What is PotCoin (POT)?
Future of POT Cryptocurrency and know how to buy POT
#1: POT: The Basics
What is PotCoin?
While most cryptocurrencies are just that – electronic currencies meant to be used just like fiat currencies – some have used the blockchain technology to solve real-world problems, and appeal to the needs of a niche user-base. PotCoin is one such coin that was designed to serve the transactional needs of the growing legal industry of cannabis and cannabis-based products.
- PotCoin was launched on the 21st of January, 2014 by three Canadian developers with the pseudonyms Hasoshi, Mr. Jones, and Smokemon 514.
- POT shot into the limelight when former NBA star Dennis Rodman flew to North Korea with the sponsorship of PotCoin.
- It is a fork from Litecoin, with little difference to the underlying code structure, apart from a few key changes.
#2: What are the benefits of PotCoin?
- PotCoin was initially a fork from Litecoin. There were a few key changes made, including a significantly shorter time interval between generation of new blocks, a more aggressive halving schedule, and a higher maximum cap of the number of coins available.
- While initially following a Scrypt based Proof of Work algorithm, it has since switched to a Proof of Stake Velocity (PoSV) algorithm which rewards both ownership of POT coins (staking) and the activity of the client (velocity). The current circulating supply of POT coins is 220,200,630 POT, with a block time of around 40 seconds, and a maximum number of 420,000,000 POT coins.
- The PoSV algorithm means the entire network of mining of POT coins consumes significantly less power than pure Proof of Work based systems like Bitcoin. When a user stakes their coins, they earn an interest rate of approximately 5% annually and also contribute to the security of the blockchain by becoming an active node on it.
- Caters to a niche market – PotCoin was designed to be used as a decentralised, peer-to-peer, and secure transactional medium for all transactions related to the legal cannabis (or weed) industry, including all cannabis-related products. The reason for this was many banks and other financial institutions denying financial services to cannabis dispensaries and other such cannabis related organisations, due to the perceived murky nature of the industry as a whole. PotCoin solves this problem, by giving the cannabis industry its very own cryptocurrency, enabling it to perform transactions without scrutiny and censorship.
- Integration with real-world entities – PotCoin has been integrated into the transaction system of major Canadian marijuana growers and dispensaries.
- Altruistic approach – Medical marijuana patients receive free PotCoin for their cannabis related purchases, upon verification of their prescription.
- Gives back to society – PotCoin regularly holds charity raising events, and gives back to the community by donating to organizations which help forward the fight to legalize cannabis usage and consumption.
#3: How to Buy & store PotCoin?
How to buy PotCoin
- PotCoin can be traded at multiple exchanges such as Bittrex, Poloniex, and Changelly, with Bittrex and Poloniex being the largest exchanges by volume.
- PotCoin can also be bought using fiat currency at supported exchanges, such as Indacoin or PotCointrade.com.
- PotCoins can also be earned as payment for products sold or services rendered.
PotCoin has a variety of wallets, both online and downloadable, on its official website. The PotCoin wallet can also be used to purchase POT coins with fiat currency.
While cryptocurrency exchanges provide you with a platform to buy or sell the POT cryptocurrency, CoinSwitch, the largest cryptocurrency exchange platform, comes in to help you make the right decision by providing the prices for POT on multiple crypto exchanges. With support for more than 140 coins and 45,000 pairs of cryptocurrencies, you can choose whichever pair you want with your token and compare the prices at multiple exchanges. This way, you can choose the best deal for you!
What’s more – with CoinSwitch, you do not rely on a separate POT wallet from the exchange to store your POT cryptocurrency. Instead, all transactions happen to and from your own personal private wallets.
Learn everything about POT coin, before you invest in PotCoin. Understand what is PotCoin how to buy POT coin and the future of PotCoin cryptocurrency
Potcoin Digital Currency
What Is Potcoin Digital Currency?
Potcoin is a digital currency that allows consumers to buy and sell cannabis products anonymously. Potcoin was conceived of as a bitcoin that is used to facilitate transactions within the burgeoning legal cannabis industry.
Potcoin was launched in January 2014 by three enthusiasts online with the pseudonyms Hasoshi, Mr. Jones, and Smokemon 514. The cryptocurrency was created to fill a gap in the legal marijuana industry where regulators and financial institutions were slow in adapting to the economic change that US states were bringing about by legalizing marijuana.
- Potcoin is a digital currency that allows consumers to buy and sell cannabis products anonymously.
- Potcoin provides a banking solution that brings marijuana businesses and consumers together on a decentralized peer-to-peer platform, allowing participants all around the world to make secure transactions.
- Like other digital cryptocurrencies, Potcoin has seen a lot of market volatility. After hitting its all-time high of $1.75 on May 3, 2018, as of Nov. 11, 2020, one potcoin was worth $0.0081.
Growing Need for Potcoin Currency
As of November 2020, there are 15 states where recreational marijuana is legal and 35 states where medical marijuana is legal, including the District of Columbia. The number of states that legalize marijuana for one purpose or another is expected to grow as the states’ legal systems explore the steps to decriminalize and legalize the plant for retail use.
Retail sales of marijuana in the U.S. is projected to hit $30 billion by 2021 and $50 billion by 2026. As a result, the problems of finances in the legalized marijuana industry will also continue to grow.
A Schedule I Substance
Even though some states have legalized marijuana and more are expected to, the plant is still illegal under federal law and labeled as a Schedule I substance. This categorization means it falls under the same category as drugs like heroin and lysergic acid diethylamide (LSD). Marijuana operators and businesses, therefore, cannot utilize the services of banks who are prohibited under federal regulation from conducting business with legal marijuana sellers.
Many cannabis businesses, therefore, operate on a cash-only basis which is inconvenient and highly vulnerable to theft. The statistics presented above on the growing marijuana industry coupled with the cash-only policy of most operators creates a conundrum where marijuana growers and dispensaries need safe and convenient ways to deal with their daily transactions. Potcoin aims to solve this challenge.
Potcoin as a Banking Solution
Potcoin provides a banking solution that brings marijuana businesses and consumers together on a decentralized peer-to-peer platform, allowing participants all around the world to make secure transactions. To start, a user creates a digital wallet which generates a unique public address to receive the coins and a private key to access the funds. Potcoins transferred to a user’s wallet can be used to anonymously buy and sell cannabis products on a global scale.
Like bitcoin, potcoin is an open-source infrastructure, which means that improvements and changes to its code can be made by the currency’s administrators or external supporters. In 2017, potcoin moved away from a mining system like bitcoin to a proof of stake (PoS) system whereby participants earn 5% to 7% interest on their potcoin holdings and transaction history.
As with the value of any medium of exchange, the value of any cryptocurrency like potcoin is directly tied to how much demand it has i.e. how much it is used for transactions. Potcoin does not have a large community behind it compared to bitcoin or Ethereum, and hence, is quite volatile on the crypto market. For example, when it was revealed that potcoin sponsored Dennis Rodman’s trip to North Korea on June 13, 2017, the value of the coin soared 64.35% from $0.1049 to $0.1723 on the same day. (This has proven a pattern, as Potcoin later sponsored Rodman’s attendance at the Singapore summit between President Donald Trump and North Korean leader Kim Jong-un in June 2018).
Potcoin hit its highest-ever valuation of $1.75 on May 3, 2018, and since has witnessed a dramatic fall in price. As of Nov. 11, 2020, one potcoin was worth $0.0081.
Potcoin is limited in terms of what one can purchase with it. Critics claim that this presents a lack of anonymization for the cryptocurrency, even though the currency’s development team claim transactions with the coin are anonymized. The currency’s specific use limits its user base to only marijuana consumers and dealers. This means that if the government decided to round up marijuana dispensaries, they only need to dig out transactions made under the banner of potcoins. The data that would be gotten from the potcoin blockchain would be easier to decrypt since the volume would not be as high as other transactions carried out with the most popular cryptocurrencies.
Potcoin remains a very small altcoin, with a market capitalization of about $1.83 million as of November 2020, and it faces competition from other marijuana-centric cryptocurrencies such as DopeCoin and CannabisCoin, as well as the continued difficulty of operating with a product that remains illegal at the federal level.
Potcoin digital currency allows for anonymous cannabis transactions and started in response to the gap in regulators and financial institution’s slow adaption to the economic change of legalization.