What is Potcoin and How does it Related to Marijuana?
There’s a huge interest in the cannabis industry ever since Colorado legalized marijuana in the state. Colorado has attracted different individuals ranging from “medical cannabis refugees” to curious tourists, all looking for the best pot.
Following Colorado’s move, there are other states that have taken a stand against pot prohibition caused by the United States’ Federal Law that declares all forms of cannabis illegal.
For decades, cannabis remained federally illegal in the US. Cannabis has long been declared a Schedule 1 substance. By placing cannabis as a Schedule 1 substance, this means that it has no medical value and is highly addictive. Among the drugs in this category include heroin, LSD, and ecstasy.
The federal law against cannabis is putting businesses in a precarious situation. This means that businesses involved in the cannabis industry can’t even open a bank account or get a loan. In addition to this, for security reasons, it also becomes tricky since they can’t even process credit card payments and have to accept everything in cash.
Enter PotCoin into the picture. What exactly is Potcoin? PotCoin is a peer-to- peer cryptocurrency that aims to become the standard virtual currency for the legalized cannabis industry.
This virtual currency is an open source project that has been released under the MIT/X11 license. In fact, it was identical to Litecoin until August 2015 when PotCoin shifted towards PoSV (Proof of Stake Velocity) which is a mining algorithm developed by Reddcoin.
How is Potcoin Managed?
PotCoin is not managed by a central authority and offers a decentralized solution for the transfer of value. And because of its involvement in the cannabis industry, it has been gained media attention from Fox Business to Vice and TechCrunch.
Released at exactly 4:20 pm on January 21, 2014, PotCoin was released hoping to be adopted by the growing cannabis industry. Its developers go by the nicknames of Hasoshi, Mr. Jones and Smokemon 514. Just a week after its launch, mining pools became interested with PotCoin.
By January 30, 2014, a newly launched exchange house named Cryptorush allowed trading between BitCoin and PotCoin.
The first merchant to adapt PotCoin was Chronic Star Medical, a company that supplies cannabis foods. By the end of March, PotCoin was added to three other exchange houses.
By April 9, 2014, the development team of the cryptocurrency revealed their identities for the first time when its co-founders and developers Joel Yaffe and Nick Iverson delivered a talk at the New York Cryptocurrency Convention.
Should I Buy or Trade Potcoin?
Should you invest in PotCoin? Is it really worth your attention considering the many other altcoins out there that could give you a potential profit in the near future?
First, let’s take a closer look at PotCoin’s history from 2014 to 2017. By May 22, 2014, PotCoin sunk their market capitalization to $244,000. It has recovered on July 1, 2017, reaching an all-time high market capitalization of $1,860,000 after PotCoin ATMs became available for use in River Rock Wellness dispensaries in Colorado.
By 2015, the original development team decided to go their separate ways and left for various reasons. And in order to keep PotCoin running, PotLabs which is a group of people that helped develop various things for PotCoin during its infancy decided to take charge of managing PotCoin. And it was a good move after all.
In that same year, PotCoin made its move towards the use of a PoSV algorithm. Initially, many issues surfaced over the next few weeks after its transition. A lot of cryptocurrency exchanges froze their PotCoin wallets to wait and see what was about to happen. Fortunately, they were able to solve the network speed problems allowing normal transactions to resume.
Now, considering the $100 billion global cannabis industry, a lot of people might give PotCoin a shot. What it offers is a banking solution especially considering cannabis is still federally illegal in the US.
However, looking at its past three years, it might raise some eyebrows. However, despite the lack of commitment from its developers that left PotCoin in 2014, you can’t deny that PotLabs is doing what it can to keep the cannabis virtual currency strong. It has even sponsored Dennis Rodman when he visited North Korea.
How to Buy Potcoin Online - Step-by-Step Guide:
1 - Before discussing how to buy PotCoin, let’s first figure out how exactly does it work? First, you will need to have a digital wallet either on your computer or your mobile device. This makes PotCoin easy to send and even purchase anything using the virtual currency. Consider your wallet as your bank account to secure your PotCoins.
First, you will need to register on PotWallet.com. Upon signup, you get a free and secure online PotCoin wallet
2 - There are two options how you can buy Potcoins using Potwallet.com. One, you can buy PotCoin online using your online banking or cash deposit. Also, you can choose to buy PotCoins face to face with a seller. From Potwallet.com/trade/buy, you’ll be able to see which seller is trying to sell their PotCoins.
You will be able to choose from different payment methods that are accepted by sellers. It also shows the limits how much you can purchase.
3 - Before you meet or complete the transaction online, it is also wise to check the trader to confirm if he or she has a good reputation score displayed beside the username.
4 - Once you’ve done the necessary checks, you can send a trade request to the trader. The reason why it shows results of traders based on region is in order for you to allow to simply do cash trades.
You can agree on the meeting place and time. Also, you can opt to do an online trade wherein the seller provides payment details once the trade has been opened.
5 - Once the transaction has been done, you can then click “Mark Paid”. On the part of the seller, he or she then releases the agreed Potcoins and it becomes available in your PotWallet account.
Hot to Buy Potcoin with Credit Card
Visit changelly.com. You will be able to find the best rates for USD and other cryptocurrencies when buying PotCoin. You will be able to use your Visa and MasterCard in the website to confirm the Transaction.
How to Buy Potcoin with Paypal
As for buying using PayPal, things can become a bit tricky. Once the transaction has been reversed by the buyer, the seller will have no protection whatsoever. And for this reason, you can’t purchase PotCoins directly using PayPal. If you really wish to use PayPal in buying PotCoin, you will have to make sure that you first buy some BitCoins using PayPal.
1 - Go to Virwox and deposit the money to your account using PayPal.
2 - Buy SLL using the USD exchange.
3 - Once you have the newly purchased SLL on your account, you will then be able to buy Bitcoins on the SLL/BitCoin exchange.
4 - Withdraw the BitCoins.
5 - Go to Changelly.com and use your BitCoins to purchase the desired number of PotCoins.
How to Trade Potcoin
Trading PotCoin is pretty much straight forward once you are in possession of BitCoin and other virtual currencies. There are websites such as bleutrade.com that allows trading BTC and POT. Bittrex, Poloniex, and Cryptopia are other exchange houses that have allowed trading PotCoins with BitCoins and other virtual currencies.
As of November 8, 2014, 91.7% of PotCoin’s trading volume came from Cryptsy accounts. By 2017, Poloniex already accounted for the 83% of the trading volume while Bittrex is still expected to get to 16%. In addition to this, there are also websites that allow local trading of PotCoins. Here, you can even meet personally and exchange cash for PotCoins.
But of course, to minimize the chances of loss, it is important to know more about the nature of exchange houses and the issues that affect PotCoin.
It is imperative to check which virtual currencies are accepted by the exchange houses. There are those exchange houses that have limited options when it comes to virtual currencies that you can trade for PotCoin. It is also important to check the fees involved in your transactions.
And just like trading other virtual currencies, it is also a good idea to take a closer look at the order book. The order book gives you an idea if the exchange house is typically used by other virtual currency traders. The higher volume of orders would mean that the exchange house is a credible venue to trade coins with other investors.
In addition to this, you also want to know just how long should you wait to get the coins. Do they have it with them in Escrow? Or should you be waiting for hours?
Also, there are instances wherein exchange houses are not offering a locked in pricing. This means that your purchase can still be affected by the changes in price before you get your coins.
And lastly, you still have to do some research. It is important that the exchange house has been
reviewed by other virtual currency traders. If you can’t find a review or feedback online, you can ask for advice on forums.
Future of Potcoin Trading
Let’s admit that the cannabis industry has grown over the last few years. It has turned into a billion dollar industry that generates taxes and benefitted a lot of individuals especially those that are looking for cannabis medical care.
Are we nearing the end of cannabis prohibition? If you will ask leading experts in the cannabis industry, this is still far from happening. Cannabis removed from Schedule 1 substances is trickier than what most people think.
Enter a cryptocurrency designed for the cannabis industry. In concept, a virtual currency designed for cannabis businesses is a good idea.
For instance, since cannabis is Schedule 1 substance, businesses can’t have credit card transactions or even have a loan. This means that they’ll have to spend their own resources and investors’ money in order to run their operations. In addition to this, they also pay a large chunk of money on security in order to ensure that they don’t become vulnerable to robbery.
Given these realities, PotCoin offers a solution to the industry given their banking and transaction woes.
However, let’s take a closer look at what PotCoin really is. Should you be optimistic by investing in PotCoins?
In order to assess its future, let’s look at things objectively. First, let’s take a look at the supply of PotCoins in the market. The total maximum supply of PotCoins is at 420 million.
Unlike BitCoin that is limited to 21 million and Dash that only has 22 million, there is an abundance of PotCoins in the market.
For an investor, this alone makes PotCoin look bad. This only means that there could easily be a surplus of the virtual currency in the market. Thus, don’t expect the value to reach the $3,000 mark per PotCoin in the future similar to the success of BitCoin.
In addition to this, how exactly can you take the original development team of PotCoin seriously? Quitting during the infancy of the virtual currency wasn’t a good sign. Fortunately, PotCoin was then handled by PotLabs and made the necessary changes that evolved PotCoin’s algorithm to PoSV.
On the bright side, PotCoin is doing its best in order to gain mainstream acceptance and hopefully more investors. For instance, they’ve sponsored Dennis Rodman’s trip to North Korea, not to mention they’ve paid for the Snoop Youth Football League in support to Snoop Dogg who is a notable figure in the cannabis industry.
In reality, the future of PotCoin remains uncertain. For instance, why not use Bitcoin and other more popular altcoins instead of PotCoin? In fact, the majority of cannabis businesses haven’t adopted PotCoin yet. There are not too many merchants accepting PotCoins.
These are just some of the things that you may want to consider before you even buy PotCoin or trade your BitCoin for this altcoin hoping for a quick buck or two. However, if you are a prime believer of cannabis, why not take your shot? The good news is that PotCoin is way cheaper than other altcoins.
You can easily tolerate the loss and can even gain from a sudden rise in price.