I was thinking about the peg this morning and suddenly it came to me......I think I know how cann will go to parity!
The dev has said numerous times that customers will be able to buy cannabiscoins in their shop, right?
Ok, well think about it......
A customer comes in to buy marijuana, and Deltanine tells him, "you know you can either pay $15/gram for that marijuana, or you can buy cannabiscoins for 10 cents each (or whatever their market price is at the time) and then you can exchange those for cannabis at a ratio of 1 cann = 1 gram"
The guy says, "you mean to tell me that I can either give you $60 for 4 grams or I can give you 40 cents for four grams using cannabiscoins?"
At this point, the customer realizes that it's a no brainer and decides to purchase cannabiscoins. So then Deltanine asks him "how many cannabiscoins do you want.....right now they are going for 10 cents" and the customer says, "I'll take $200 worth"
BAM a $200 buy is put on Bittrex which raises the price and removes 2000 coins from the market.
Now repeat this several dozen times per day at several different Herbal Wellness Center locations and what do you think will happen?
Well, first the price will keep going up and up because now you have outside money coming in to the market from buyers willing to buy coins at any price as long as they are below $15/coin, and second most of the people who buy coins in the shop will never trade them and in fact many will probably lose them eventually meaning each customer that buys cann in store will essentially be removing thousands of coins from the market with each transaction.
If this is the plan (and I think it's safe to assume that it probably is), then this coin is going to parity people!
Up until now I have worried about all the dumpers on Bittrex, but when you start bringing thousands of outside dollars into the market from customers that will be willing to buy coins even at $5 each, then it won't really matter how much people dump because starting on Oct 20 the price will just keep going up and up.....
DAMN this is exciting as hell people!!!
Excellent points you make.
In an ideal world, this would happen.
But think about the real world. Have you approached some one who has no knowledge about bitcoin and tried to sell bitcoins to him!!
You made it sound very easy and I hope this would be the case in near future.
But the customer's first response will be " why are you exchanging 40 cents for 60$ worth" - Too good to be true is very very difficult to sell, especially to people who have never heard of it ever before.
I hope the dispensaries have already bought up enough btc ready on bittrex , in case the demand increases to 1000$ a day
)
I haven't paid much attention to the announcements (my apologies)- but is it anywhere stated how the dispensaries are planning to buy the cannabiscoins for the customers if some on need cann over the counter!!. Will the dispensaries already have cann in their wallets which they already purchased or mined!!
Like in your example- every customer who goes for the cann option will have to wait 15-20 minutes until the dispensary makes the buy on bittrex then make a cann withdrawal to customers wallet and then sell them the cannabis. I see a big queue already- may b the word spreads in the local area and the next day people are sleeping outside the dispensary to be first in the queue- you know like when they have the apple product launch or something
In any case- there are for sure exciting times ahead.
Best of luck to Cann Team - yes we cann
)
Nice to see more and more people share their opinions.
Penn.3D has nailed it quite perfectly but I think davisgreen is not quite seeing the big picture yet!
Now let me enlighten my dear brother davisgreen:
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"But think about the real world. Have you approached some one who has no knowledge about bitcoin and tried to sell bitcoins to him!!"My humble opinion: My success rate has been 3 out of 10 gets interested in Bitcoin, and end up only 1 invests in Bitcoin but the other 2 didn't bother to research further and make their next move.
Now, the golden question is, why is the success rate so low, only 1 out of 10 invested in Bitcoin eventually? That's simple!
These 10 random individuals have lived their life WITHOUT Bitcoin for MANY MANY years and they still function well without Bitcoin, well... can't blame them, Bitcoin only came about in 2009! So they
don't NEED Bitcoin yet. Maybe in future.
The 1 individual that went out to invest in Bitcoin is because he liked the innovation behind Bitcoin and the potential prospect of a very high valued Bitcoin one day, he is hoping for 10k USD. Good luck to him!
Then next question you will ask me is, why would CannabisCoin be different from Bitcoin? Isn't CannabisCoin just another cryptocurrency and isn't it only few months old since it started only in 2014?
My answer will be, yes it is a few months old only and yes it is another cryptocurrency BUT with a twist, unlike Bitcoin, CannabisCoin was designed and conceptualised to decouple from Bitcoin and be less volatile than Bitcoin.
Importantly, CannabisCoin is PEGGED to 1 Gram of Cannabis and Bitcoin isn't! So this is the BIG Difference everyone should remember when comparing CannabisCoin with Bitcoin.
Final question you may ask me, so will you also have 1 out of 10 success rate when you introduce CannabisCoin to 10 random individuals?
My answer will be, no... I won't be introducing to 10 random individuals who have
NO NEED for cannabis at the moment... Instead, I will be introducing to 10 random cannabis patients... People who
NEED Cannabis as medication to live their life normally and with less pain!
So my success rate as such will be much higher than 1 out of 10 for sure... I am guessing more than 80% will be interested in CannabisCoin as a result of my introduction... After all, it saves them money from paying retail price of Cannabis in US$.
*Notice the keyword is, NEED or DON'T NEED. For CannabisCoin, it is a NEED for patients!===
"But the customer's first response will be " why are you exchanging 40 cents for 60$ worth" - Too good to be true is very very difficult to sell, especially to people who have never heard of it ever before."Yes it sounds too good to be true, similarly when Bitcoin was worth less than a cent or a few dollars few years back. But Bitcoin took awhile for people to understand it's usefulness and utility, therefore it took many years for the price of Bitcoin to be where it is today.
Now, will CannabisCoin take a few years too, to get to parity at about US$15? The short answer is NO!
Why NO? Simple... like you said the customer will probably laugh at you when you tell them to buy CannabisCoin at 40 cents and exchange it for Cannabis worth $60. BUT, what if you saw it with your own eyes, the customer RIGHT in front of you, transacting in CannabisCoin which
he bought for a few cents, and actually exchanging it for REAL Medical Cannabis worth US$60? (Using the Cann Peg 1:1 of course and according to the daily limit set by the state law and dispensary limit set aside for Cann Peg)
The first thing that comes to mind is,
IS IT FOR REAL? You asked the customer in front and confirmed it with the staff at the dispensary. What do you think you will do next? Of course you will go research how to buy CannabisCoin or you may be able to buy from the dispensary directly. However, dont expect a good price from the dispensary if you want to buy CannabisCoin from them. But it will still be cheaper than paying in US$ for the Cannabis you need. So where to buy? Of course, it will be MUCH cheaper to buy online from exchange like:
https://www.bittrex.com/Market/Index?MarketName=BTC-CANNhttps://www.cryptsy.com/markets/view/300For those not familiar with crypto and Bitcoin, they will need to find out more on how to go about purchasing Bitcoin first before they make their CannabisCoin purchase. So for some lazy ones or the older folks who can't grasp the latest technology, they will probably just buy directly from the dispensary their supply of CannabisCoin.
Having said that, I don't see that it will take too long to have CANN/USD pairing on both Bittrex and Cryptsy. Only a matter of time!
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"I hope the dispensaries have already bought up enough btc ready on bittrex , in case the demand increases to 1000$ a day )"The likelihood is the dispensaries will be buying up CannabisCoin or may already have, but at the same time, bear in mind that they will be holding ALOT of CannabisCoin from customers who purchased their Cannabis with CannabisCoin.
So if there is crazy demand for CannabisCoin purchase in the dispensaries, they can jolly-well sell them to the customers at maybe US$5 for each CannabisCoin, still cheaper than paying retail price in US$ but far more expensive than buying from exchange.
Therefore, for the tech-savvy, it's always better they buy up from exchange.
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"I haven't paid much attention to the announcements (my apologies)- but is it anywhere stated how the dispensaries are planning to buy the cannabiscoins for the customers if some on need cann over the counter!!. Will the dispensaries already have cann in their wallets which they already purchased or mined!!
Like in your example- every customer who goes for the cann option will have to wait 15-20 minutes until the dispensary makes the buy on bittrex then make a cann withdrawal to customers wallet and then sell them the cannabis. I see a big queue already- may b the word spreads in the local area and the next day people are sleeping outside the dispensary to be first in the queue- you know like when they have the apple product launch or something "The dispensaries DO NOT need to buy CannabisCoins for their customers. The dispensaries probably have stocked up enough CannabisCoin from purchasing directly from the exchange and they will constantly replenish their CannabisCoin supply as they will accept customers' CannabisCoin payment for the CANN Peg.
So there is no need to wait 15-20 minutes for customers who want to use the CANN option as they will probably have CANN already in their Android Wallet, and if they don't, of course the staff will educate the customers on how to download an Android Wallet and transfer CANN from their exchange account to their Android Wallet. If they haven't bought ANY CANN yet and the Android Wallet is empty, they probably can buy directly from the Dispensary and load their Android Wallet with CANN and start to make their purchase.
To sum up everything,
CannabisCoin price will definitely go up, but to get to parity of US$15 or so... it requires MANY non-crypto people to start buying up CANN. And I am particularly referring to
patients, doctors and cannabis industry players.
Patients will be the first because they NEED Cannabis and because they want CHEAPER Cannabis, so they will make the effort to buy CannabisCoin from the exchange. Remember, it's a NEED and not a WANT. Big big difference!