5 Reasons Pot Stocks Gets the Nod Over Cryptocurrency

Ah yes, marijuana — the only plant that made the jump from an intensely negative connotation to a lucrative, thriving industry — pot stocks. If sustainability is the future, then marijuana is our George Jetson. What has rivaled the absurdly-large gains of cryptocurrencies recently? That’s right, marijuana. With an average gain of 300% in the past 12 months across the board, marijuana has certainly been intriguing investor’s for a while now.
Sure, Bitcoin and Ethereum may have had larger gains overall. But, the big difference is that marijuana is being utilized as medicine, and 29 states in this great country have been right on board.
The legalization of medical marijuana nationwide seems inevitable, with recreational marijuana following not far behind. So that begs the question: Why invest in pot stocks instead of cryptocurrencies?
Here are 5 reasons why you should consider it:

1. Volatility

If you are like most people, then you love volatility. However, the volatility in cryptocurrencies is essentially unmatched. Nothing fluctuates the way cryptocurrencies do.
Do we know if a crash will happen? No. Do we know if the price would jump back up? Certainly, we know nothing for sure. But at least the government has already recognized pot already and seems to be moving towards legalizing it nationwide.

This would potentially increase the market cap by billions.  With momentous gains of 300% in one year  – and essentially no pullback — the pot stocks trajectory seems to be everything we want.

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2. Market Timing

If you heard that it wasn’t too late to get involved in cryptocurrencies, you may be wrong. After the Bitcoin split, we seemingly may never have a cryptocurrency that totally agrees with its direction. The price may slightly rise, but for continuous large gains, you may have waited too long.
That is where marijuana comes in — only 29 states have legal marijuana — 29. That’s over half. Once you see how lucrative it may become (think alcohol industry level) there’s is nowhere it could go but up.
Within the next few years, this investor believes that marijuana will outdo cryptocurrencies. If you got into cryptocurrencies in 2014 or 2015, great. But if you didn’t, pot stocks just may be your silver lining.

Related: 5 Companies Making Cannabis-Infused K-Cups

3. The Government’s Becoming Okay With It

What are cryptocurrencies? A digital currency that is traded purely over the Internet. There are no tangible bitcoins. For me, I like to invest in things that the government puts its stamp of approval on. Sure, not the entire government, but a sufficient amount of its decision-makers.

I honestly have no idea how long cryptocurrencies will stick, or if the government will try banning it from being used. Or better yet, if it will ever become mainstream. The likelihood of them being utilized by an entire country seems unlikely.

Sure, I think they’re here to stay, but we haven’t seen anything in stocks like what marijuana is doing since the tech bubble. The gains are significant because the government is recognizing it as an industry, rather than an individual digital currency that threatens the global economy.

Related: Is Jeff Sessions a Big, Scary Name to Fear In Marijuana Stocks

4. Risk

The greatest hockey player of all time, Wayne Gretzky, once said that, “You miss 100% of the shots you don’t take.” This is true. However, when it comes to investing, it should be taken with a grain of a salt. Some investors like minimizing risk while others thrive on that next big gain — regardless of how risky it may be. Cryptocurrencies epitomize the ladder.

One thing that everyone agrees with is the necessity to identify risk. We want to know what it is, even if it’s a lot. The fact that billions of dollars have already moved, from the black market to the regulated markets, proves that the risk factor on marijuana stocks has been essentially depleted. Every year it proves to be more globally accepted, making it a less risky investment.

Why marijuana instead of cryptocurrency? The fluctuation and volatility of cryptocurrencies have showed just how unsure the world is about these digital currencies. The idea is right, but how can they implement it safely? Will it eventually be banned? Will it be hacked? One thing we know for sure is that legal marijuana can’t be hacked. It can’t be stolen and taken control of online. It’s a physical product. And the only physical product that has rivaled cryptocurrencies in gains in the past few years.

Related: 3 Pot Stocks to Watch in the Month of August

5. Recovery

All positivity aside, marijuana has had some setbacks. As with any relatively new industry, its kinks need to be worked out. Things such as pesticides, product recalls and transportation issues have hurt marijuana stocks. However, these are all minor inconveniences. This investor loves setbacks, and believes that these kind of easily-fixable issues will result in even larger gains.
Cryptocurrencies are still widely flawed. When the price of bitcoin takes a massive step back, we have no idea if it will even back — the government wants nothing to do with it. It has very little backing. If it fails, no one will think twice. The government has a personal stake in marijuana. Legalizing it has the chance to bring our entire country out of debt. This is why the government will not let it fail.
They want it to succeed just as much as the average investor. So whenever you see a setback, or a price drop, know that it’s temporary. That’s why I’ve made the choice to choose marijuana stocks over cryptocurrencies.

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