When the legalization of marijuana went into effect, the collective head of the state was undoubtedly pleased at the prospect of a new industry growing so fast that it would soon be able to rival the state’s traditional economy. The story of the marijuana industry is one of great growth and the promise of a bright future. By now, the cannabis industry has certainly proven that it cannot be stopped, and the great future of the industry is now in the hands of some of the brightest minds.
I think I am finally coming to terms with my personal feelings about the recent surge in interest in marijuana. My first reaction was probably something like this: “This is great. More people to talk to about the plant, more people to share ideas with. It’s time to take this industry and this plant to the next level and we can make it better for everyone involved.” But as I look around at the people flocking to the doorways of dispensaries, growing and selling whatever they can get their hands on, the thought gradually sinks in that I may have set myself up for a bit of disappointment.
Cannabis (or marijuana) has been illegal in the United States for over 80 years, but that hasn’t stopped millions of people from succumbing to the “cannabis craze” and entering the “joints” (as they are called by the media) business. The Federal Government has even funded “cannabis research” and “cannabis policy research” for over a century (see the work of Harry Anslinger and Harry J. Anslinger ), and the paradigm has remained almost the same throughout that time. Most of the studies have been done by the National Institute on Drug Abuse, which is funded by the federal government. I have even written. Read more about cbd stocks to watch and let us know what you think.
Medicinal, culinary, tobacco – whatever the use, cannabis has been in the news a lot lately.
Cannabis is the most widely used drug in the world. According to a June 2018 report by the European Monitoring Centre for Drugs and Drug Addiction (EMCDDA), more than 24 million people use it in Europe. Three quarters of consumers are between 15 and 34 years old. And although cannabis has been proven to be addictive and harmful to health, it has become so popular around the world that it has been legalized as a recreational drug in some countries.
Green gold, as it is called today, is not only a medicine but also a source of profit in tourism, medicine, cosmetics and many other industries. While there are real public health issues associated with the legalization of cannabis, there is excitement, enthusiasm, and even euphoria about the potential market.
Research on the cannabis industry shows that in a healthy competitive market, prices fall, product quality rises, violence declines, and fair trade replaces illegal transactions. With new research regularly revealing the potential benefits of the plant, the stigma of medicinal and recreational use is giving way to a demand for a quality product.
History of legalisation
The production and sale of cannabis was first legalized in Uruguay in 2013. To combat illicit trade in this well-known drug, the country decided to establish a state monopoly to provide cannabis at lower prices and of better quality.
Canada legalized it in June 2018 with the majority approval of Bill C-45, which allows for the use and production of marijuana across the country. This was a campaign promise by current Prime Minister Justin Trudeau. And with this yes to cannabis, Canada became the first member of the G20 and G7 to open its doors to the recreational use of drugs (medical or therapeutic use was already allowed in 2001).
Nine of them – Alaska, California, Colorado, Maine, Massachusetts, Nevada, Oregon, Vermont, Washington and the District of Columbia – allow cannabis for recreational use. Thirty other states allow marijuana for medical purposes. But it remains illegal at the federal level.
While in one state, Vermont, consumption is allowed by law, other states have decided to do so by referendum, for example. B. California, where Proposition 64 (or the California Marijuana Legalization Initiative) received 57.13% of the vote in November 2016.
There is a lot of money in cannabis
Gone are the days when home gardeners hid behind the vegetable garden to grow cannabis for their own use. With cannabis being gradually legalized in several countries, this is whetting the appetite of investors and brokers who see it as a lucrative source of investment.
Cannabis has become an increasingly important target for investors over the past three years, largely due to rapidly changing legalization and global opinion.
Currently, 25 countries, including developed economies such as Australia, Canada, Uruguay, Mexico, South Africa, Switzerland, Israel and Turkey, have legalized all or part of the market for recreational or medical drugs. And this list is expected to grow even longer in the coming years.
So far, the market is mainly concentrated in the United States and Canada, but there is also movement in Europe.
According to the Franco-American Bank of Commerce, the global legalized cannabis market could reach $145 billion by 2028, up from $12 billion last year.
Andrew Howard, head of sustainable investing at Schroders, said: There are two types of companies investing in the cannabis industry: start-ups specializing in this market and, increasingly, large consumer goods companies looking to diversify their product portfolio.
On Wall Street, the growing interest in the marijuana industry has led to an impressive movement of marijuana startups, such as Tilray and Canopy Growth, whose shares have experienced steep ups and downs in recent months.
Although California only recently legalized the purchase and consumption of recreational cannabis, dispensaries are making inroads into the market.
Mike Tyson, a former boxer, bought several acres of land in Southern California to grow the plant, as did rapper Snoop Dogg. Bob Marley’s children were also involved. In short, the sector is experiencing explosive growth.
Possible disadvantages to consider
But there is some hesitation – after all, to legalize all uses, you need concrete results.
What appears to be a triumph for the policy of decriminalization and legalization of cannabis also confirms the obvious failure of the war on drugs.
In addition, health-related factors must be taken into account: Cannabis impairs brain function, reducing judgment, concentration and short-term memory, as well as the ability to perform normal tasks.
Moreover, according to the US government agency NIDA (National Institute on Drug Abuse), cannabis use does to teenagers what alcohol does not: It causes irreversible brain damage, including decreased IQ.
While the cost effectiveness of the drug is undisputed, its growing popularity as a recreational drug raises an important question: Do we want to make the same mistake with cannabis as we did with alcohol and tobacco?
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