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Bitcoin [BTC] and cannabis might meet the same fate, according to market speculators

Ajay Narayan



Bitcoin [BTC] and cannabis might meet the same fate according to market speculators
Source: Unsplash

Tilray INC, a pharmaceutical company and a cannabis producer, witnessed a surge to $200 in their stock price in the month of September 2018. The premium medical cannabis provider had become more valuable than CBS, an American broadcast network, and American Airlines, according to a report by Forbes.

Some of the reasons for the volatility is because the direct marijuana investments are very low and only a few companies in the United States of America publicly trade cannabis. Another major problem for Tilray is the legalization of cannabis in Canada, which has been attracting a lot of investors. Furthermore, Tilray released a small number of shares during its Initial Public Offering [IPO].

These reasons have resulted in a speculation that the price of Tilray and several other cannabis companies might witness a similar price movement to that of Bitcoin. The cryptocurrency’s price surged to $20,000 in the month of December 2017 and following which, it dropped by 60% within a few weeks, affecting many investors. Furthermore, the platforms are usually “deeply misunderstood” and are “mysterious”.

According to the report, Bitcoin and cannabis stocks have few common factors. One of the major differences between them is that Bitcoin was neither a regulated medium of exchange nor was it widely accepted by the general mass. This reason might have instigated the price of Bitcoin to crash.

On the other hand, marijuana had a strong and established market. About 9.5% of adults had reportedly been using marijuana in 2015, which was almost double the rate of usage a decade ago. In addition, reports claim that the usage might increase in the near future with the shifting regulatory policies and softening public opinion.

The volatility of Tilray should not be considered as an act of forfeiture by investors in the cannabis industry, whereas, “it’s more of a reflection of the unique dynamics hovering over one company”. Thus both Bitcoin and cannabis industries are very volatile and are new to the market. They have huge potential for growth but might not necessarily have a huge growth potential. The report added:

“The rewards could be high, but so are the risks, making pot perhaps the ultimate caveat emptor investment opportunity that exists today”

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Ajay Narayan is a full-time journalist at AMBCrypto. He has majored in Economics, Political Science and Sociology. His interests are inclined towards writing and investing in cryptocurrencies.


Bitcoin [BTC] is still going to $100,000, claims Heisenberg Capital’s Max Keiser




'Bitcoin is still going to $100,000', says Max Keiser
Source: Unsplash

CNBC’s Crypto Trader Ran NeuNer, spoke to Max Keiser, Co-founder of Heisenberg Capital on the sidelines of the Magical Crypto Conference and discussed Bitcoin’s current trends.

Keiser said that he was bullish on Bitcoin in the long term, adding that he would be sticking by his “$100,000” prediction for Bitcoin. He stated,

“I never stopped make price prediction… I said it [Bitcoin] was going to a hundred thousand dollars and it was only a dollar and I said that all publicly… it is still going to a hundred thousand dollars”

He added that the timing of when Bitcoin would reach the mark was not important, but that it would outperform every other asset over the next 15 years. Additionally, he said that timing was only for people who were waiting to buy crypto at a better price and “that is a bad way to approach crypto.”

Keiser displayed his enthusiasm for crypto, commenting that, “Stack Satoshis… Stack SATs… you should be stacking SATs.” Giving his opinion on Bitcoin’s recent rally, Keiser said,

“I think that it goes back to when Federal Reserve issued a statement saying that they’re moving the policy to permanent quantitative easing… which means money printing without end. As you know Bitcoin is hard money, like gold, and it is going to respond well to hyperinflation and hyper-money printing.”

Further, Keiser claimed that Bitcoin bottomed when the Federal Reserve announced this a few weeks ago and that this was due to a couple of reasons. The first being Bitcoin’s upcoming halving which highlights the scarcity of Bitcoin. According to Keiser, the second reason was that the sellers were exhausted. All the above reasons, in totality, contributed to Bitcoin’s price rise, claimed Keiser.

Since Bitcoin has already proven itself as a store of value, Keiser remarked that it would be best to concentrate on Lightning Network, a layer-two scalability solution for Bitcoin and improve it as a medium of exchange.

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