A gold investor, a programmer, and an avid cannabis user walk into a bar. They don’t have much in common, but because of the growing horizons on the business front of retail cannabis; there might be an agreement that can be reached between these three demographics.
Locally, the individuals that strive to better the outcomes can influence an economy by setting a higher standard. However, loss of faith from the investors caused by market disruptions such as the one we are experiencing currently, can potentially threaten the dollar as a dominant currency. A centralized currency such as the dollar has a seemingly inevitable collapse, with many nations choosing to use a more decentralized currency, like gold.
In cities like Denver, gold mining companies such as Barrick Gold often set up a base of operations for distribution and white-collared jobs. Some of the lesser known companies, such as Amagi Metals are beginning to inspire a new horizon for gold. Gold has been given new value with technology; much like it has with technological components. Amagi Metals is the largest cryptocurrency retailers in the world, and specifically with Bitcoins, and also is one of the few retailers to buy precious metals with Bitcoins. The credibility of these Bitcoins lies in the philosophy of the decentralization, which is that local markets are highly influenced by global markets, such as the LIBOR Rates. If a local market would want to benefit from this, it too, can become a kind of bank for this cryptocurrency, and participate in the growing market. In consideration of this, the complete opposite needs to happen in order for the markets of capitalism to compete with national trading.
Satoshi Nakamoto is accredited to being the creator of this cryptocurrency, but Nakamoto himself is still shrouded in anonymity, making the origins of the Bitcoin to be equally as mysterious. It is clear in what comments are authored by Nakamoto that he shows great skepticism over centrally controlled currencies. His solution was a brilliant use of programming code to fundamentally change the way currency should work. It is not clear that Bitcoins will work, as it continues to be a volatile currency. The rise of the Bitcoins is comparable to the volatility of the currency used by the colonies of the United States. Many currencies existed, and could be different for every state. When a national currency was created, it had to compete with these currencies along with the value of the currency itself.
The Bitcoin, in fact, has surprised some analysts on the buoyancy of the value. A major use of the Bitcoin was called the “Silk Road.” This was a website on the deep web that allowed vendors of illegal items to remain completely anonymous. The customers would pay in Bitcoin so the transactions could not be traced. On October 3rd of this year, the FBI shutdown the website, yet the Bitcoin recovered from the misfortune almost a day afterward.
Cannabis and cannabis products are facing the dilemma of centralized coercion as well. Recently, Colorado Gov. John Hickenlooper and Washington state Gov. Jay Inslee stated in a letter to banking regulators on the federal level to allow for access to banking for the cannabis markets. A decentralized currency could not be influenced by politics or the money behind it, and could shelter an emerged market. The issue that arises is that the United States has established a front against Bitcoin retailers, such as Mt Gox, stating that there were no licenses used to trade Bitcoins.
If legal cannabis markets such as in Colorado and Washington want to take full advantage of this situation, it would be wise to place their investments into precious metals. Due to the overwhelming discouragement, local markets will have the option to create their own economy altogether. Areas like marketing and advertising, finance and accounting, public relations, and banking can all become a homegrown operation. Precious metals can be traded between these markets and national markets, and the possible use of decentralized currencies can be used between the local markets. The benefits of this would inspire for a completely sovereign cannabis market, one in which could not be controlled by the actions of value manipulation, and one that a gold investor, a programmer, and an avid cannabis user can all agree on.