One major effect of this is that weed stores will be able to use banks and payment processors legally once the regulators catch up.
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Also, it doesn't seem like it would be that hard to find someone to accept it as payment, since they can convert it to cash too. And the sort of landlords/suppliers/employees willing to do business with a dispensary seem like exactly the sort who would accept Bitcoin.
If you're going through all that hassle, it's much easier just to be a cash-only business in the first place.
Keep it in a safe somewhere undisclosed instead of a retail storefront everybody knows is holding a ton of cash, or spend it.
The point is that it moves the cash from the publicly visible location to somewhere nobody knows to rob.
I show up and convert cash to bitcoin, presumably losing some of its value to exchange fees.
Pay the merchant my bitcoin, who then has to convert it back to cash losing more of its value to fees so that he can pay all of his staff, suppliers, utilities, etc...
Why not just skip the bitcoin step and save time and money?
That's why I specified "for the consumer", who is typically the person that is going to make a purchasing decision.
Using crypto for dispensaries has been tried, and it hasn't gained traction in the many years that its been an option. If you introduce friction (by forcing people to transact using a novel payment form), you are going to lose customers. The fact that the very few dispensaries that accept crypto continue to accept cash and debit should tell you what consumers like.
https://bitinfocharts.com/comparison/transactionfees-btc-eth...
"Unsound ponzi scheme" could just as well be applied to any fiat currency. It has all the same rules (early entrants are more privileged in "the game" and can invest to out-perform younger players). It is very odd to hear people applying such qualitative judgments like this when the alternative is a currency that is actively debased by its issuers. Or do you think the inflation we've all suffered under isn't a problem?
L2s fix this (~immediate settlement, cents in fees), but it's another layer and another account for users to manage (which is annoying).
It takes the same amount of time to make change for the consumer as the store. Or more, because now you have to wait while they make change for the person in front of you, then for you on top of that.
And nobody wants to be at a store which is more likely to get robbed. Not only do you lose your cash, you could lose your life.
> The fact that the very few dispensaries that accept crypto continue to accept cash and debit should tell you what consumers like.
There are multiple consumers. If you can get half of them to use Bitcoin, you have half as much cash on hand to lose in a robbery, and on top of that half as much incentive for someone to rob you to begin with.
Crypto scams are... completely unrelated? It's like being worried about using a bank account because there are ponzi schemes that use bank transfers.