Is the Potcoin Community Facing Issues with PotWallet?

PotWallet, a wallet service for Potcoin seems to be facing some issues. According to updates on social media, few users were unable to withdraw their crypto-tokens from PotWallet.

The apparently unhappy Potcoin community has alleged that PotWallet doesn’t have enough funds to enable withdrawals. With the cryptocurrency exhibiting increased volatility in the recent days, those who have their Potcoin deposits in PotWallet seem to be unable to leverage the market opportunity.

The issues affecting PotWallet and thereby leading to the inconvenience, is not clear yet. But available information suggest that the digital currency wallet is manually processing all withdrawal orders. In few cases, PotWallet has asked its customers to contact customer care to resolve the withdrawal issues.

It is believed that PotWallet is moving Potcoin from its hot wallet to secure storage and whenever somebody requests a withdrawal, the required sum will be moved to their mentioned address. On the other hand, some suspect that PotWallet may have invested the deposits into trading with an intention of making profits.

In the absence of concrete information, there may be multiple reasons behind the alleged issue faced by PotWallet users. Few possible scenarios include technical and security issues. Until the platform makes an official announcement, one can’t jump to conclusions.

However, the platform’s customer support seems to have been helpful in few cases. It is also worth noting that that PotWallet launched its new application for Android and iOS powered devices. While the app is still in its beta version, it may have contributed to the issue as well.

Amid growing complaints, NewsBTC has reached out to PotWallet and awaiting a response from their team. Any updates received from them will be shared with the readers. Meanwhile, those who are facing issues with the wallet should contact customer support either through the contact form or a new live chat feature enabled on the website.

Ref: PotWallet | Reddit | Image: NewsBTC

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If cryptocurrencies like Bitcoin, Litecoin, and others, are too volatile for you, then maybe its time to look out for safer coins.

Accepting the fact that Bitcoin and other cryptocurrencies have an inherent volatility risk, creative crypto-thinkers are working on numerous projects to create currency standards which will be backed by physical commodities such as gold, marijuana, and urea.

The online marketplace to buy and sell precious metals such as gold and silver, Anthem Vault is planning to launch a gold-backed crypto-coin, the HayekCoin in May. Since it will be backed by gold, users can redeem it for 1 gram of gold at the market price, and the company is promoting this as the USP.

Cryptocurrencies backed by gold have been gaining strong traction. Nofiatcoin, the gold and silver-backed digital currency launched last year, has managed to stay strong—even during the 80% crash in Bitcoin price. Nofiatcoin is actively traded and has witnessed a remarkable jump from its launch price of $1 to near-$18 on April 1.

nofiatcoin urocoin potcoin cannabiscoin bitcoin altcoin

Among the most interesting cryptocoins are the ones backed by medical-grade cannabis and fertilizers.

CannabisCoin is a cryptocurrency which is backed by 1 gram of pharmaceutical-grade marijuana. This currency has found active attention from the trading community on the cryptocurrency exchange Bittrex.

Another commodity-backed cryptocurrency which has been seen as a substitute for the volatile Bitcoin is Uro Foundation’s UroCoin. This coin is pegged to the value of 1 metric ton of widely used fertilizer, urea.

Co-chair of the global payments practice at renowned law firm Manatt, Phelps & Phillips Carol Van Cleef expects over 2000 cryptocurrencies in the future.

We may end up with over 2,000 cryptocurrencies. And some will be commodity-backed,” he says.

Professor of Finance at Duke University Campbell Harvey sums up the whole development in simple words: Bitcoin is too volatile which is why alternatives are springing up.


Cannabis based cryptocurrency Potcoin had an impressive week in the USD markets, where its climbed around 75% amid a notable buying volume.

Price Movements throughout Last Week

As you can see the CoinGecko chart below, the POT/USD closed at 0.00117 on Feb 18th last week, after crashing from its intra-week peak level of 0.00137. The aforesaid closing point acted as a strong support to influence another rally, and price once again began to trend upwards during next days. There was a little resistance in between the Feb 20th  and 22nd trading sessions, probably due to the early exits. The market therefore slumped a little towards the prevailing support level at 0.00117.


But in last few days, Potcoin seems to have been retaining its bullish momentum and has surged to 0.00127. At press time, the price is testing the previous peak near 0.00137 — a point where a huge selling pressure awaits.

Potcoin 3.0 Announced

The 75% rally throughout  last week could be credited to a new development plan, introduced by Potcoin developer Russ Thomas recently.

“There will be a PotCoin 3.0 and it will be based on core principles, as follows: Transparency; Collaboration; Community; Decentralization; Empowerment; Support; [and] Shared Gains,” he stated on Reddit.

Thomas meanwhile revealed the development timeline to Potcoin followers that will be effective February 27th with a detailed public announcement. The event will be followed by plan authorization on March 2nd, public review by March 9th, and ultimately the response from MED on the use of Potcoin for purchasing medical marijuana by March 15th.

Potcoin team has also launched a new marketing campaign to attract more and more cryptocurrency fanatics to their community.

Yesterday, it was Potcoin.  Today, it would be great if we all went out for beer and pizza… Coin.

That’s right, there’s Beercoin and there’s Pizzacoin.  There are 500 total coins in existence of each, and both are part of the CCP line of Commercial coins along with Vodkacoin, Colacoin, and even Hotdogcoin.  Ah, the names and purposes we’re able to dream up.

Judging from their labels, I think it’s only safe to assume that users can buy beer and pizza with the digital currencies, and heck… What a nice way to spend the night out; hanging with friends, chugging down a cold pint and satisfying your hunger with a lavish pie that has everything on it.  In the midst of it all, you pull out your wallet and there’s no cash in there.  You have no credit card, and the pizza doesn’t accept personal checks.  What are you going to do?  Well, this is where the “coins” come in.  You delve into that digital stash, and boom!  You’re covered for the night.  Seems simple enough…

potcoin beercoin pizzacoin cartoon by newsbtc

But like I asked with Potcoin, I must ask here… How much of a presence do these two digital currencies really have in the altcoin universe?  Both currencies bear five star ratings on since their integration into the crypto universe in January of 2014, but reactions towards both coins are mixed on the Bitcointalk forum.

The real trouble here, as always, depends on what areas or businesses are going to bear acceptance for the cryptocurrencies at hand.  Unlike dogecoin, litecoin and darkcoin, which are accepted at multiple venues and therefore have higher mining statistics and stronger value, limitations have been placed on Beercoin and Pizzacoin, and for that some are having a hard time taking them seriously.

But as we have seen with other currencies in the past, things may possibly change.  For all we know, it’s only a matter of time before every pub and every Italian restaurant is turning its back on fiat currency and bearing a huge welcome sign for two of the world’s “tastiest” altcoins.

The number of cryptocurrencies making their way into the financial spectrum is truly hair-raising.  It’s not just that there are so many, but many of us get a real kick out of the names they’re given and what it is that they’re used for.

Some of them, such as HawaiiCoin and VikingCoin, particularly make me laugh.  Can HawaiiCoin only be used in the tropics?  Can you only use VikingCoin if your ancestors wore horned helmets and sung opera?  Probably not, but we have our fantasies.

Some of these cryptocurrencies, however, are extremely serious in their attempts to deliver specific products and environments to users.  One of them, for example, is known as Potcoin… That’s right.  A cryptocurrency specifically created for users to purchase marijuana, hemp and cannabis products.

pot cryptocurrency potcoin

It was recently reported that the overall value of Potcoin has fallen drastically when compared to the USD.  In a time when several areas are legalizing the use of pot for medical purposes and when the debate surrounding related usage continues to swell and burn, it’s a little surprising that such a drop even occurred, and yet occurred it has.  Is it possible that people no longer feel marijuana does the job?  Are they moving onto other things?  Maybe they’ve heard alcohol is more effective…

Obviously, this isn’t the likely reason.  All one has to do is look at the Bitcoin Talk forum’s page devoted to Potcoin to know that several people are still enthusiastic, but when we really get down to it, fans still appear to be in the minority.  When compared to entities like Dogecoin, Darkcoin, Potcoin doesn’t rank amongst the most well-known altcoins.  Furthermore, its usage is rather limited in terms of what one can purchase, and more is going to be needed to create a name for the currency in order to get a larger following started.

Seeing this, however, does make me wonder what cryptocurrencies we’ll see in the near future… I won’t be surprised if by next year we witness something called Dodocoin… Or maybe even Vegetablecoin.  Who knows?

Cannabis-based cryptocurrency Potcoin has earned enough reputation as a cash alternative to medical marijuana businesses and users. However on the trading front, the coin is falling drastically against the USD.

Screen Shot 2015-02-15 at 23.29.38

At the start of last week, the POT/USD pair was looking fairly optimistic. On Feb 8th, the pair was valued around 0.00121944 and rose comfortably to around 0.00137490 by the end of Feb 11th. A part of this surge was credited to Potcoin investors who jointly sent a letter to the Colorado MED on Feb 7th — a day before the actual uptrend took place. The letter was written in regards to know whether virtual currencies could be used as one of the payment methods for legal marijuana.

Potcoin Getting high yet

In our knowledge, it was the first time a team belonging to one of the cannabis-based cryptocurrencies actually took an initiative to confirm its position in a legal framework. Investment-wise, this move could have inspired traders to roll-in some money to its market cap; hence the surge.

However, the hype surrounding the surge failed to extend itself and later overtook by huge selling pressure. As a result, the POT/USD formed a bearish flag — falling from 0.00133436 to 0.00115359 in the last 48 hours. One can also peg this drop to Bitcoin’s volatile surge during the same span, which might have deviated traders’ conscience towards more profitable trades.

Overall, Potcoin is a more speculative investment than the coins above it. Even if state governments allow virtual currencies to flourish in medical marijuana industries, Potcoin will definitely face strong competition from other successful coins like Bitcoin, Darkcoin, etc.

A multibillion-dollar, “legal” industry like Medical Marijuana, whose network is spread across 23 US states and the District of Columbia, is still deprived of the very basic thing any industry would need — a banking system.

According to a report by Jeffrey Stinson of The Pew Charitable Trust, the cannabis centers all across the United States are finding it hard to obtain even a simple banking facility. “The abundance of cash makes the country’s 2,000 retail shops and medical dispensaries tantalizing targets for criminals,” the report reveals.

“Without bank accounts, legal marijuana businesses have a hard time paying their employees and vendors. Relying solely on cash leads to a lack of transparency in accounting and auditing, and it complicates paying the taxes that states impose on cannabis.”

The trouble for the cannabis industry doesn’t end here. There are reports of eleven more US states voting in favor of legalizing medical marijuana, thus adding more cash to the vendor’s drawer. The upcoming “lucrative” laws still remain risky for businessmen, who have been kept away from accessing even the basic checking and credit card service from their respective local banks.

There are some reports available on the internet that clearly explain how marijuana dispensaries have become a soft target for burglars. For instance, a crime statistics report last year concluded that marijuana-related incidents has contributed 2% to the overall crime scenario. Among these data are 317 burglaries during 2012 and 2013, and 74 in 2014. Don’t forget that these figures just represent Denver. A wider picture would be more shocking.

The cannabis industry revenue meanwhile is estimated to be rising $2-3 billion annually. Now we know there is definitely a problem. Let’s focus now on WHY there is a problem.

The Conflicting Medical Marijuana Laws

The one, and might be the only, reason why banks are sending cannabis businesses back is a Federal Law which refers to marijuana as a Schedule I drug. Seeing it from a legal perspective, even a drug like heroin looks equivalent to state-approved medical cannabis. Thus, the banks simply want to avoid associating with businesses that deal in Schedule I drugs — legally or illegally. Going into such a partnership simply makes them vulnerable to certain drug laundering laws, which could even lead to suspension under the Fed’s law.

The State and Federal laws are conflicting. The previously introduced bills to support medical marijuana businesses have died. What the industry now hopes for is modification in the current national bill, which puts marijuana in a non-narcotic list.

Is Cryptocurrency an Alternative?
I won’t rerun a show describing the benefits of using a cryptocurrency, as I expect you all to understand what I am trying to say. But to sum up, the cannabis industry could indeed be more open towards adopting cashless and secure methods. And from where I see, there could no better alternative than decentralized cryptocurrency like Bitcoin to act as a payment medium between cannabis users.

Other than Bitcoin, retailers could also opt for altcoins – Dopecoin, Potcoin, etc. – that are specifically designed and launched for cannabis industries. These cryptocurrencies are already being used at online drug stores, but are still lacking access to thousands of physical stores. As technology like NFC expands, we might even see this happening anytime soon– a state-regulated cryptocurrency network to buy/sell cannabis.

Though, let’s not forget BitPay has rejected offering services to marijuana businesses in the past as well. Just reminding!

Images from Flickr.

Newly launched underground marketplace Silk Road Reloaded (SRR) recently added new altcoins to its platform and announced to integrate them all to its checkout process.

On its website, the online drug bazaar has listed Anoncoin, BitBar, Dopecoin, Potcoin, BitcoinDark, Quark and Reddcoin – all slated to join as the site’s go-to payment options to purchase a series of illegal goods. SRR is already accepting Bitcoin, Blackcoin, Dogecoin, Darkcoin, Feathercoin and Litecoin as payment options. The site administrators are also open about adding more altcoins on request.

The online marketplace has integrated a special online conversion tool that accepts payments in aforementioned altcoins, but converts them all into BTC before sending it to the receiver’s wallet (by charging a conditional 1% conversion fee). Thus, the liquidity on this particular marketplace is relatively higher than the others. This might turn out to be one of the major factors of SRR, especially when every dark market out there is aiming to fill the empty seat left by the previous Silk Road(s).

Meanwhile, the soon-to-be-added altcoins are also overwhelmed to have received some brand recognition after all. A senior member of the Dopecoin community writes:

“As you might have expected, it [Silk Road Reloaded] is getting some good press in the national headlines and this will only booster Dopecoin’s brand recognition and national exposure which is needed to stand out as a premier coin in this niche space. We feel this is the perfect fit for what we had envisioned.”

Silk Road Reloaded was launched earlier this month, and sells drugs, fake money and IDs, hacking tools and fake clothing. It though avoids selling much darker stuffs like weapons and stolen credit card information – a drawback if compared to its competitor Evolution that sells them all in the open.

After five-long months, precious metals dealer Amagi Metals announced to integrate Dogecoin payments once again to its platform.

On July 23 this year, the ecommerce company had discontinued accepting Dogecoin in the wake of coin’s ‘then-dropping’ reputation. In its press release, Amagi Metals directly accused Dogecoin to be involved in “untrustworthy actions” like supporting bad actors on the network, and neglecting double spending issues.

The decision of accepting Dogecoin now clearly indicates that Amagi Metals was a victim of propaganda and scare tactics. While the company didn’t stress much on the cryptocurrency’s return in their latest press release, it somewhat sounded positive about Dogecoin’s potential to captivate people around the globe.

Amagi Metals has always made a name for being the biggest supporter of Bitcoin and altcoins. The precious metal dealer even announced to stop accepting USD by the end of 2016, in order to be a full-time digital currency store. It explains why it chose GoCoin to be their official payment processing partner, a platform which is known for being uniquely designed to accommodate emerging cryptocurrencies.

“We’d been waiting for a payment processor that could see the larger picture beyond bitcoin payments alone,” said Stephen Macaskill, CEO of Amagi Metals. “The GoCoin platform is uniquely designed to accommodate emerging cryptocurrencies, which was a critical factor in our decision.”

“Stephen has already put a stake in the ground for bitcoin by announcing Amagi Metals would stop accepting US dollars as a payment method by 2016,” said Steve Beauregard, co-founder and CEO of GoCoin while returning the gesture. “He’s a visionary in his own right and as such, recognizes the vast opportunity that lies in embracing the larger ecosystem of cryptocurrencies.”

Amagi Metals further announced to add more altcoins to its platform next year. Other than Dogecoin, it currently accepts Bitcoin, NXT, Ripple, Darkcoin, Potcoin and Litecoin as payment alternatives.