No matter how much mainstream attention it gets and how much it’s normalized, cannabis and the cannabis industry, in general, will always have some stigma around it. We can thank the years and years of politicization and disinformation campaigns for that.
As a result, many people have formed their own ideas about the industry, and in many cases, these are completely wrong. This then leads to negative stereotypes being spread and reinforced. However, it’s important for anyone who considers themself a responsible citizen to know what’s true about the cannabis industry and what is not. Here are some of the most common myths and misconceptions about the cannabis industry.
It’s a Free for All
Far from it. The cannabis industry is one of the most tightly regulated industries in the country, and quite frankly, more should follow its lead. The industry is so regulated that cannabis businesses in some states have to use seed to sale software to track every cannabis product from a seed all the way up to when a finished product was sold. You won’t find too many industries where this type of control is enforced and required.
It’s an Unbanked Sector
This one is tougher because there’s some truth in there. While many cannabis-related businesses may have difficulty finding banking or payment processors, it’s far easier than it ever was, and many financial institutions are now catering to this group specifically. Over 400 chartered banks in the country offer depository services for cannabis businesses. However, it’s still easier for larger companies to get depository services, and the industry is still in need of other financial services as well as growth capital.
Prices will Fall
There’s also this idea that cannabis is in a price bubble and that prices will eventually fall. But cannabis isn’t in a green rush pace. Instead, it’s on a steady growth trajectory. There might be some oversupply issues here and there, but the prices will eventually stabilize, and there will be a consensus in the market.
The Current Winners will Always be on Top
How many times have we seen early market leaders sink into complete oblivion? What we should be looking at in the market are fast followers – those who can quickly innovate and improve while having a deep understanding of the people they serve. Apple is a great example of a fast follower in many of its product categories.
So, we shouldn’t expect that current leaders will always be on top based on market capitalization alone. The truth is that many of these companies are being traded at much higher rates than their current revenue, and many will never reach their promise. Those who stay focused, move slowly, and build core business strength are those who will eventually emerge on top.
These are just some of the most pervasive myths surrounding the cannabis industry. Whether you’re an investor, aspiring entrepreneur, or member of the general public, it’s essential that you stay up to date on the industry and all the recent developments, so you can have an informed opinion.