Everybody wants in on cannabis riches. With more states legalizing and Canada set for commercial sales in 2018, the future looks bright.

But what about the inevitable economic slow-down?

The cannabis industry is one among many currently experiencing an inflationary boom.

There is a burst of entrepreneur creativity in the cannabis industry, and as this develops and matures, as time goes on, many of these ideas will be honed in and consolidated.

This happens naturally, but an economic bust necessitates that this happens abruptly, in a way that makes some people poorer by revealing actions that are detrimental to wealth creation.

Without easy access to credit, many cannabis companies will end up like the bankrupt companies of the dot-com bubble from the early 2000s. But, like Amazon, some companies will rise from the ashes.

In the long-run, cannabis survives any upheaval. War, famine, depression, you name it.

But how many of those dot-com companies that once traded alongside Amazon still exist? Do you think that, in the future, people will still be using all the different cryptocurrencies that currently exist? The same way people still use AOL for e-mail or Internet Explorer for a browser?

Cannabis will always be popular. But to imagine a multilayered economy where anyone in the weed business is a millionaire just isn’t going to happen.

Especially in Canada. We’re such a small economy for such a large landmass. The industry will be consolidated by natural forces, but this process will be sped up, unfairly, under current crony-capitalist conditions.

People right now have access to the kind of capital required to start a cannabis business. But in the future, the near future, when capital is scarce, the natural consolidation process will be kicked into high gear, it will be like a clean-up on steroids or a highly potent sativa.

In the end, only a few companies will dominate.

So, where will the others go? And if they’re booted out of the market also due to state prohibition, something that has nothing to do with the natural consolidation process of the market, what then becomes of BC’s booming billion dollar cannabis industry?

The cannabis bubble originates from Ottawa and Bay Street, not BC.

The craft producers of BC are artisans that will survive any recession thrown at them. The stock-trading licensed producers regulated by Ottawa are the ones in trouble.  A few will make it out alive, but even that’s up for debate.

The future of cannabis in Canada looks very much like the dot-com situation from the early 2000s.

Anyone pretending otherwise is deluding themselves.

  • Robert Wright

    Caleb the future looks dismal for mom and pop grows they will all have to go underground if they don’t hide and do it very well the government push by the LP’s to shut them down will come after them with a vengeance that’s the future I see you will only be able to buy seeds or clones from LP’s who the government will use to control potency. It’s a future I don’t want to be part of.

    • Doris

      No need to worry Robert…

      LP’s are loosing millions as we speak after 3 years running poor quality cannabis, while Tweed’s CEO Bruce Linton is busy drinking Mimosa. Dude’s never even tried cannabis.

      Why would the 8 million cannabis partaking users switch to LP’s?

      For their 3% capped oil sold for a premium ?

      Or sprayed buds maybe ?

      Bonno was right on!

      LP’s are dead in the water.

      • Robert Wright

        Dorris I sure hope your right because right now everything these government officials think they know about cannabis is old outdated reefer madness propaganda you know little johnny and the toaster oven kind of nonsense .
        Perhaps the governments greed will force them to loosen restrictions when their LP friends don’t deliver the tax revenue the federal and provincial governments in this country were hoping for.
        I don’t believe them for a second when they say they are doing it to protect the children or the public it’s about greed and tax revenue.

        • Doris

          You are 100% correct.

          But LP’s boss is Health Canada, who stipulates that cannabis is not good for you.

          That right there is a bad LP’s start.

          Every move by Health Canada is wrong and bogus.

          LP’s are no match for nimble and experience Canadian Cannabis Farmers.

          Who do you think will survive?

          LP’s who lose money selling junk 3% capped oil or flowers only, or 20 years cannabis experienced Craft Growers pumping all kinds of goodies?

          Freddie Pritchard is gaining traction with journalists and ”straight” folks.

          The madness has to end one day.

          That day is coming.

          When it comes…and price drop like a stone…LP’s will pop…;?)

          • Robert Wright

            We will have to wait and see but I am 60 and I don’t expect to see true legalization in my lifetime look at craft breweries how long has it taken them to get in on the booze market and they still face stiffer regulations then the big brewers I hope you are right and I am wrong Doris.