Now that marijuana is legal to grow, sell, and consume in most states and many global countries, it seems like pot is taking over the world! Well–almost. And that’s awesome news for weed enthusiasts. In fact, the popularity of recreational and medicinal marijuana has inspired blockchain professionals and digital markets to offer weed non-fungible tokens (NFTs) to individuals who “highly” enjoy their weed.
So, now you might be scratching your head and wondering what the heck is a weed NFT? Is it the same as weed crypto? Can I get rich by investing in weed NFTs?
Let’s first differentiate between a non-fungible token and cryptocurrencies like Bitcoin, Ethereum, or Tether.
5 Facts About NFTs
- Each NFT is unique. No two NFTs are alike. Think of an NFT as a one-of-a-kind work of art you commissioned an artist to create exclusively for you. However, this artwork exists as open code called C++, an object-oriented code language.
- Data associated with a particular NFT is digitally deposited on a blockchain.
- Although NFTs utilize blockchain technology, they are not a form of cryptocurrency. You can buy NFTs with cryptocurrency, but you cannot purchase things with NFTs.
- Buying an NFT means you can provide digital (but not tangible) proof that you actually own the NFT.
- Ethereum is the most popular blockchain for storing NFTs. Ethereum also stores fungible (cryptocurrency) coins.
5 Facts About Cryptocurrency
- Bitcoin, Tether, Ethereum, and thousands of other cryptocurrencies rely on cryptography (encrypted code) to establish monetary values and authenticate transactions occurring on a blockchain. All transactions are public and can be viewed by anyone with access to a “public ledger”.
- Obtaining cryptocurrency coins without purchasing them with real money involves a process called mining. A cryptocurrency miner needs special computer equipment and the ability to solve highly complex mathematical equations.
- You can use cryptocurrency to buy NFTs
- You can buy just about anything with cryptocurrency (clothes, cars, airplane tickets, you name it).
- You can trade one cryptocurrency for another.
In other words, both NFTs and cryptocurrencies have digitally-acquired monetary value but value that is assigned in a totally different way. For example, the value of an NFT mostly depends on its uniqueness and demand within a specific community, such as the community of marijuana aficionados. Cryptocurrency like Bitcoin gets its value primarily from supply/demand metrics, investors, the amount of energy required to mine cryptocurrency, and the complexity of blockchain equations.
Ready to Get Your Weed NFT Collection Started?
By now, you’re dying to know where and how to buy weed coin crypto NFTs, right? Well, we’ve got that covered.
First, here’s a brief guide to buying NFTs:
- You’ll need to buy Ethereum (ETH) cryptocurrency as most marketplaces offering weed NFTs only accept ETH.
- Transfer ETH to a digital wallet. You’ll find digital wallets available from PayPal, ApplePay, Venmo, Google Wallet, and Dwolla.
- Visit an NFT marketplace offering weed NFTs.
- Purchase a weed NFT with your ETH. Your NFTs can then be accessed via your digital wallet.
That’s basically about all there is to it.
Now, where are the best cannabis NFT marketplaces?
Investing in Weed NFTs: What the Experts Say
Like any other painting, sculpture, or drawing, how much value the artwork holds depends on how much people are willing to pay to own it. The same logic can be applied to NFTs. If somebody creates a unique line of weed-themed NFTs and offers them on an NFT marketplace, their value will be determined by the demand for them.
Investing in NFTs is no doubt risky. But, even crypto experts have no idea whether the market for digital art tokens will remain viable over the next several years. It’s the people who make, sell, and invest in NFTs who hold the fate of NFTs.
What About Weed Crypto Coins?
Unlike weed NFTs that can only be used for trading or selling purposes, weed crypto is a cryptocurrency specifically developed to complete transactions involving cannabis. For example, DopeCoin (DOPE) facilitates the purchase of their own digital currency (you have to use Bitcoin to trade for DopeCoins) to provide a secure, alternative method for buying cannabis.
Hempcoin is similar to DopeCoin, allowing consumers, distributors, and cultivators of marijuana to perform various transactions involving pot using their cryptocurrency called $THC
Calling its cryptocurrency the “marijuana Bitcoin”, CannabisCoin is another digital payment solution for cannabis merchants, retailers, and dispensaries. CannabisCoin also claims their marijuana Bitcoin can be more affordably mined than regular Bitcoin or Ethereum using “consumer-grade” computer hardware.
Weed crypto coins to invest in depends on whether you are involved in growing, selling, and/or buying cannabis. Weed crypto coins cannot be used to buy NFTs or other items.