Understanding HempCoin (THC) And The Value It Provides To The Cannabis Market

The name Hempcoin is probably not something that most people have come across despite the growing popularity of cryptocurrencies. This could, however, be due to the fact that it is one of the cryptocurrencies that are not so popular. This then brings the question of what it is and what are its applications.

According to the Hempcoin website, it is a cryptocurrency that focuses on the agriculture industry, specifically on marijuana or hemp farming. It is built on Blockchain which is the same technology that runs other cryptocurrencies including bitcoin. It is worth pointing out that it is built on Bitcoin’s source code. Its reason for existence is to facilitate transactions between marijuana dispensaries and marijuana farms. The existence of this coin thus highlights the acceptance of blockchain technology in the world of marijuana.

Hempcoin aims to facilitate easier and faster transactions between marijuana or hemp farmers and distributors. The legalization of medical marijuana in many states and recreational marijuana in some regions has led to a rapid growth of the marijuana industry.

Hempcoin was launched in 2014 but has not really taken off like other cryptocurrencies such as Ethereum. However, this could be attributed to the fact that the hemp and marijuana industries have not really been popular until 2015/2016 when legalization became a hotly debated subject. Also, cryptocurrency was not such a big deal back then and these factors have played a role in its slow growth. However, things are now changing and digital currencies, as well as blockchain technology, are now trending. This has led to opportunities for Hempcoin to gain more popularity.

The fact that it is a cryptocurrency that caters to a niche market makes this digital currency quite appealing, especially to cryptocurrency traders. Almost all cryptocurrencies have recently experienced significant gains and this has also been the same for Hempcoin. Its price is currently at $0.242976 though it recently hit an all-time high at $0.260549. It currently has a market cap of $55,884,513 and is currently ranked at position 172 in the list of digital currencies based on market cap.

Hempcoin is however not the only cryptocurrency that is focusing on the marijuana industry. There is another digital currency called Potcoin that is also targeting the niche market. Its website points out that the marijuana industry is heavily reliant on banking services. Potcoin aims to become the standard form of payment for legalized marijuana but it seems that it already has competition from Hempcoin. However, Potcoin is currently ranked higher than Hempcoin in terms of market cap at position 141 with a market cap of $75,461,212 and its latest price at $0.344553.

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Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.

Image courtesy of Marc Fuya via Flickr