Is Cannabis a Better Investment Than Cryptocurrency?

September 13, 2019


Is Cannabis a Better Investment Than Cryptocurrency? by Alex Moersen

Cryptocurrency is Out, Cannabis is In

In 2017, Bitcoin was on every investor’s mind. Starting the year worth $1,013.13, the currency’s value topped off in December at approximately $18,900 before dipping to $13,422.72 by December 31. In 2018, the limelight moved to cannabis stocks. Cronos and Canopy Growth were the first two cannabis stocks to list on the New York Stock Exchange. From their listings to March 2019, Cronos had grown nearly 200 percent and Canopy had grown over 50 percent. More and more of these companies have listed themselves on the New York Stock Exchange, and Canada’s legalization of cannabis has allowed companies to expand their operations.

Now, looking at 2019, which is a better investment, cryptocurrency or cannabis? Signs point to cannabis.

“If you want to be in something that’s very growthy, and actually legitimate as it is legalized and controlled properly, I think this is the place to go,” Carol Pepper of Pepper International, a financial services firm, told CNBC. She cited cannabis’ medical properties as the key to its success. “The medical applications for cannabis are staggering,” she explained in that same interview. “The research is being done and I really think this is the next huge growth area.” Specifically, she noted the plant’s efficacy in helping to treat arthritis and epilepsy.

However, there are still some cautious investors that believe cannabis will experience the same bubble burst that cryptocurrency did. Worth nearly 19,000 in mid-December of 2017, the price of Bitcoin has dropped to around 3,500 just over a year later. While it’s likely that cannabis may experience fluctuation in its pricing due to legislation changes, it’s unlikely that it would experience as severe of a burst as did cryptocurrency.

A few keys set cannabis apart from cryptocurrency. First, almost immediately we’ve seen established companies enter the marijuana space. 2018 saw Constellation Brands (owner of Molson Coors) partnering with Canopy Growth, and Altria (one of the world’s largest tobacco and cigarette producers and marketers) with Cronos Group. These nods to the cannabis industry from prominent, legitimate companies caused stocks to soar across the board, with the highest jumps going to Canopy and Cronos.

In the case of cryptocurrency, it’s been a slow process for industry leaders to get on board. Just recently, in February 2019, JP Morgan announced that they would roll out the first U.S. bank-backed cryptocurrency, marking the first time a major company stepped into the space.

Secondly, the cannabis industry has defined products with defined benefits. GW Pharmaceuticals, a U.K.-based pharmaceutical company, produces a number of CBD-based medications, the most famous of which is likely Epidiolex, currently the only cannabis-based medication that can be distributed through standard U.S. channels. Beside the medical benefits, there are also potential markets for cannabis beverages, different concentrates, and a variety of other products.

Cryptocurrency, on the other hand, has largely operated in obscurity, with people struggling to even define it. To this day, the public does not know who actually invented Bitcoin. The pervasive unknowns around cryptocurrency have caused many investors to be wary.

While cryptocurrency allowed some savvy investors to get rich quick in 2017, cannabis offers a more sustainable investment option. Stocks may not see the same spike that Bitcoin saw in 2017, but, in the long term, especially as legalization spreads, cannabis may prove itself as a smarter five-, 10-, even 20-year investment.

Image by 3D Animation Production Company from Pixabay 

A link to your site, with your site's name and description as anchor text.

Also in Education

Missouri to Vote on Recreational Cannabis, Expungement Amendment

August 15, 2022


Missouri to Vote on Recreational Cannabis, Expungement Amendment by Aron Vaughan

Nov. 8, Missouri residents will have the opportunity to vote on legalization of adult-use cannabis.  Missouri passed a constitutional amendment for medical cannabis in 2018 and advocates are looking to build on the momentum in the state.  Amendment 3, the Marijuana Legalization Initiative, is on the ballot in Missouri as an initiated constitutional amendment. If […]

A link to your site, with your site's name and description as anchor text.

Continue Reading

Cannabis Europa 2022, lifting your head to see the horizon

August 15, 2022

The location of Cannabis Europe is a fascinating echo of an industry that has seen better times in the UK. Old Billingsgate market was set up in 1850 and ran at its location until 1982, the UK’s famous fish market then moved to new locations as the fishing industry declined.  The cannabis industry by any …

Continue Reading

2022 Cannabis Ballot Measures: Up to Six States Voting for Recreational

August 13, 2022

They’re not there yet, and they might not get there, but this coming November, at least three states, (and possibly six), are putting it up to voters in yet more cannabis ballot measures for recreational legalizations. Will we get up to 25 legal states by the end of elections? 2022 elections are going to be […]

The post 2022 Cannabis Ballot Measures: Up to Six States Voting for Recreational appeared first on Cannadelics.

Continue Reading