March 21, 2024
From Vice to Virtue: The Positive Perspective Shift in Cannabis Investing
PERSPECTIVE SHIFT: MEDICAL, SOCIAL AND ENVIRONMENTAL BENEFITS
Now more than ever, investing in cannabis related industries offers strong potential gains for the investor and stands to create a positive medical, social and environmental impact on society. Public leaders, investors, business operators and consumers have forged a trail of evolving perspectives, moving towards a more sustainable and socially conscious financial landscape.
Once seen as a gateway drug into social marginalization, cannabis’ full legalization is currently supported by seventy percent of Americans, and needed regulations are well underway. Medical cannabis is legal in 40 states and adult-use cannabis in 24 states.2
DID YOU KNOW?
The cultivation of hemp dates back to China around 2700 BC and is believed to have then expanded across Asia, making its way to Europe 2000–2200 years ago.1
Public sentiment has swung like a pendulum, guided by the winds of progress. Positive research results have moved cannabis into mainstream, socially acceptable consumption, and increased understanding of the power of investing in the proper buildup of this industry.
Here are three main reasons why cannabis is experiencing a renaissance:
MEDICAL APPLICATIONS
The war on drugs limited our initial understanding of cannabis, but a shift in public perception has broken down barriers. Medicinal benefits are being acknowledged, including managing chemotherapy side effects, addressing chronic pain (reducing opioid addiction), improving sleep and aiding veterans in managing PTSD.3
Other anecdotal benefits are as diverse as bipolar disorder management, anxiety relief and arthritis pain relief. As more research is conducted, these claims will either be proven or debunked and refined. Decriminalizing cannabis allows for such research to take place more easily and officially, increasing access to high quality data and allowing for more informed medical decisions.
SOCIAL IMPACT
The United States holds about 4 percent of the world’s population but 25 percent of the world’s prison population.4 A changing attitude towards cannabis is contributing to a decline in these numbers, as society recognizes the need for a rehabilitative system and legalization leads to fewer possession arrests.5
DID YOU KNOW?
The Puritans brought hemp to New England in 1645 as a fiber source for household spinning and weaving. The hemp industry flourished in Kentucky, Missouri, and Illinois between 1840 and 1860 because of strong demand for sailcloth and cordage by the U.S. Navy. 8
Governments are also realizing the economic benefits and job creation opportunities in legalized cannabis, which lead to increased tax revenue that cannot be realized through illicit trade.6, 7 In 2021, Washington collected $559.5 million in legal cannabis revenue, while Colorado collected $423 million in cannabis tax revenue.
ENVIRONMENTAL AND INDUSTRIAL BENEFITS
Cannabis, especially through hemp, offers a plethora of industrial applications that benefit the environment.9
Hemp can regenerate agricultural soil, improving food production yields. Because it grows quickly and in varied climates, it can be used for carbon capture. It is a less water-intensive crop than cotton or linen, thus it saves water. Moving to hemp paper or fabric production instead of traditional wood pulp and cotton could reduce deforestation and promote sustainable farming.
DID YOU KNOW?
Hemp uses a fraction of the water needed to grow cotton. Every part is useful. It absorbs more carbon dioxide per hectare than other crops and most trees. Cultivated for thousands of years, the eco-friendly plant can be used in food products, biofuels, textiles and even building materials.10
Other industrial uses include hempcrete, a greener alternative to concrete, and even biodegradable plastics.
The reduced stigma around cannabis is opening doors to environmental and industrial benefits far beyond its initial intent.
DID YOU KNOW?
After a hiatus of almost 45 years, industrial hemp production was reintroduced in the United States 2014 Farm Bill through State pilot programs with commercial production beginning again in 2019. 11
EMBRACING CHANGE
The qualitative benefits of cannabis are hard to overlook. Far beyond its initial stigma, the plant offers outsized returns and aligns with goals that reach beyond mere financial multiplication.
As George Bernard Shaw wisely said, “Progress is impossible without change, and those who cannot change their minds cannot change anything.” It seems the changing perception of cannabis is steering us in a positive direction.
SOURCES
1 National Library of Medicine – National Center for Biotechnology Information –
7 Forbes
8 Economic Research Service of the United States Department of Agriculture
9 European Industrial Hemp Association
10 United Nations Conference on Trade and Development
11 Economic Research Service of the United States Department of Agriculture
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