Risk off mode seems to be setting in as equities continue to come for sale. Retail sales and weak bank earnings are some of the excuses for the market weakness. The S&P 500 suffered a decline of 0.59% to 2,011.
Cannabis stocks are facing dwindling participation. However, today was a “low volume levitation” kind of day. The MJIC Marijuana Index and Benzinga 420 Marijuana Index rose by 0.4% and 3.9%, respectively.
Daily Positive: A little self serving, but our interview with CannaInsider is a great listen! Also, CannaInsider has a bevy of excellent interviews with other folks steeped in the cannabis market, so be sure to check out the archives, if you haven’t already.
Daily Negative: Is it productive information to tell investors that you spent their money by doing a roadshow and eating at Ruth Chris Steakhouse? Especially since there was no information about actual contracts signed, just talk. You can’t make this stuff up! Thanks Totally Hemp Crazy, THCZ, for some comedic relief on this lousy market day.
We take umbrage at the comparison of the cannabis industry to Bitcoin, as it happens a lot. We do not consider these areas to be the same or similar, except that people might consider them both as aggressive investment categories.
Generally, we see a great deal of difference between the two. The cannabis industry is a tangible industry, one with a great deal of physical demands and output. Bitcoin could not be farther from tangible if it tried. This also means that the cannabis industry creates jobs and these new careers are in the United States. What jobs has Bitcoin actually created of impact, especially state-side? Cannabis is adding millions of dollars in tax revenue to states with strained budgets, helping to support school systems and other depleted areas. What has Bitcoin done to improve society?
In fact, while everyone is quite aware of the black market associations of cannabis, which the industry is trying to move past, are they as aware of such associations for Bitcoin? The cryptocurrency has historically been used best in the dark net, which is almost too scary to discuss, but this is the place where weapons, financial data, humans, exotic animal parts and illicit drugs are trafficked internationally.
At any rate, the cannabis industry is doing its best to become a more investor-friendly industry and to actually grow companies who produce and deliver on their plans. Therefore, we need not be compared to Bitcoin, which is dealing with its own issues: Bitcoin’s price declined 15 percent yesterday and 20 percent today to $181.45, its lowest level since October 2013, according to CoinDesk’s Bitcoin Price Index, an average of bitcoin prices across leading global exchanges. Bitcoin’s 58 percent plunge last year already made it one of the biggest money-losing investments of 2014, worse than oil or the ruble.