Whoa, you’re here early! We’re still on Beta, so excuse any error or mistakes.

NFTs in Cannabis

NFTs, crypto, alt coin, oh my! This article breaks down what these things all are, and how NFTs in cannabis could be a game-changer.

Jason SanderJason Sander · Oct. 19, 2021 · 4 min read
NFTs in Cannabis

NFTs and digital currency are hot button topics in both the investing world and from tax collectors. What are NFTs, and what is their future potential in the cannabis industry?

NFTs and Crypto Defined

Before we jump into how NFTs might play a role in the future of cannabis, let’s first describe what they are. Put simply, an NFT is a “non-fungible token,'' which is a digital representation of exclusive collections or creations. NFTs can be sold for millions, or as little as $1. The value of NFTs is based entirely on the buyer/ seller relationship.

So, Are NFTs Like Crypto? Not Quite, But Close

Since its inception in 2009, cryptocurrency has captured the fascination of investors and consumers alike. These people are perhaps seeking digital alternatives to a currency like Federal Reserve Notes, also known as American dollars.

The first crypto coin was of course Bitcoin, created by an unknown person calling themselves Satoshi Nakamoto. Since then there have been dozens, perhaps hundreds of alt-coins developed, some successful, and many others unsuccessful.

The main thing crypto and NFTs have in common is that they exist on a decentralized platform that is based on what is called blockchain technology. The difference is that many crypto experts view digital currencies as actual currencies, instead of investments.

NFTs in Cannabis - More than A Transaction

Like their cousins in crypto, NFTs are digital assets that cannot be replicated easily. Each Bitcoin, Litecoin, Dogecoin, etc, has a unique group of randomly generated numbers and letters assigned to them, and the “blockchain figures their equations out,” to put things in layman's terms. On top of this, there must be a finite number of Bitcoins, so everything is traceable and not susceptible to government influence. This is, of course, according to crypto enthusiasts.

Similarly, a legitimate NFT should come with a Certificate of Authenticity, so its scarcity can be verified. Although NFT technology is in its infancy, there are endless possibilities for its applications in all industries, not just cannabis.

NFTs offer a level of exclusivity and personal experience that we really have not seen before. NFTs can help promote consumers wanting to pay for experiences over objects, which we believe is a great way to achieve personal happiness and increase your overall well-being.

In the future, we may see dispensaries partnering with cannabis brands to offer exclusive NFT deals for their most valued customers. Since the concept and technology are so new, we don’t have many examples to provide. However, if there is an industry that is full of innovators, it’s cannabis.

GrowHouse - Cannabis NFTs in Action

One of the most interesting brands emerging in the NFTs in the cannabis space is the app called GrowHouse. This game allows users to “grow digital weed and learn about cannabis,” and uses the token $GROW, which the game’s website describes as “A unique token economy that allows players to play, earn $Grow, and yield farm.”

grow-house.png Image credit: grow.house

The GrowHouse economy looks to promote a digital space where users can interact and discuss all things cannabis, crypto, and gaming ecosystems. The game is reportedly being built on the polygon blockchain, which is supposedly fast and free from transaction fees. Again, even experts know little about this fascinating new technology in general, which is always something we are keeping in mind.

NFTS in Cannabis - Not Much New Under the Sun

Although NFTs are new and interesting, using digital currency in the cannabis space isn’t exactly a new concept. Cannabis growers have been registering their cultivars on the Bitcoin blockchain for years now. Doing this is a way that cannabis breeders can prove their cultivars are unique, with some companies offering CoA’s that deliver a publicly accessible and time-stamped record that they are the phenotype’s creators.

Additionally, dispensaries have been accepting crypto as a way to offer debit card purchases to customers in an otherwise cash-only setting. This is something that will inevitably come up as more cannabis banking legislation is being discussed, scrutinized, and heavily debated by lawmakers who may or may not know what they’re talking about.

While crypto appears to be here to stay in the cannabis space, cannabis-specific crypto does not. The most popular of which is POT coin (CRYPTO: POT), made famous by the former NBA player Dennis Rodman wearing a Pot Coin shirt at a North Korean summit in 2018. Since then, cannabis-specific crypto has not made much noise. The reason is, cannabis crypto is limited to one industry, and cannabis coins have not made the technological advancements that other widely accepted coins have.

IRS Taking Notice

As is the case with most goods that generate significant revenue, governments at all levels will inevitably want their tax cut. Recently, Marijuana Moment ran a story with what some would say is a naively yet seemingly innocent, and perhaps even benevolent headline that the IRS “hosts cannabis and crypto tax event that highlights legalization.”

This headline implies the website believes that the IRS is there to help businesses utilize the power of crypto. The IRS does not appear to be interested in discussing this at all, rather being much more interested in how crypto will be taxed, cloaking the discussion under the guise of caring about legalization.

NFTs in Cannabis: Bottom Line

Even though the complex world of crypto and NFTs is confusing, we are excited for the seemingly endless possibilities they can provide for the cannabis industry. Necessity is the grandparent of innovation, and there are many needs in the cannabis space when it comes to finances and unique customer experiences.

We hope to soon experience even more exciting innovations to enter into our industry, as the future is bright for lucrative opportunities in cannabis. NFTs in Cannabis should help us usher in even more jobs in the industry, for those who can advance the development and adoption of the tech in our niche.

Disclaimer: This article is for entertainment and education purposes only and is not financial or investment advice.

HashDash - Connecting the Cannabis Community

We hope you found value in our content about NFTs in Cannabis. Did you learn something, or have anything to add? Let us know - @hashdash on all platforms, except for Instagram, where we are @hashdashdotcom.

Check back to our blog often, because we post fresh content every week! HashDash is building a vast knowledge database of helpful guides and articles that will enhance your cannabis consumption experience.

Don’t forget to sign up for HashDash to discover your cannabis matches.

Thanks for reading! Please consume responsibly. Always treat this incredible plant with the respect it deserves.

Share
Jason Sander
Jason SanderJason is a versatile writer and marketer with over ten combined years of experience working with clients in various industries. He couples this expertise with six years of writing for the cannabis sector as well as a passion for the business side, and the science behind the plant medicine.
Related Articles
Aug. 18, 2021 · 4 min read
Sep. 13, 2021 · 6 min read

Compare

 

Category

Dominant Terpene

Chemotype

THC %

Positive Effects

Negative Effects

Alleviates Symptoms

Helps with

Welcome to HashDash

Are you 21 or older?

By accessing this site, you accept the

Terms and Conditions

and

Privacy Policy

.