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Top 4 Marijuana Cryptocurrencies

Mrinalini Krishna is an expert on alternative investments as well as company and market news. With over 10 years of business journalism experience, Mrinalini has written stories about business, finance, and the marijuana industry. She received her Bachelor of Arts with honors in economics from the University of Delhi, her Master of Arts in mass communication from the Symbiosis Institute of Media and Communication, and her Master of Arts in business and economic reporting from New York University.

​Somer G. Anderson is CPA, doctor of accounting, and an accounting and finance professor who has been working in the accounting and finance industries for more than 20 years. Her expertise covers a wide range of accounting, corporate finance, taxes, lending, and personal finance areas.

Skylar Clarine is a fact-checker and expert in personal finance with a range of experience including veterinary technology and film studies.

Why Do Weed and Cryptocurrency Work Well Together?

The fight to legalize pot is gaining ground. As of June 2021, medical marijuana is legal in 36 states and D.C., while 18 states and D.C. have legalized recreational usage. These numbers are expected to grow as more states explore ways to decriminalize the plant. Keep in mind, though, that marijuana is still illegal at the federal level—though there are two bills legalizing it in the House of Representatives—which makes it complicated for anyone conducting financial transactions even in states where pot is legal.

Businesses and operators selling and/or distributing recreational and medical pot are still barred from using banks for their transactions because of federal legislation. The development and use of marijuana-specific virtual currencies have ramped up in order to fill the hole in this market.

Cryptocurrencies make it easy for people in the marijuana industry—or simply those who want to buy some weed—to carry out transactions. While Bitcoin has become widely popular in the virtual currency space, there are a few alternative cryptocurrencies catering specifically to the pot sector. Read on to find out more about the top five cryptocurrencies on the market.

Key Takeaways

  • Although marijuana is legal in many states, the U.S. federal government hasn’t decriminalized the drug.
  • Pot-based operators and consumers can use marijuana-specific cryptocurrencies for their transactions since banks cannot legally conduct pot-related business.
  • Popular marijuana-based cryptocurrencies include PotCoin, CannabisCoin, DopeCoin, HempCoin, and CannaCoin.

PotCoin (POT)

Launched in January 2014, PotCoin was one of the earliest cryptocurrencies for the marijuana industry. It was designed to solve banking problems for people looking to transact in legal marijuana. Trading of PotCoin takes place directly between people without using a bank or clearinghouse. Its creators wanted to capitalize on Colorado’s legalization of marijuana and even installed a PotCoin automated teller machine (ATM) at a marijuana dispensary in Colorado.

But the currency failed to make a huge mark, remaining in the shadows until June 12, 2017. A press release and a video of former NBA star Dennis Rodman sporting a PotCoin.com shirt in North Korea gave PotCoin a shot in the arm. By funding Rodman’s trip, not only did PotCoin re-enter the media spotlight, but its value approximately doubled in just one day, according to CoinMarketCap. As of August 2021, its market cap was about $3.7 million—a big jump from $81,547 at the start of February 2014. One PotCoin was worth $0.01695 in August 2021. The coin was up about 70% year-to-date.

The supply of PotCoin is limited with, you guessed it, 420 million coins. More than 226 million are in circulation. It trades on three markets and also transitioned to proof-of-stake, which allows people to mine or validate block transactions according to the number of coins they hold. An important caveat is that PotCoin claims transaction speeds of 40 seconds, which are pretty impressive compared to those of Bitcoin.

The cryptocurrency announced some new features at the beginning of 2019, including HD Wallets, a reduction in synch times, and faster network synchronization to help boost the user experience.

It upgraded its desktop and mobile wallets again, migrating them to a new platform on the Nexus Network—a move it announced on April 20, 2021, in commemoration of 4/20 (a day dear to the cannabis community’s heart). It also celebrated the holiday with the launch of PotCoin Rewards, a revamped website, and the announcement of the PotCoin Foundation.

CannabisCoin (CANN)

CannabisCoin was also developed in 2014, just a few months after PotCoin. It is a proof-of-work, peer-to-peer open-source currency and, like Potcoin, was aimed at easing transactions for medical marijuana dispensaries. While it initially gained popularity, it has failed to deliver for investors.

So how does it work? CannabisCoin promises to convert cryptocurrency directly into marijuana. Under the name CANNdy, there is a line of medicines and marijuana strains grown for the specific purpose of exchange at the rate of 1 CannabisCoin to 1 gram of medication.

Marijuana-specific cryptocurrencies also use virtual wallets to hold and store coins, just like regular cryptocurrencies.

The total supply of CannabisCoin is set at 91.8 million, with over 77 million in circulation. The currency’s market cap was $1.61 million as of August 2021, according to CoinMarketCap.

DopeCoin (DOPE)

DopeCoin was founded by Adam Howell—also known as Dopey—in January 2014. Little is known about the specific markets the currency serves except that its “mission is to provide marijuana enthusiasts with a modern and secure way of doing business for the 21st century.”

According to its website, DopeCoin users can transact pseudo-anonymously in under a minute, and don’t pay any fees or transaction costs.

Started with a vision of creating a Silk Road for transactions in marijuana across the world, DopeCoin supply is limited with about 117 million in circulation. It is also a proof-of-stake currency, giving investors a chance to earn 5% in annual interest. The currency has a market cap of $323,951 as of August 2021, according to CoinMarketCap.

HempCoin (THC)

HempCoin also came into existence in 2014, although its focus is less on individuals using it to buy weed. Instead, this cryptocurrency was designed for use by the farming industry and medical and recreational dispensaries. HempCoin’s website claims its goal is to “help facilitate secure transactional relationships between farmers, distributors, and consumers.”

It’s interesting to note that HempCoin is used in all areas of agriculture, not just ones involving weed. As of August 2021, the price for one HempCoin was $0.0102, and its market cap was nearly $2.68 million.

Buy CBD Oil with Cryptocurrency

When it comes to buying sensitive products like CBD Oil, it is very highly recommended to do this as discreetly and anonymously as possible to raise the least amount of suspicion from banks and authorities. Luckily cryptocurrencies are so advanced now that anyone can buy them and spend them to make discreet purchases.

For those who were not aware, a Cryptocurrency is a digital asset designed to work as a medium of exchange that uses cryptography to secure its transactions, put in easier terms “Internet Money”.

For more information on what a cryptocurrency is and how it works, take a look at this Wikipedia article or this video.

Now that you’re more familiarized with Cryptocurrencies, at CBD Oil Shop we support a de-centralized economic system and therefore offer a 20% discount on all orders that use our supported cryptocurrency payment methods.

How can you get Cryptocurrencies?

If you are interested in using a de-centralized, peer-to-peer currency that does has no ties with the economy of any country and is private, here are some options that you might consider interesting when looking into getting a piece of revolutionary technology that will re-shape global economy as we know it.

You can start buying cryptocurrency now, not only the famous Bitcoin or Ethereum but also:

Litecoin: An offshoot of Bitcoin that has quicker transactions & experiments with new tech

Monero: Private and censorship-resistant transactions.

An easy way to get started is:

  1. Set up an account on a site like Coinbase, Coinmama (where you can purchase coins with a credit card) or Bitpanda (where you can buy coins using PayPal or credit card, although a quicker way to do this would be Changelly.com which reduces verification time and allows you to have cryptocurrency in your name much faster).
  2. Buy Cryptocurrency using your credit card, Paypal or bank transfer
  3. Use your coins on CBD Oil Shop with a special checkout price.

What are the advantages of Cryptocurrencies?

Although it seems complicated and better left to hackers and hardcore internauts, buying and using cryptocurrencies is free from risks, has similar if not higher finance-grade security for transactions, but is completely independent from banks or other financial insititutions and is very easy to use.

With cryptocurrency, you can make online payments as easily as sending an email, with minimum transfer costs and within minutes!

Once you have set up an account and verified your details such as identity or bank account, you can look for the cryptocurrency of your choice from verified sources and buy currency that you can use throughout the web, deep web and select physical outlets such as ours.

And what’s best is that you will get 20% off your purchase on CBD Oil Shop.

Get Your Crypto Wallets Out: These CBD Companies Accept Bitcoin Payments

Ready to blockchain your way to therapeutic CBD bliss?

Are you a Bitcoin user looking to buy CBD or cannabis products without needing the federal banking system? Great! Then look no further. We’ve scoured the internet to find the very best cannabis, CBD, and delta-8 companies in and out of the US that accept Bitcoin and other major cryptocurrency payments.

TL;DR

  • You can find a few CBD and delta-8 THC companies and marketplaces accepting Bitcoin and crypto in the US, UK, and Europe.
  • Bitcoin’s main benefit is it offers you a safe, secure, and anonymous payment alternative to federal banks that shy away from the cannabis industry — great news for CBD customers and businesses!
  • One major downside of Bitcoin for companies is the heavy taxes — all transactions are taxed, which can increase business costs dramatically.
  • A small number of marijuana dispensaries also accept Bitcoin payment.

CBD companies accepting Bitcoin and other types of cryptocurrency

While Bitcoin and other cryptocurrency payment options aren’t yet common in the CBD industry, here are some CBD companies opting to integrate crypto payment services and technology.

International CBD companies accepting Bitcoin and other cryptocurrency payments

To all you international CBD shoppers looking to pay with Bitcoin, there are a few CBD companies accepting cryptocurrency payments outside of the US.

CBD and Bitcoin are the new rebels with a cause

Despite being two very different industries offering two very different things, CBD and Bitcoin have one distinct similarity: they were born to rebel against the status quo.

CBD’s presence in the market is a giant middle finger to the long-standing pharmaceutical industry. Big Pharma overlords see the CBD industry and hemp-derived CBD products as a major threat to their bottom lines, offering a non-intoxicating, non-addictive, and powerful alternative to pharma-based medicines, particularly prescription opioids.

Likewise, Bitcoin is a direct response to the federal banking system, a system many believe fails to serve the people’s interests. The decentralized nature of Bitcoin and other major cryptocurrencies means federally-controlled banking institutions are no longer needed to mediate payment transactions. Instead, they offer fast, secure, and anonymous transactions without disproportionately high transaction fees.

How Bitcoin and CBD are a match made in heaven

Despite hemp and hemp-derived CBD being federally legal under the Farm Bill 2018, federal banking institutions remain skeptical of anything related to cannabis, even if the CBD is sourced from legal hemp.

The problem here is cannabis and CBD companies are finding it increasingly difficult to set up merchant accounts or get financing from major banks.

Thankfully, Bitcoin offers a viable solution. No centralized banks are required to process or mediate payment transactions, instead relying solely on the decentralized Bitcoin network.

The downside of Bitcoin payments for cannabis companies

On the business side of things, Bitcoin and other cryptocurrencies seem almost faultless. They’re anonymous, secure, fast, and viable alternatives to the federal banking system. However, they can also be a nightmare to deal with, especially when it comes to taxes.

Bitcoin isn’t a real currency nor is it real money, at least not in the eyes of the IRS. Instead, the IRS views all cryptocurrencies as property and a profitable investment.

The problem with this is Bitcoin gets the same tax treatment as any other investment and is subject to income and capital gains tax when traded, exchanged, or spent. Bitcoin payments are also taxed.

If a marijuana dispensary receives multiple Bitcoin payments per day, the business costs increase quite rapidly and in a short period of time. This is why many dispensaries and online CBD stores don’t typically offer cryptocurrency payment options.

Are there any delta-8 companies accepting Bitcoin payments?

Yes. There is one notable delta-8 THC company accepting Bitcoin. D8 Holdings, a leading delta-8 producer with offices in Hong Kong, announced it will start accepting Bitcoin, Ethereum, and Dogecoin payments. A free pack of delta-8-infused gummies will also be handed out to customers paying with these cryptocoins.

According to the company’s press release, D8.co will begin integrating Bitpay later this year, all transactions will be settled in Dogecoin, and you’ll be able to trade them for delta-8 vape carts, disposables, and gummies as long as you’re above the age of 21.

Other delta-8 vendors accepting Bitcoin payments:

Do marijuana dispensaries accept Bitcoin?

Yes. There are a few marijuana dispensaries accepting Bitcoin but they’re difficult to find.

Most marijuana dispensaries in the US only accept cash or mobile app payments. Debit and credit card payment options do not exist, simply because the banking system is federally regulated, marijuana is federally illegal, and financial banking institutions could risk losing their license if they offer payment services to illegal companies.

There are two marijuana dispensaries openly accepting Bitcoin and other cryptocurrency payment options.

The first is Ohana Cannabis based in Emeryville, California. The dispensary openly accepts Bitcoin and other cryptocurrencies as legitimate payments. Ohana also became the first dispensary to accept a cryptocurrency payment from a city official, who used Bitcoin Cash and Fed’s LBA token to make the purchase.

The second marijuana dispensary to allow Bitcoin payments is Helping Hands located in Boulder, Colorado. The dispensary was the first-of-its-kind to accept Bitcoin payments for recreational and medical cannabis in the state.

Do marijuana delivery services accept Bitcoin?

No, there are currently no weed delivery services that accept crypto payments.

Are there marijuana cryptocurrencies?

While Bitcoin, Dogecoin, Ethereum, and Litecoin are used across several different industries, developers decided to create cryptocurrencies specifically designed for the CBD and cannabis industries.

Launched way back in 2014, just as the crypto scene was starting to evolve into what it is today, Potcoin (POT) is the oldest cannabis cryptocurrency. Based in Colorado and created by three entrepreneurs living in Canada, this cryptocurrency aims to not only provide a decentralized form of banking but also become the gold standard payment within the cannabis industry. The supply of PotCoin is 420 million coins, which was inspired by the cannabis celebration date 4/20.

Only a few months after PotCoin came CannabisCoin, a peer-to-peer cryptocurrency that promised the same as PotCoin insofar as making financial transactions between customers and marijuana dispensaries easier. Unfortunately, the crypto’s success has dwindled, paling in comparison to its PotCoin rival.

Dopecoin was created in early 2014 by a guy named Adam Howell, who also goes by the nickname “Dopey”. His vision for DopeCoin was to create a Silk Road cryptocurrency, providing marijuana users access to a modern and secure avenue of doing business in 2021. There are no transaction fees or usage costs.

CannaCoin was developed in 2014 by a group of NWGT.org medical cannabis forum members as a response to the “cash only” nature of cannabis dispensaries and the 2008 Global Financial Crisis. According to its Wiki website, CannaCoin is “is geared toward use within the medical and recreational cannabis community worldwide as a medium of exchange, a unit of account, and a store of value for cannabis and cannabis related goods and services”.

Unlike the other cannabis cryptos listed above, HempCoin isn’t primarily designed for customers purchasing cannabis products from dispensaries. Instead, it’s the first and only cannabis-related cryptocurrency facilitating fast, secure payment transactions between farmers, distributors, and consumers.

Tokes is one of the newer cannabis cryptos. It was created by Michael Wagner & Gabriel Allred in 2016, two years after Potcoin, DopeCoin, and CannaCoin, and runs on the Waves blockchain. Tokes is designed to provide the cannabis and CBD industries a legitimate banking solution. All transactions take less than 30 seconds and cost less than 1 cent per transaction.

Closing thoughts: Will more cannabis and CBD companies accept Bitcoin payments in the future?

With CBD now the fastest-growing industry in the US, Bitcoin reaching into the thousands for a single coin, federal banks still not budging on the cannabis industry, and more crypto payment technology in development, we see a bright future ahead.

However, two of the main issues with crypto payments in the cannabis and CBD industries are the high fees and tax issues, both of which can be a huge financial burden. There’s also the problem of major banks shying away from the cannabis industry as a whole. This leaves companies stuck between a rock and a hard place.

Thankfully, cannabis and CBD companies might not be stuck for too long. The SAFE Banking Act (the Secure and Fair Enforcement Banking Act), which seeks to allow banks to provide financial service to licensed cannabis companies without federal prosecution, passed the House in March. If successful, CBD and cannabis companies will find it easier to get bank loans, open merchant accounts, and process debit and credit card payments.