Bitcoin for potheads: Cannabis cryptocurrency 101


Why cryptocurrency?

Marijuana is still illegal at the federal level in the United States. That means dispensaries and cannabis-related businesses operating lawfully under state laws can still have a hard time getting traditional banks to take their business.

As such, many cannabis-related businesses must operate on a cash-only basis. This is an inconvenience and it puts marijuana businesses at personal risk.

Since the industry still lacks a non-physical way to complete secure transactions, cryptocurrencies actually make a lot of sense for marijuana operators.

At least three marijuana-related cryptocurrencies have tried to make a go of things so far. Only one — PotCoin — has emerged as potentially viable, according to The Cryptocurrency Times.



How does PotCoin work?

PotCoin developers’ goal is to connect cannabis-related businesses and individuals favoring cannabis legalization with an “industry-specific crypto-currency,” that facilitates secure transactions within the global cannabis industry, according to Azarius

More from Azarius:

As with Bitcoins there is no central bank distributing or controlling the money stream. Instead PotCoin flows through a decentralized peer to peer system. The PotCoin

Read more ... source: TheBitcoinNews