Should I Invest in Hemp or Cannabis?

Cannabidiol (CBD) products have become very popular in the last few years. And depending on where you live, you can find them in your local drugstores, pet stores, local gas stations, etc. The only thing that is spreading faster than the popularity of the Cannabidiol is confusion about the plant that it comes from. Whether you are already a user of it or just thinking about consuming some CBD products, you should know more.

Should I invest in hemp or cannabis - image for article 111111How Marijuana Got Banned

Well, have you ever heard of marijuana? Of course, you have. This is one of those products that has been around for thousands of years. And before you start thinking that history was full of junkies, think again. Most ancient cultures didn’t grow it to get high but as a herbal medicine. Some sources say that people from Asia started using it around 500 BC.

The history of marijuana cultivation in America goes back to the early colonists. They grew this plant for textiles and rope. However, some political and racial reasons led to the criminalization of marijuana in the U.S. This made almost all other countries do the same. The main reason for this was the high level of tetrahydrocannabinol (THC). This is the chemical responsible for marijuana’s mind-altering properties. But, you should know that this was not the plant that was first used in Asia.

The plant that originally evolved in Central Asia had very low levels of THC and it seems like those ancient cultures knew about the psychoactive properties of the plant and may have grown some species to produce higher levels of THC to use them in healing practices and religious ceremonies.

Cannabis or marijuana has a high level of THC. It is psychoactive and banned in most countries of the world. Investing in it is profitable, but there is another, safer way to invest in cannabis – the hemp plant.

Why Hemp is a Safer Investment 

Hemp is a term we have been using to classify varieties of cannabis that do not have any psychoactive properties. We have been harvesting this plant for the industrial use of its derived products.

Humans have been using this plant to manufacture clothes and ropes for over 10,000 years. Many believe that hemp was the first crop ever cultivated by mankind. We can use it to produce food, rope, clothing, housing material, paper, soaps, fuel, shoes, diapers, and many other finished products.

All the products that come from the hemp plant are legal in most countries of the world. You can’t say that for marijuana. That is why it’s much safer and more profitable for your business to invest in hemp.

Selling CBD online - image showing chemical formulaThe 2018 Farm Bill

Cannabidiol or CBD comes from the hemp plant and marijuana. However, the profitability of the hemp plant has skyrocketed since December 2018, when the federal government passed the farm bill. This document removed hemp (defined as cannabis with less than 0.3% THC) as Schedule I controlled substance and made it an ordinary agricultural commodity. This opened a market that Brightfield Group estimates will reach $22 billion by 2022.

The same research said that the global industrial hemp market will grow from USD 4.6 billion in 2019 to USD 26.6 billion by 2025.

Ever since that farm bill went through consumers have been getting to know the true power of the hemp. People are starting to realize that hemp offers many health benefits. This plant is a great source of omega-3 and omega-6 amino proteins and amino acids. These nutrients are awesome for your heart, mood stability, insulin balance, joint, and skin health.

Marijuana vs Hemp – What is the Difference?

Hemp and marijuana stand as two primary species of cannabis Sativa plant. They are both strains of the Cannabis Sativa species. To translate this for you, hemp and marijuana are the same plants.

They look and smell the same. However, there is one big difference in THC levels. The hemp plants contain no more than 0.3% of THC, the psychoactive substance you can find in marijuana. Cannabis plants with more than 0.3% of THC are all marijuana.

What Does this Mean to You as a Potential Investor?

Investing in hemp is a much safer option for the people that are thinking about investing in cannabis. If you want to invest in something, you probably want no restrictions. Well, marijuana is illegal in most countries of the world and this is not good for the industry’s growth.

I am not saying that the rest of the world can’t legalize marijuana as soon as tomorrow, and over the long term, the marijuana market could explode in size, but that is still a… mere possibility. You can’t make responsible decisions based on possibilities. You make your business decisions based on facts. And the fact is that hemp is a safer option for investors. It is that simple.

Choose Carefully

You should look at the investor relations websites of the company you are considering investing in. You should be able to find the answers to all the questions you have like: “Does that company grow marijuana (or hemp) and how much?; How does the company stand against the rivals?; What is their long-term strategy?; Is the company profitable? If not, why not?; How much experience do they have?; Which geographic markets are they targeting?

You should also keep an eye on the latest news in cannabis trades. This market is still very young and changes may come extremely quickly. And if you are new in this, start with a small investment.


Interesting related article: “What is CBD?