Cryptocurrency and the CBD industry: Everything you need to know
Cryptocurrency and the CBD industry are two of the most rapidly growing industries in the current scenario. These industries see a significant spike in their growth rate every year, making them worth billions of dollars. There is a deep connection between both of these industries, which might not just seem evident at first sight.
The CBD and cryptocurrency market often come off as a gray area for most people at first, but they provide highly secure investment opportunities. Investors actively putting their money in these markets are reaping incredible profits and huge returns on investment or ROI. If you are curious about how these industries are exactly related, dive into our detailed guide.
Cryptocurrency And CBD
Cryptocurrency and CBD are two expanding commodities in the market, and the growth of these industries is highly remarkable. Studies estimate that the CBD industry will have a market valuation of around $57 billion by 2027. In contrast, the cryptocurrency market has already witnessed a hefty valuation of about $267 billion.
With multiple forms of cryptocurrencies available in the market, investors, especially young entrepreneurs, continuously explore and invest in them. Cryptocurrency is also being accepted as payment by many industries, CBD being one of them. Even with Bitcoin’s controversies, cryptocurrencies have seen nothing but continuous surges.
CBD industries have also undergone quite an evolution in the past years with more innovative products available in the market. From CBD oil smokable mixes to edibles like the infamous CBD infused gummies, it draws more and more customers globally.
Both the industries are projected to grow at substantial Compound Annual Growth Rates (CAGR) in the near future. By 2025, it is expected that the CBD market will grow at a 22.2% CAGR, whereas cryptocurrency at 32% CAGR. With more legalizations and updating regulations worldwide, these markets provide a promising future for investors and entrepreneurs.
See more: MicroStrategy purchased another $94.2 million worth of bitcoin during December
The Connection Between CBD And Cryptocurrency
Cryptocurrency and the CBD industry share a few common grounds that intertwine both of them. These are described further:
Banking
Cryptocurrency is being used to complete CBD transactions globally, and the banking sector is one such factor that connects both these industries. One of the prominent examples is the Cannabis SwissX Bank. It is a company that uses a blockchain and has come up with its crypto called the SWX Coin that enables one to complete CBD transactions internationally.
Having a reliable system for CBD transactions provides definite security for investors, attracting more trade and subsequently leading to growth. Cryptocurrency comes off as a perfect transaction method for trading Cannabis or CBD-related products because blockchain platforms are decentralized. They are safe for investments in products that come with regulations and complex tax codes varying with different regions.
Other reasons for the prevalence of cryptocurrencies in the CBD industry are restrictions on cash trading and purchasing, legal oversight of hemp and CBD-derived products, security and privacy perks for all the stakeholders involved, and assurance in quality due to investor obligations.
Trading Of Commodities
Cryptocurrency and CBD are two continuously evolving markets and bring forth new trading and investing in commodities. The amalgamation of both of these industries and increasing the value of CBD as a commodity promotes the welfare of CBD farmers, investors, and related people.
Cannabium is a company that has come up with an innovative way to develop various communities through the extension of crypto. When you purchase the cryptocurrency provided by Cannabium, it encourages CBD production, jobs, and opportunities for the farmers.
The buyer is also provided with CHIT tokens as rewards based on the USD exchange rate. Once the CBD is traded in the market, the buyer of the Cannabium token gets cash. This innovative relationship formed between cryptocurrency and CBD promotes both CBD as a commodity and crypto investments, making them grow parallelly.
See more: Crypto exchange BitMEX to launch and airdrop its native token BMEX
Entrepreneurship
Cryptocurrencies come off as blockchain platforms that have managed to sustain privacy and security even in the presence of complex regulations and trading and banking restrictions. Hence investors feel safer investing in CBD while contributing to the hikes in cryptocurrency use and investments.
This unified growth has given rise to entrepreneurship in both industries. More entrepreneurs and businesses are being set up based on the amalgamation of cryptocurrencies with CBD-related businesses and trading. These entrepreneurship opportunities are forming a common ground and at the same time boosting both industries as they get benefitted from the investments.
Conclusion
A lot has changed in recent years. And, if you go by statistics, several things are going to change too. The partnership of the CBD industry and cryptocurrencies will bring about an impeccable boost in the near future. It is already becoming a breeding ground for investors and business people. Now that you are well aware of this connection, maybe you can try investing in these yourself!
