Potential investor here.
Let's say I own a dispensary in Colorado. I have as much business as I can handle because, well, legal weed.
Why should I accept CannabisCoin?
I like the idea behind CannabisCoin and the peg, I just need to understand why more than just this one dispensary associated with the dev will want to adopt it. Why should I accept a coin and sell my weed at a loss in hopes the coin will accrue in value so I can break even. Why not just use Bitcoin? Or Darkcoin since it has anonymity.
Thank you.
First of all, by accepting the CANN Peg, you are being part of the CANN Movement. And the goal is to allow patients access to affordable medication.
Secondly, since CannabisCoin is pegged at 1:1, meaning 1 CANN per Gram of Cannabis, CannabisCoin will be a MORE STABLE cryptocurrency than Bitcoin or Darkcoin.For example, Bitcoin is already accepted by a dispensary in Washington (
http://www.coindesk.com/washington-dispensary-now-takes-bitcoin-cannabis/)
Now imagine how volatile Bitcoin can be and as a business owner, if you do not instant-exchange your Bitcoin for Fiat, you might take a big loss the next day.
As for a customer, today he may pay for a gram of Strain A @ 0.05 BTC, since BTC price now is $400, so thats about $20 he is paying for a gram of Strain A.
However, perhaps BTC drops by 10% tmr, then the cost in BTC to the customer has just gone up by 10%, so he now has to pay 0.055 BTC.
Whereas, by using CannabisCoin, whatever the price of CannabisCoin, the price to a customer and the dispensary will
ALWAYS be the same since the Peg is 1:1, so
1 CANN per Gram of Cannabis.
Hence,
CannabisCoin is LESS Volatile and MORE Stable, a better choice for dispensaries among many other cryptocurrencies out there!
Thirdly, as for selling Cannabis at a loss, yes for the short-term, it is paper loss. Not that I am expecting you to instant-exchange Cannabis for Fiat until at least near parity or at parity.
Lastly, the question now in your head is, then how long do I have to wait for CannabisCoin price to reach parity and while waiting, what do I stand to gain? Simple.
You end up with
MORE NEW Customers. Customers that got to know you because of the CANN Peg may end up being a long-term customer. (Think the Groupon effect here, small loss on a single product/service in exchange for new customers)
And once the news spread that there are dispensaries that have adopted the CANN Peg, it won't take long for the price of 1 CannabisCoin to reach parity to the average price of 1 Gram of Cannabis.
Oh and 1 more thing, why should dispensaries get involved with crypto in the 1st place?
Well, blame the banks for being so hostile to dispensaries. The banks do not want to deal with dispensaries and many are unbanked even up to today!
So what's the risk to the cannabis industry by being unbanked which some may ask?
Well, it’s a massive public safety risk where having a lot of cash on site makes cannabis businesses savory targets to and for criminals.
It also creates ample difficulties for doing business on a day-to-day basis where you cannot offer customers debit or credit card services and where paying your taxes and payroll is very, very challenging.
Read more here:
http://www.usatoday.com/story/money/business/2014/08/31/pot-marijuana-industry/13628491/Wow, pump much? I like the idea and all but we need to be realistic. By saying its will be more stable than BTC is just plain non sense. I dont even need to explain that...
And you must know nothing about biz and Groupon. It is detrimental to small business! There are plenty of horror stories about it. I own a restaurant and food trailer and have seen it first hand. In a simple math explanation, no small biz can make money (even if you get new customers, which you wont as Groupners are the most fickle customer base that exist) on 25 cents to the dollar. There is no money there left, ive had friends try it after i strongly suggested otherwise. They said they can make it up on volume and new customer (the sales pitch from Groupon). lol, how do you 'make it up one volume' if you are losing .75 cents per dollar on every sale. Groupon should go out of business. Sorry for the rant, but ppl need to know about their scam, unless you are a HUGE corp, it will COST you money with very little customer retention.
And the local banks are working with them. Im not trying to say this is a bad buy or anything just putting my 2 cents of reality. Like the above post, its cap would need to be around 1B. Seems unlikely with one dispensary taking it.
