A new era of online cannabis delivery services was born back in 1996 when California legalized medical marijuana. Entrepreneurs were quick to seize the new…
American is buzzing with ongoing marijuana legalization. The industry is set to grow and grow, much like a weed. The current market of all weed sales in the USA is estimated to be worth in the region of $50 billion, a huge figure mostly made up with black market sales. But the slice of this huge pie dominated by the black market is going to be drastically cut as more and more states recognize marijuana as a legitimate substance. In California alone, the weed industry is projected to be worth in the region of $6.5 billion next year, up from previous estimates of $5 billion. The industry is growing, and growing, and growing.
The Wonderful World of Weed
Weed is as close to a cure all in the world of medical science as we are ever going to get. It has been successfully linked to the treatment of cancer, chronic pain, Alzheimer’s, Parkinson’s, Chron’s, Glaucoma, Insomnia, PTSD, Schizophrenia, Anxiety, Depression, ALS, MS, Nausea, Migraines, ADD, ADHD and more. It reduces opioid usage and addiction, reduces road fatalities and accidents when introduced and is very useful for people who are badly suffering from chronic pain. It has been used for thousands of years by indigenous peoples to assist with pain, in particular to ease childbirth. It has much potential in the realm of art and creativity. It is useful for deep meditative sessions or social and recreational events, and can also be used to focus in certain instances. It is a wonderful way to spend an evening with friends while watching a funny movie and many entertaining and hilarious nights have been spent under the influence of weed, with little risk or danger typically associated with other substances. It is an exciting time for marijuana consumers in the USA as they can now enjoy their favorite plant more or less undisturbed. Then there is the obvious benefit of the added revenue. Weed is a huge boon to the economy and creates jobs and employment to bolster the USA. According to Forbes, the marijuana industry will create nearly 300,000 jobs by 2020.
The Not So Wonderful World of Weed
It would seem that nothing can go wrong in the wonderful world of weed. However, this is rather a naive approach. The first mishap is from an investment perspective. Many believe that the marijuana industry is just going to keep growing much like weed itself. The analogy might be a little more appropriate if it included the time, attention, energy, expertise and environment needed over a 3-4 month period in order to generate good yields. Plant a seed in ground and you will most likely be disappointed unless you carefully tend to your plant. The same can be said of setting up a marijuana business. There are an infinite number of hurdles to cross, including actually growing the weed, distributing it and avoiding the coming legislative hurdles as requirements tighten. Over the course of a year, the price of marijuana in Colorado has decreased by 40%. Colorado was the first State to legalize recreational marijuana in 2014. It could be a prime indicator of what is about to happen to other marijuana markets, in particular California. No matter how well set up your marijuana business is, a 40% decrease in the price of weed is going to kill off all except the best businesses with the largest and most liquid cash reserves. And just because the market is growing does not mean you are automatically going to get a slice of the pie. It is still necessary to market your product and constantly innovate. And then there is the issue of oversupply, which is rampant in California as everybody believes that the price of weed is going to skyrocket and needs to get in on the action as early as possible. It does not really matter is there are twice as many consumers if there are 3 times as many sellers, all other variables remaining constant. From a seller perspective, the market has shrunk, not grown.
There are also some social risks associated with weed. The main one is that more and more young people seem to be encouraged to smoke weed at any given opportunity, and weed is incredibly commonplace in school. The danger is that these teenagers lose their edge, their focus and over time their potential with daily use. As wonderful as marijuana may be, it does kill off motivation and it is not appropriate for young individuals who are in the early stages of their development.
The biggest risk posed by marijuana at present is the level of toxins contained in both medical and recreational weed. Many are of the opinion that because marijuana has been obtained from a medical dispensary it has gone through a rigorous process and is toxin free and cannabinoid rich. This is not the case as indicated by many testing facilities. There is no real certification authority for the marijuana produced so people generally take what they are given. The black market is also thriving in some states, particularly California. This black-market marijuana is absolutely toxic and is an environmental catastrophe. Sellers do not abide by any regulations whatsoever and the marijuana is sprayed with chemicals. Streams are often diverted from their original course for ease of use and the aftermath of the facilities results in runoff which gets into animals and sometimes rivers and streams, for maximum pollution.
In other words, marijuana is a wonderful substance when it is consumed in moderation and grown organically with care and attention. When money and greed get involved it tends to corrupt the whole thing. The same can be said of pretty much everything that exists.