The separate markets of bitcoin and marijuana have both presented a very solid investment market over the course of the past several years. Although both differ greatly, there are many similarities between the two that market analysts have been looking at in recent times.
The stock market has performed very well over the course of the past five years with gains somewhere around 79%. Given that the average annual return is around 7%, this number shows how positive growth has been in the market. Investors have been looking for new markets to invest in as more traditional growth options may not grow as quickly in the coming years. Looking at the stocks market, options such as marijuana continue to come up presenting new opportunities for those looking to grow their portfolios. Another option that has come up in more recent times has been that of bitcoin.
Cryptocurrency has been an investment that is very volatile given how much fluctuation the prices have. The market is very much based on speculation which can often be a good thing, but it can also lead down to some extent. With bitcoin showing massive returns in the past year or so, many investors have decided to leave some of the more traditional markets to get into that of bitcoin. With a market that is continuing to grow on a daily basis, it is no wonder that the market cap has grown so much.
Many investors who are looking for not-so-traditional ways to invest their money have in turn gone to marijuana stocks. The industry on cannabis has presented a fantastic opportunity for those who have chosen to get in with some of the top stocks in the space growing by double or triple in the past year alone. Some stocks in the space have even grown as much as 1,000% over the past year or two. One of the questions within a market that is growing so quickly is how well it can sustain this growth. Although the answer to this question is not so simple, signs are pointing to the fact that the market will continue to grow greatly given that many countries have not reached their full potential in the space. With countries like the U.S. working to make the substance federally legal for not only medical use but recreational as well, it seems like interest in the market is only continuing to grow.
One of the biggest reasons to invest in the marijuana industry is the amount of untapped potential that has yet to come in. One of the leading analyst firms in the space, ArcView has stated that weed sales could grow as much as 28% during the next two to three years, growing to almost $25 billion in legal sales. With this amount, the industry on cannabis looks like it may end up becoming one of the larger market within this country and abroad.
The similarities between the markets of bitcoin and cannabis are quite apparent. Both markets are undeniably new in the space of investing, and both have to meet some challenges before they reach their full potential. One thing is undeniable though and that remains how much potential they have as a market for the near future. The only thing that is holding both of these industries back it legislation that needs to occur for them to continue growing. Only time will tell how well these markets can adapt to the changing legislation, and how big they can grow in the future. The next few years remain incredibly interesting for two markets that have only just popped up recently.