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Cannabis Legalization

Legal cannabis has been gaining traction across the globe as a result of high demand among consumers of every adult age bracket. Just recently, Canada made headlines as the first G7 country to make recreational cannabis legal. Currently, there is growing support for the legalization of recreational cannabis here in the United States. According to a poll released in 2017, at least 64 percent of Americans were in support of the legalized cannabis. So far, at least 9 states have made recreational cannabis legal, while 30 states have legalized medical cannabis.

Medical cannabis is increasingly becoming a major alternative to common pain relievers, especially opioids, which are known to have fatal side effects. In 2017, the medical cannabis market saw a growth of 349.1 million dollars. As more people get to learn about the advantages of cannabis over the forecast period, there will be a substantial growth of up to a compound annual growth rate (CAGR) of 36.2 percent.

The Future of Cannabis

With the sale of legal cannabis in North America up by 33 percent in August 2018 alone and close to 550 percent within the last three years, the possibilities of an ongoing boom in the next five years are high. This is something that could be brought about by legislative reforms across more US states. In fact, the prohibition of cannabis in the US may come to an end in the next five years.

2018 could perhaps be the year that has given the industry a reason to be highly optimistic. First, the world’s fifth largest economy, California, permitted recreational cannabis shops to open in January. In Massachusetts, retail stores were opened for legal business in July and national sales are expected to go beyond one billion dollars by 2020.

Expected Surge

With the increasing number of cannabis companies in legal operation, the variety of products expected to reach the end user will increase. More so, the high investment on research for the development of safer products such as vapes will reinforce the growth of the market positively. Despite current cannabis prohibitions in the US, in 2017, the marijuana industry saw a 31 percent growth rate. It only goes to say that the ongoing legalization by individual states will  increase the demand for marijuana to about a 22 percent compound annual growth rate.

More and more states’ voters are showing their support for legislation that allows for the legal sale, ownership, and use of a pre-specified amount of marijuana; in most instances, this legislation also allows for the operation of government-approved marijuana dispensaries. Marijuana users have been generally pleased with legalization, as have many business professionals, who have been eager to see the financial byproducts of a $30 billion industry on local economies.

With that said, not everyone has been satisfied with the economic effects of marijuana legalization. Specifically, homeowners in small towns and cities that are affected by legalization commonly voice concerns that home values are being /will be negatively impacted.

Opponents of legal marijuana who center their arguments on economics believe that, amongst other things, the pot industry pushes potential homeowners away, which in turn decreases demand for an area’s houses and causes their average value to plummet. Some individuals have gone as far as saying that the marijuana industry results in lower demand for all property, commercial, residential, and otherwise, and that the economy sags in response to this weakened demand.

The numbers say otherwise, and in actuality, legal cannabis plays a tremendous role in boosting residential and commercial property values.

When the facts and data behind legal marijuana are examined, it’s not difficult to see why the industry is such a boom for homeowners and local economies in general.

First, it must be emphasized that legal cannabis is, in pure terms, a industry. When a large store or vehicle-production plant opens in a town or city, most residents are overjoyed, as more jobs and opportunity will be available as a result.

In that sense, the legal cannabis industry is no different. Countless professionals will be needed to grow, maintain, cultivate, transport, weigh, market, and sell marijuana; employees are also a must for dispensaries, pot tourism businesses, edible companies, and much more. Thus, a massive influx of cash will be afforded to residents of cities and towns that are affected by cannabis legalization, in the form of wages.

These wages will then be used to purchase homes, modernize and upgrade existing homes, and build brand new homes—all of which will aid the average value of the residential market.

Next, residential property values adjust to demand; when more people want to live in a certain place, prices rise. Thus, it’s more expensive to live in New York City than it is to live in, say, Fargo. (That’s not to say that Fargo isn’t beautiful and awesome, because it is!) But when more employees, business owners, and visitors start pouring in because of legal cannabis, existing residents can expect demand and prices to rise. And don’t worry—it takes at least several decades to see a city or area evolve into New York or Silicon Valley, in terms of demand!

For those who live in neighborhoods wherein cannabis has been legalized, remedial economics render the possibility of increased home values a likely reality.

Last but certainly not least, legal marijuana boosts residential values just because. That’s right—a bunch of small factors compound and made a big difference in many legal-pot towns, including those in Colorado and Washington. More tax revenue, less crime/better medical care (as a result of optimized emergency services), marijuana entrepreneur investments, and more—things which are entirely unaffected by housing demand—have increased home values in Colorado by an average of six percent.

It’s hard to argue against free money!

Due to the increasing legalization of marijuana, the use of technology in the industry is becoming bolder and more relevant in production, sale, and consumption. Additionally, as more people are embracing the benefits of marijuana, more technology companies have been emerging nationwide. With the proliferation of technology, the cannabis industry is expected to grow significantly in the coming years. Below are different ways in which technology is impacting the industry.

Technology in The Cultivation

Although marijuana has been found to provide a lot of benefits, there is lacking reliable information on how to grow the plant. Since cannabis was illegal for many years, cultivation was confined to smaller-scale operations and involved a lot of secrecy. However, the involvement of technology is becoming beneficial in the cultivation of the plant.

Recently, machine learning has been infiltrating into almost every aspect of human lives. One of the fascinating technologies in cannabis farming is virtual reality and artificial intelligence. The best part is that the technologies are affordable even to small home growers. Artificial intelligence is eliminating the hard part of maintaining the plant through an automated monitoring system. Sensors and cameras are used to monitor the pH levels, temperature and light to provide individualized care for each plant. AI technologies significantly reduce labor and therefore cut down cost. The grower is only required to plant the seed and will be notified when the plant is ready for harvesting.

Lab Testing Technologies

Initially, it was difficult to identify the various strain and composition of compounds in the cannabis plant. However, technology has provided tremendous assistance in cannabis testing, and consumers can make better purchasing decisions. In fact, improved testing is crucial in the production of medical marijuana to offer patients specific therapeutic effects. Although the testing requirements vary with different states, there are specific procedures that are common in the industry. For instance, High-Performance Liquid Chromatography (HPLC) has been the most widely used technique in testing the levels of CBD and THC, which are the two most common cannabinoids.

Unlike other industries, there are no specific guidelines and regulations on the testing methods of marijuana. This can lead to a lot of inconsistency in the potency data and composition of the cannabinoids. However, testing is crucial to ensure safety for the consumer.

Mobile Applications in The Cannabis Industry

Mobile apps are providing smartphone users with a lot of conveniences. Due to the rapid advancement of technology, applications are developed daily. There are several mobile applications that target cannabis users.

MassRoots is one of the most significant mobile apps in the cannabis industry. It is a social networking platform where users can share content, read the news, and interact. Recently, the platform has been gaining popularity at a rapid pace, and it is now estimated to have over a million users. Furthermore, various dispensaries have linked with the application to provide an enhanced experience to the users.

Green Bits is another application that is changing the marijuana industry. It is a point-of-sale (POS) software for marijuana retailers that provides an improved way of making and tracking sales. The application is cloud-based, making it easier to scan products, monitor the inventory, and track sales. Interestingly, it can be integrated with other cannabis applications such as Leafly and WeedMaps.