Potcoin – Not Just for Pot Smokers
Potcoin (POT) was released in January 2014 by 3 businessmen from Montreal, Canada nicknamed Hasoshi (derived from combining hash, which is a powerful Marijuana extract, with Satoshi who is the founder of Bitcoin), Mr. Jones, and Smokemon 514. The Potcoin genesis block was at exactly 4:20 pm, which is the most popular time in the day to smoke marijuana. The goal of Potcoin is to be the cryptocurrency of the $100 billion per year and rapidly growing legal marijuana industry.
Legal marijuana is a new concept in the United States, and while it has been gaining traction, there are many legal pitfalls when selling or buying marijuana. This makes a decentralized cryptocurrency like Potcoin very useful for marijuana vendors and consumers. With this coin, money can’t be frozen or seized, unlike with centralized payment methods like credit cards and banks where the bank has complete control to stop a transaction for any reason. This gives vendors peace of mind that they won’t lose their money when using this coin.
Hard to Seize Money
Even cash isn’t ideal for a marijuana vendor. since the police or IRS can raid their business and seize the physical cash. Whereas with Potcoin, the money doesn’t exist physically and is secured with cryptography, so it is quite difficult even for the police to seize it. Also, this coin provides users with anonymity, so there’s no way for anyone to find out that they have been purchasing marijuana, let alone how much they have been buying and where they are buying it.
Initially, Potcoin was basically a copy of Litecoin and used the Scrypt proof-of- work (PoW) algorithm, where mining machines including CPUs, GPUs, and ASICs secured and maintained the network by cryptographically hashing transactions into blocks. In 2015, the coin switched its algorithm to proof-of- stake velocity (PoSV). This is similar to Reddcoin, where users earn POT and secure the network just by keeping their coins in a wallet connected to the coin’s network. There were initially 420 POT rewarded to miners per block, but this has halved to 210 coins per block. There will be a maximum supply of 420 million POT.
Potcoin Might Be Worth Looking Into
There are currently 220 million POT in circulation, and with a value per POT near 11 cents this yields a market cap of $25 million. This is the highest market cap out of any marijuana themed cryptocurrency, and the 251st highest crypto market cap overall. Daily trading volume hovers between $500,000 and $1 million, indicating that Potcoin use is quite widespread, and it is fulfilling its goal as being a cryptocurrency for the marijuana industry. Considering the explosive growth of the marijuana industry, as legalization increases across the United States, combined with the explosive growth of cryptocurrency, it is probably a good idea to keep some POT in your portfolio.
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