Two new Bitcoin-style currencies are on the rise: PotCoin and DopeCoin. Both cryptocurrencies can be used to buy marijuana. Here’s everything you should know.
1. PotCoin & DopeCoin Have Different Intended Uses
While both PotCoin and DopeCoin are designed to be used to pay for marijuana, the ethics behind each currency are slightly different. Business Insider notes that PotCoin is designed to be used in transactions for legally obtained recreational or medical marijuana, while DopeCoin’s makers are “unconcerned with legality.”
2. PotCoin & DopeCoin Currencies Could Be as Volatile as Bitcoin
"Bitcoins for weed" were inevitable http://t.co/SZHSrSCdNr
— HuffPost Tech (@HuffPostTech) March 19, 2014
The Huffington Post compares PotCoin and DopeCoin to Bitcoin, the famously valuable (yet volatile) online currency. Constantly fluctuating currency value is something that cryptocurrencies must deal with. However, it seems like the makers of these drug-focused currencies are prepared for those market fluctuations.
“When asked about the potential volatility of digital currencies, like the dramatic fluctuations seen with Bitcoin, both developers agreed that volatility is normal with a new digital currency. Both said the size of the global drug marketplace would ultimately help stabilize the new currencies.”
3. PotCoin Already Developing Social Media Presence
PotCoin has already established their own subreddit, where Reddit users can learn more about how Potcoin works. There are also a number of related subreddits where people can beg for free PotCoins, or ask people to complete tasks for them in exchange for PotCoin. PotCoin also appears to have a Twitter account.
4. PotCoin & DopeCoin Could Boost Sales at Marijuana Dispensaries
Both of these cryptocurrencies could be used at marijuana dispensaries, according to Business Insider.
“Perhaps surprisingly, DopeCoin is already accepted at four stores: ‘Two brick-and-mortar businesses in Europe and two online merchants in the U.S.’
Cryptocurrencies can solve some big problems for marijuana dispensaries that are legal at the state level, but federally illegal…
Because federal law still considers marijuana illegal, traditional banks have shunned the businesses, leaving them unable to accept credit cards or open simple checking accounts. Without secure options, the businesses are largely forced into cash-only transactions, risking safety and raising tax and employee payroll issues.”
Giving dispensaries a more secure way to process payments may lead to increased sales, or an increased number of dispensaries.
5. PotCoin Creators Are Anonymous
The video above outlines the “Silk Road” drug charges against Bitcoin Foundation Vice Chairman Charlie Shrem.
This TechCrunch article notes that the creators of PotCoin operate under fake names. They are known as Hasoshi, Mr. Jones, and Smokemon 514, respectively.
Operating anonymously may help to protect the creators of PotCoin from legal issues.
In the wake of Mt.Gox's insolvency, many tech insiders think that Bitcoin is destined to die in 2014.Click here to read more