the currency directly or convert the cash immediately. This avoids the acts of theft, robbery and the loss of money being confiscated by federal agents. If there isn’t much cash on hand it’s much harder to take by force. Bitcoin offers anonymity to both the buyers and sellers of Marijuana as well. There is no need for credit card entities and banks to see the people buying product. No mass surveillance or collection of private data happens with the digital currency. In the banking industry the very opposite happens and the collection of data from consumers is the sign of the times. Most people are not pleased by the financial systems ways of collecting data unknowingly from its customers. The Cannabis activists who operate these businesses could protect their consumers by not playing a part in the banking ways.

roundup_bitcoin_comWith medicinal Cannabis dispensaries legal in a lot of states and recreational in a few the banking industry is unsure of this market. Banks and credit card companies operate with federal law and this stops them from working with these startups. Credit card companies also have to comply with the federal policies and stop themselves from initiating business with Marijuana. Mary Jane and the Honey Badger shouldn’t care. When have they ever cared for what the banksters and corporate oligarchs have to say? They don’t and operators of these businesses shouldn’t care either. Both of these markets are growing without the permission and the capital given by banks. They still grow and at amazingly large rates and quantities. This is because it’s what the people of the region want. When a true majority of consensus want something typically they get it, even when the small sociopathic minority tries to bar them from growth.

Bitcoin offers these startups and companies economic sovereignty. It allows them to work beyond and away from the corrupt banks and Wall Street. Its a global market with no rules, no borders and the power to turn Marijuana startups right side up. Working with greedy banks is basically an upside down method and most likely will turn a company into dust or worse just as greedy as the banksters themselves.

What do you think of Cannabis Startups and Bitcoin Joining Forces? Let us know in the comments below.

Tags in this story
Bitcoin, cannabis, colorado, Cryptocurrency, Decentralization, marijuana, Peer2Peer

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Jamie Redman

Jamie Redman is the News Lead at News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for News about the disruptive protocols emerging today.

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