Potcoin

Ever wondered what a cryptocurrency would look like…on weed? Well, while “potcoin” might not actually be partaking in the ganja, it was one of the first cryptocurrencies designed to be used in legal cannabis transactions. As of 2019, marijuana is still considered a Schedule I narcotic under United States federal law, even though it’s been legalized for medical and recreational use in many individual states. What this means is that cannabis-centered businesses, like marijuana farms and dispensaries, can’t legally open a corporate bank account, since what they’re doing is technically illegal at the federal level. So these organizations have to deal strictly and solely in cash. At best, this is inconvenient—think of how irritating it would be to have to pay our shop’s utility bills in cash every month—and at worst, it’s kind of dangerous. Every day, these shops can handle thousands and thousands of dollars, which makes them prime targets for theft.

But potcoin wants to change all that. Born in 2014, potcoin operated a lot like Litecoin for the first year and a half of its existence, until it changed to a different protocol in August of 2015, and did so again in 2017. Essentially, it’s a P2P anonymous cryptocurrency that aims to take the dangers of being an all-cash business out of the cannabis industry. It’s not as big of a thing as, say, Bitcoin, and its smaller volume can make it a little more volatile than other cryptocurrencies. It also faces some market competition: cryptos like DopeCoin are also trying to make a name for themselves in the P2P cannabis universe.

If cannabis does become decriminalized at the federal level, which some folks say is only a matter of time, then cannabis-centered cryptocurrencies might have an easier time of it. But until then, we can probably expect cryptos like potcoin to be somewhat volatile and less prevalent than other, more widely applicable crypto options.