Or is it? Considered one of the first plants to be cultivated – cannabis – made quite a journey. It started from being used as raw material for ropes and was discovered to have medicinal purposes. Later on, it got banned and flagged as a drug, went back to being known for medicinal purposes and lately it became recreational.
Whether you call it marijuana, cannabis, herb, grass, Mary Jane or pot, you should know that WEED made it in the financial markets. And it’s making quite a fuss. Some market analysts even went as far as calling it the “The asset of the moment” or even “the new Bitcoin”. But will it be just a bubble, or stay true to its trend?
Before you start investing in this asset you should probably know a couple of things about its background in the US, Canada, and Europe.
The land of all possibilities takes down the marijuana wall
Currently, 30 US states legalized the medicinal cannabis – nine of which also legalized the recreational use. Whereas, 21 decriminalized the use of marijuana. The seeds of legalization in the US started with California, back in 1996. It was then followed by Oregon, Alaska and Washington.
Just 12 years later, Colorado and Washington became the first two states to legalize recreational cannabis. By now, seven other states joined them in legalizing recreational marijuana, the latest being Vermont (2018).
Canada joined the marijuana party and legalized recreational use and almost run out of it, four days after. A shortage of stamp glue needed for ordering cannabis caused a marijuana shortage. Canopy Growth Corp. that prides itself to be the first publicly traded cannabis company in North America, has taken quite a hit in its shares price when this news reached the markets. It lost about 10CAD, during the intraday trading session.
Europeans battle between rope and smoke
Countries as UK, Ireland or France, along with nine other European countries consider both, medical or recreational marijuana to be illegal. Currently, Malta is the only EU country to have legalized medical marijuana.
11 European countries view marijuana as illegal, but decriminalized it. Italy, Belgium and Netherlands share with Switzerland the idea that possession might not be a criminal offense, but could be fined, or punished with a short jail time.
On the other hand, Denmark, Finland, Germany, and Poland treat marijuana as illegal but often unenforced. Meaning that various types of medical marijuana can be legally purchased with a prescription. It could also mean that possession of a small amount, which can vary from six to 15 grams – from country to country – might not be punishable.
Keep in mind that some of the EU countries, even though see marijuana as being illegal, but decriminalized or unenforced, continue growing the medicinal herb mostly for research purposes.
The medical use of marijuana still remains highly debated. Many online videos show its almost sudden effect in treating Parkinson, or Amnesia. Patients often requested marijuana for treating or ailing pain. It may also be recommended to treat some of the following:
- Muscle spasms caused by multiple sclerosis,
- Nausea caused by cancer chemotherapy,
- Poor appetite and weight loss due to chronic illness (HIV, nerve pain)
- Seizure disorders,
- Crohn’s disease.
How to deal WEED under the strict eye of the law
Marijuana plays an important role in the economy of the countries that legalise it. Market analysts are calculating the money economies are wasting by not doing so. What is also interesting about cannabis, is that you can trade it from every country. Even if retail is not yet legalised.
Trade safe, and always remember: CFDs are complex instruments that come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts, lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.