Why Buy Weed Online With Crypto Currencies

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Even the renowned American musician Willie Nelson once mentioned, “The biggest killer on the planet is stress, and I still think the best medicine is and always has been cannabis.”

Well, thank goodness, cannabis is being legalized in more and more countries for its recreational and medical use, resulting in high demand and boosting the weed business.

 

crypto in weed business-1

 

But you might still need the help of a cannabis software development company to ensure smooth financial transactions if you are into the pot business. Because in many countries, cannabis is still a forbidden fruit, I mean herb, that’s illegal at the federal level. As a result, banks still refuse to cooperate with the weed industry transactions.

So what can you do as a cannabis merchant to run your weed business without any hitch? You can always go Crypto!

Cryptocurrency is the guardian of the ‘weed business galaxy’ presently! Yes, just like Ethereum and Bitcoin, cryptocurrencies can be the perfect alternative payment options to keep your cannabis and CBD business up and running.

 

Reasons to Use Crypto for Weed Business

 

If you are still not that into crypto, and your mind is shouting like ‘Why! Why! Why!’, then we have brought some solid reasons to turn to cryptocurrencies now for the sake of your “canna-bis-ness”.

We have discussed all the reasons in detail below. But here is an infographic for you to take a quick glance at the reasons.

 

crypto for weed business infographic

 

#1 Because banks still don’t conduct pot transactions legally

 

Do you know that medical marijuana has been legalized in 35 states and also in the District of Columbia, as of November 2020?

But even though some countries are approving medical or recreational use of cannabis, it’s still not legal in most of the states and countries across the world. Conducting pot-related financial transactions is super complicated even in those states where it’s legal. The federal restrictions have prevented digital payments as well as the use of cards for legalized cannabis transactions, resulting in a huge cash payment issue.

The majority of the banking institutions around the world are still reluctant to support industries the products of which are federally illegal; not to mention cannabis is one of them. For example, the cannabis seeds of breeds like Grand Daddy Purple Feminized are still federally illegal, but legal in some states.

But with cryptocurrencies and the high risk payment gateway, you don’t need to worry about whether banks will support your business or not, as this virtual and digital currency doesn’t need any bank’s approval. Despite the pot industry being a tightly regulated one, regardless of the weed business’s volatility as an investment, irrespective of the regulatory and tax issues surrounding it, using cryptocurrency for cannabis and CBD trading is nowhere illegal.

 

#2 Because cryptocurrency broadens the customer base

 

crypto fo weed industry - 3

Image Source: Bitcoin News

 

As banks barred transactions related to cannabis, weed merchants ended up resorting to cash-only transactions which limited their reach at some point. Yes, while some consumers found cash-only transactions to be a risky business; some thought it to be safer to avoid involving themselves in bank-related issues or bank transaction risks over cannabis purchase.

Even in the past, many failed to purchase cannabis online as they did not have proper bank accounts. But one ‘Iron Man Snap’ and comes in the cryptocurrencies solving the whole weed transaction-related complications.

While the seed-to-sale software is there to facilitate the entire cannabis cultivation, extraction, distribution, and retail process; the cryptocurrencies ensure maximum people can purchase cannabis as for cryptocurrency transactions all a consumer needs is a smartphone and an email address.

 

#3 Because cryptocurrency eliminates bank transaction hassles

 

There are not only numerous legal issues that surround the cannabis industry but also various restrictions by the banking institutions on cannabis traders/vendors whenever it comes to card processing and banking. And not only that, to add more to the cannabis traders’ distress, banks can freeze their accounts connected to cannabis anytime they consider necessary which means cannabis merchants can face sudden substantial financial losses.

Due to these unnecessary hassles caused by banking institutions for cannabis-related bank transactions, traders are forced to turn to cash-only transactions which are not only dangerous but expensive and complicated too. Making things even worse, cash transactions are resulting in unprofitable businesses as more consumers are opting for the expensive cash-only transactions.

With cryptocurrencies and high risk payment gateway solutions like CloudPay Technologies (a third party payment company) being out there, conducting cannabis transactions is no more a headache as you don’t need a merchant account at the bank to accept payments or conduct transactions online.

Going through the unalterable and decentralized ledger-based blockchain technology, cryptocurrencies don’t have to undergo any bank or bank posed restrictions. Since no bank owns the blockchain, it means no bank can be accused of money laundering for processing cannabis transactions in cryptocurrency.

Cryptocurrencies are digital currencies that can be handled through mobile payment. With studies indicating digital sales going as high as $4 trillion by the end of this year, opting for the cryptocurrency is the best financial decision that cannabis merchants can take right now.

 

#4 Because crypto removes the stress of location-based payments

 

No matter where you are in the world, cryptocurrencies allow you to conduct transactions anytime from anywhere. Isn’t that cool? Eliminating the location-based restrictions, crypto lets vendors carry on their online dealings smoothly from anywhere. If you’re planning to acquire international clients, then as a cannabis merchant, switching to cryptocurrency can be your best bet to lead the weed industry.

With crypto vendors no longer have to put up with the taxes that they once had to bear when under conventional transaction systems. Yes, cryptocurrencies help cannabis and CBD merchants bypass some taxes that they used to pay when relying on location-based traditional transaction methods.

Those cannabis traders who have been successful in arranging credit card processing eventually ended up paying high transaction fees for cannabis is a high-risk business industry. But with cryptocurrency, such fees go down to less than 1%.

 

There are even some companies that offer cryptocurrency rewards or digital tokens that consumers can use for weed purchases later. For example, if you’re a member of the PotCoin community, you can get certain benefits through WeedMD, a licensed cannabis producing company in Canada, for medical marijuana prescriptions.

 

#5 Because crypto is secure, safer, and faster

 

Do you know that blockchain tech has never been hacked? It’s impossible to hack the blockchain because changing or removing one single block means causing change to all the blocks through the blockchain. And guess what, cryptocurrency is based on this very technology which means safe and secure payment and tracking of transactions.

With the presence of ERP solutions like SeedERP, which is a Seed-to-Sale ERP system, managing your enterprise from growing seeds to selling has already become easier. Take a look at the short video below to get a more detailed idea of the SeedERP.

With cryptocurrencies, cannabis-related financial transactions become easy peasy as well. No need to worry over cash-only huge transactions or requiring an armored contingent to protect it as crypto is the Superman here, always protecting your transactions and keeping the data safe.

Even when it comes to identity theft and chargeback frauds, cryptocurrencies take care of those too. Crypto is based on blockchain technology which is based on a distributed and decentralized digital ledger which means each transaction will be permanently recorded and can not be deleted or altered.

No interference with the transactions data records means reduced risks of fraud. Crypto simply puts complete control over the vendor’s funds at the vendor’s hands. Cryptos also offer an immediate settlement of the funds, thanks to the blockchain technology that provides instant validation of all transactions. No longer waiting hours or days for the credit card payment to post.

Unlike bank transactions, crypto can be completed within minutes. As long as a vendor has access to an active internet connection and a smartphone he can make or receive payments in the blink of an eye. Being a secure and faster mode of conducting transactions, crypto automatically becomes a convenient payment method for CBD and cannabis merchants and consumers.

 

#6 Because it makes business-to-business transactions simpler

 

The difficulties of conducting cash-only transactions are not just limited to the consumers of the pot, but beyond that too. The problems of cash-only transactions affect the entire supply chain at times. Not getting the point? Well, then keep following the cannabis chain.

First, as a cannabis vendor, you have to deal in-cash with the growers, transporters, and the retailers of the green herb too. Then there are also lab testing of the weed, licensing, and tracking of the goods that you have to deal with in-cash. And given the complex and strict state regulations regarding the weed business, the supply chain turns out to be expensive as well as more complicated.

But with cryptocurrencies, this whole process and the business to business or B2B transactions get simplified and can be handled more sensibly. The opportunity of paying with just one click simply discards the need for armored trucks filled with cash for purchasing the growing equipment and fertilizers. You can perform any B2B transactions within the crypto market with just a few clicks.

 

#7 Because it takes care of your privacy concerns and ensures transparency

 

Many customers fear that if insurance companies can get access to their records of purchasing cannabis, they might land into trouble for breaking certain marijuana-related laws. With cryptocurrencies, you, as a vendor, can also cater to the privacy concerns of your customers. For example, if a customer wants to stay anonymous about the cannabis purchase, with crypto transactions it is possible as crypto transactions and accounts can be anonymous as well.

Even with crypto, it’s possible to prevent tracking one’s transactions, irrespective of whether the customers buy the weed from online seed stores or physical dispensaries.

Apart from banking restrictions, transparency in transactions is another major concern in the cannabis industry. Well, cryptocurrency is based on an online ledger i.e. blockchain. It can be easily transferred to any computer for verification of any transaction and maintain transparency among the stakeholders.

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