The Cannabis industry has been discretely but unstoppably evolving, and perhaps the most substantial barrier behind that discretion is neither legal nor financial but cultural. Despite the progress of modern society, there is still a stigma on cannabis that the American community has not yet been able to overcome.
However, in recent years, this industry has turned many entrepreneurs into millionaires —and even billionaires. Besides, not only have entrepreneurs managed to benefit from this venture, but many experienced and novice investors have also generated considerable profits from an industry that has grown from nothing to billions and is expected to outperform massive competitors such as beer, wine, and tobacco.
What is CBD? Is It a Drug? Is It Legal? Why Should I Invest on It?
If you still have doubts and think you're investing in a "drug," perhaps it is essential to clarify why this business is entirely legal.
Cannabis has two main variants: Cannabis Sativa (Marijuana) and Cannabis Indica (Hemp). One is legal, and the other is not. Why? The answer lies in the chemical properties of both plants: Marijuana produces a lot of THC and little CBD while hemp produces low THC and a lot of CBD.
THC is a psychotropic component that causes the highs associated with the consumption of Marijuana. CBD is a medicinal component that helps to heal various ailments. THC is well known; CBD is almost unknown. THC is slowly winning the legal race against some legislators whereas CBD doesn't really needs that kind of race.
Despite your position, there is one thing that is not going to change: Money does not care about chemistry. The cannabis industry is growing whether you like it or not. And the government considers most products based on this industry to be legal whether you like it or not.
Here you can see Donald Trump signing the “Agriculture Improvement Act of 2018” which states that THC-free CBD oil is legal in all 50 states of the United States. This means, that hemp-based products are federally legal (But beware, some states are still not 100% cbd-friendly)
Why You Should Keep an Eye on Cannabis Stocks
The cannabis stock market has many similarities with the crypto market. Companies have small capitalization (compared to traditional markets), stocks tend to be very volatile and hype-driven and attract non-traditional investors.
The reason behind this could be the youthfulness of the industry and the accelerated growth resulting from favorable legal, economic, and cultural conditions.
This market, however, is perfect for taking risks with a certain level of confidence. While cryptocurrencies offer excellent opportunities for expansion, these small-cap stocks offer significant upside growth potential, which is very difficult to achieve by mature companies with large market capitalizations. Also, these stocks are not as susceptible to being manipulated by whales as a crypto investment.
In fact, it is becoming easier to see how Cannabis shares are traded on major exchanges rather than on the OTC market. Some of the most important stocks listed on the Nasdaq can be seen in this chart.
Also, there are even some cannabis-oriented cryptocurrencies! If you are into alts, some of these may grab your attention
What Makes CBD So Special?
And if the fact that the Nasdaq has listed some CBD Companies is not enough to arouse your interest, maybe the properties of the CBD will help you:
- Anti-nausea and antiemetic
- Reduces the appetite for heroin, cocaine, and alcohol
Also, CBD is used to treat some diseases and problems such as:
- Neurodegenerative diseases (e.g., Alzheimer's, Parkinson's, Multiple Sclerosis)
- Chemical dependencies
- Autism spectrum disorder
- Chronic inflammatory diseases such as chronic polyarthritis, Crohn's disease, inflammatory bowel disease
- Accompaniment of chemotherapy
- Antitumor treatment
If you want more information about five interesting products made from hemp, visit this article. Maybe it will surprise you and make you a little curious.