What is Cryptocurrency?
Cryptocurrency is a type of digital payment that can be used in the exchange of goods and services. Unlike using other online payment methods like debit or credit cards and apps like PayPal that are all synced to your bank account, cryptocurrency represents digital tokens that you can purchase allowing you to have more freedom and less restrictions.
If you have done a Google search for cryptocurrency before, it probably sounded complicated and a bit difficult to understand. Because cryptocurrency is supposed to make your life easier, we are going to explore what cryptocurrency is and how it is used for purchasing marijuana in simple terms so that you can feel confident and comfortable with crypto.
Let’s explore an easy explanation for cryptocurrency. Have you ever gone to an arcade? Usually, you’ll need to exchange your cash for token coins that you can use specifically for the establishment’s arcade game. Think of cryptocurrency, as the digital form of a tangible token. You can also compare cryptocurrency to poker chips.
If you have ever been to a casino, you know that you are required to exchange cash for poker chips to be used in their venue. You know that those poker chips still hold value, as when you cash in your winnings you receive back the dollar value of your chips. Cryptocurrencies are like arcade tokens and poker chips, you exchange your cash for the crypto currency value in order to purchase online goods and services in venues that allow the use of digital currencies.
Did you know that you can use cryptocurrency to purchase marijuana? Yes- you can use cryptocurrencies like Bitcoin via online dispensaries such as Kushfly which is based in Los Angeles and delivers cannabis discreetly to your door in 45 minutes or less. There is a huge cannabis cryptocurrency market out there because customers prefer spending their digital dollars on marijuana flowers with trusted marijuana companies like this one.
Why the need to use cryptocurrency to purchase marijuana? Due to federal regulations, even if your state allows marijuana use for recreational or medicinal purposes, some banks flag these purchases and make it difficult for consumers to process their orders. Because of the risks banks take when it comes to allowing their customers to make cannabis purchases they either disallow the sale, shut down your bank account, or if you are lucky they tax a hefty fine of up to 6% per sale. Even if you can find a bank that will allow you to make your legal-by-state purchase, you are still stuck with a hefty tax and prone to potentially having funds frozen.
Are Cryptocurrencies Illegal?
In the United States, as well as many other countries, cryptocurrencies are legal. Because it is legal, the IRS will count it as income just as any other source of revenue. The Internal Revenue Service coins crypto as a “virtual currency” which you may have seen on this year’s 2024 tax form.
Although when Bitcoin first emerged it was noted for some users applying it to illegal transactions, today more competition has surfaced requiring major companies like Bitcoin to amp up their protection and security for users making it a safer form of transaction. Although it is safer to use, that doesn’t take away the freedoms you have to use your Bitcoin for your desired transactions.
Why Are Cryptocurrencies So Popular?
When you hear someone becoming a millionaire for little to no investment, that is bound to gain international attention. When Bitcoin was first created in 2009, one Bitcoin cost $0. It took over a year to hit the $1 mark and by 2011 it cost $32 for 1 Bitcoin. 10 years later in July 2024, one Bitcoin’s value increased to $33,549.60.
Investors looked at virtual currency as a way to expand their portfolio and many people walked away with millions of dollars. The Bitcoin community is full of successful, energetic, and positive people who love talking about Bitcoin and helping new investors. Thanks to the advantages of using cryptocurrency, many investors have become very wealthy people.
Advantages of Using Cryptocurrency
The solution to this problem? Cryptocurrency like Bitcoin. With cryptocurrencies, you become your own bank. The fees are minimal and you no longer have to worry about being censored or not having access to your own funds. There are little to no transaction costs unlike most banks. You have 24/7 access to your own money. You have no limits on purchases or withdrawals.
Banks require a lot of paperwork and time during the work day in order to allow someone else to receive access to your funds if you choose, but with cryptocurrency you are given the freedom to use your money with any person without any hoops to jump through. International transactions are also not only easier, but they are a lot faster without any waiting periods.
You might be wondering- are cryptocurrencies safe? Cryptocurrencies work using blockchain technology in order to securely manage and track transactions, making them a trusted source for online purchases. They are also known to eliminate double-spending.
Purely online transactions don’t appeal to you? Cryptocurrency has even evolved past being used solely for online transactions. With products like Bitpay emerging you can download your own app which will allow you to track your Bitcoin purchases with your own tangible BitPay prepaid Mastercard essentially turning your Bitcoin into cash. This option allows cryptocurrencies to behave like gift cards that you can purchase for yourself and use online where those forms of payments are accepted.
Because of the many known advantages as well as the freedom of no centralized banking or international borders, more merchants and customers worldwide are getting on board with Bitcoin. Because of the ever evolving nature of cryptocurrency, some economists theorize that within the next decade cryptocurrency will hold 25% of national currencies. Cryptocurrencies give you the comfort of knowing your cannabis purchases will be processed, secure, and a lot more affordable allowing you to expand your online shopping experience.