US Cannabis Trade Boosts Bitcoin Price
Tim Hockey thinks that Bitcoin and other cryptocurrenies that are connected to legalized cannabis will propel the future of digital currencies to new heights.
“If you look at those two sectors in the quarter we just announced last year, they would have made up about two percent of trade.” he said.“Yet for this past quarter, for the full quarter, they made up about seven or eight percent of trades.”
He noticed that everyone is interested in finding out more about cryptocurrencies and blockchain technology.
“It’s abated a little bit in January, but even if you look at the levels that we’re trading at now, we’re still doing about 975,000 trades a day,” he added.
“That is up from the 726,000 we reported in the final quarter. So that’s in January.”
He says that if you look at all the blockchains, cryptocurrencies and cannabis-related stocks, the number will be just a bit under 900,000, resulting in a great general interest from the public.
Bitcoin- ‘better than diamonds’
Jeff Currie of Goldman Sachs said that bitcoin is even more advantageous than traditional commodities due to its very low cost of production.
“If you think about its ability to be used as gold or precious metals, one thing that separates it from other commodities is it’s very low cost to store and very easy to conceal,” Currie says.
“It’s better than diamonds.”
Will the US cannabis trade have that much of an impact on the future of bitcoin and cryptocurrencies? So far the numbers are supporting this theory, but only the future will tell what the outcome will be.