NEWS

Time To Ditch Bitcoin (BTC) For “Weed”?

Cannabis Bitcoin

A few days back, while quoting a US based Wealth Advisor, CNBC took to Twitter posting, “Forget Bitcoin, cannabis is the place to go.” It drew a lot of reaction, but for the right reasons.

According to the advisor, Carol Pepper of Pepper International, “weed” provides the next best outcome for investors looking for a handsome return on investment (ROI). Apart from the medicinal value found on cannabis, Pepper is also banking on the fact that the “herb” is “controlled properly” possibly contrasting its control to that of Bitcoin which has a lot of grey areas. Confident of her stand, the wealth advisor said:

“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.”

Cannabis Has A Better ROI YTD

Fortunately, Pepper has statistics to support why it’s time to ditch Bitcoin for cannabis. For instance, NASDAQ, the second-largest stock exchange in the world, has listed Canadian companies – Canopy Growth and the Cronos Group – which deal in cannabis. Since they started trading on the stock exchange, Canopy Growth and Cronos Group have registered 65 and 115 percent growth respectively on their stock year-to-date (YTD).

Carol categorically said that the gains cannabis would amass on its way up will not be diluted. This was in response to whether “weed” will experience a pump and bust wave such as the one recorded by Bitcoin in 2017.

She added that:

“Many burgeoning cannabis companies control the supply chain from the growth of the plant through to the final sale of derived oils, cream, and edibles…This was likely to remain an industry trend as guaranteeing a stable level of the chemical within each plant was scientifically tricky.”

But Will The Shift From Bitcoin To “Weed” Happen Any Time Soon?

Unfortunately, there is no straight answer. This is mostly because cannabis stocks have recently entered the market. And, as is always the case, exciting and new securities or stocks have an awe factor that helps in attracting investors. Additionally, as noted by investing.com, stocks pertaining to the “herb” “are still grossly overvalued when assessing their multiples.” All the same, Bitcoiners are not ready to lose it to cannabis, and they are prepared to attack:

“The government controls the marijuana market. It’s still very illegal to grow it in the back yard and sell it at the farmers market. Bitcoin, on the other hand, can’t be controlled by the government, I could mine it in a room and cash it out at the crypto ATM down the road with impunity.”

What of ROI?

Looking at the return on investment for “weed” and Bitcoin, the former may not be able to unseat Bitcoin, at least not for now. For instance, Bitcoin’s YTD performance has recorded a 135 percent increase. Since the start of the year, the price of Bitcoin has been increasing with May being its best month so far this year, at some point peaking at over $9,000. With the best performing cannabis stock recording a 115 percent increase year-to-date, and projections pointing to a possible downside, Bitcoin will continue to look more and more promising to investors.

About author

Loving Crypto, Open to Technology, Engineer, Trader
Sign up for our Newsletter