Where To Invest Right Now: Crypto or Cannabis?

Let’s say you have a spare US$10 million to invest right now.

But, there is a catch.

You have to invest it all. And, you can only invest it in either crypto or cannabis.

Which one would you choose?

CBI Insights recently ran this poll on Twitter…and the vast majority chose cannabis, as you can see below.

CB Insights poll regarding opinions on cannabis

Source: Twitter

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They sent the results of this poll along with an email with the headline ‘crypto is over’.

We don’t think cryptos are over by a longshot.

In fact, lets run our own poll.

What would you rather invest in, cryptos or cannabis? I would love to know. Send me a line to cs@portphillippublishing.com.au.

But what CBI Insight’s poll highlights is the fact that the cannabis industry is starting to go mainstream.

You see, while cryptos are in the eyes of the regulators, cannabis is seeing a wave of legalisation. It has mostly been on medicinal marijuana.

The US, Australia, Uruguay, Canada, Israel and Germany, among others, have legalised medicinal marijuana. Even Thailand, one of the countries with the strictest drug laws, is looking on legalising it.

Medicinal marijuana could open the doors to also legalising recreational cannabis.

Medicinal marijuana has been legal in Canada since 2001. It is now the second country in the world to legalise recreational marijuana after Uruguay did so in 2013.

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Marijuana stocks could skyrocket after this

Canada is looking to start sales very soon, next week in fact. On 17 October.

In the US, while it is illegal on a Federal level, you can see marijuana has seen a wave of legalisation in different states.

Cannabis programs by USA states

Source: US National Conference of State Legislatures

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Adult use is currently legal in 9 states in the US, but there could be more states added to that list during the US midterm elections this November. Michigan and North Dakota are looking at legalising recreational use and Utah and Missouri on medicinal marijuana.

According to recent research by Pew Research, six in 10 Americans support legalising marijuana. As you can see below, support for legalisation has doubled in the last 18 years, with millennials leading the trend.

CB Insights poll regarding opinions on cannabis

Source: Pew Research

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Marijuana is already making headways in the health industry.

Yet, as a recreational drug, cannabis could become as big as the alcohol industry…it could even rival it. And much of it could come from consumer products…like the beverage and edible sector.

In fact, some pot companies are already looking into this space.

As Bloomberg reported:

Forget the ol’ puff, puff, pass.  Marijuana producers are betting an increasing number of people would rather pour a drink infused with pot.[…]

[C]ompanies are already jockeying for position in the potentially lucrative beverage market. Although edible products, which could include hard candies, beverages, ice cream and baked goods, won’t be legal for at least another year, there’s been an “explosion of interest” in them, and six out of 10 consumers will probably choose to consume edible products.

Yet it is not just marijuana growers that are eyeing the opportunity. Beer companies are also looking at this new opportunity as beer sales slow. You see, it turns out millennials are not that keen on beer.

From American Craft Beer:

According to the Beer Institute, consumers picked beer less than half of the time when deciding on an alcoholic beverage in 2017. Beer was the choice of only 49.7% of drinkers, quite a drop from 60.8% heights of the mid-1990s. And America’s most iconic beer brands are feeling the pain.

Just last week a flurry of Big Beer Q2 announcements came out and the majority of them reported declines in the US with huge flagships being hit especially hard. […]

On top of Constellation Brands big announcement last October that it had taken a 9.9% stake in Canadian marijuana producer Canopy Growth, it’s becoming increasingly clear that Big Beer companies are now looking beyond beer to cannabis-infused drinks and nonalcoholic options to appeal to Millennials and Generation Z who are abandoning beer, and to shore up their bottom lines.

And even large beverage companies like Coca Cola are already reportedly watching this space closely as they see a decline in their sugary drinks sales.

The beverage Coca Cola is planning is more of a wellness beverage. One using cannabidiol (CBD), a non-psychoactive ingredient that helps with anxiety, inflammation and pain.

As marijuana acceptance keeps growing, we could see more money and companies flow into this space.


Selva Freigedo,
Editor, Markets & Money

PS: There has never been a better time to invest in cannabis. And, according to editor Sam Volkering, the largest ‘legal drug deal’ in history could be happening very soon, in only six days. To read all the details click here.

Selva Freigedo is an analyst with a background in financial economics. Born and raised in Argentina, she has also lived in Brazil, the US and Spain. She has seen economic troubles firsthand, from economic booms to collapses and the ravaging effects of hyperinflation, high unemployment, deposit freezes and debt default. Selva now writes from her vantage point here in Australia. She is lead Editor at the daily e-letter Markets & Money. And every week, she goes through each report and research note produced by our global network of trusted advisors to find the best investment opportunities for you in Australia and overseas. She packages these opportunities for you in Global Investor.

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