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Those in the cannabis industry know 2019 was the "Year of CBD."
It seemed like everywhere you went, from gas stations to Sephora cosmetics stores, you could buy some type of CBD product.
And it makes sense.
Researchers are still studying all the powers of cannabis-based medicine, but CBD has shown that it can relieve pain, reduce anxiety and depression, lower high blood pressure, and help with substance abuse treatment.
The word is spreading about all of the potential benefits, and that's why someone who has never used CBD before is willing to pay $39.99 at CVS to buy hemp balm on a whim.
In 2018, the U.S. CBD industry was worth roughly $620 million, and as I mentioned, things have really ramped up.
I conservatively projected sales would reach $2 billion, but I also said I wouldn't be surprised if sales totaled $3 billion this year. The CBD market will continue to experience explosive growth, with sales potentially climbing to $23.7 billion by 2023.
However, CBD is not the only powerful cannabis compound out there.
In fact, today I'm going to show you two other lesser-known compounds that you're going to hear much more about in 2020... [mmpazkzone name="in-story" network="9794" site="307044" id="137008" type="4"]
The Rise of THCV and CBN
Tetrahydrocannabivarin (THCV) appears in small quantities in the marijuana plant.
It can produce a psychoactive effect in high dosages like THC, but unlike THC, it can work as an appetite suppressant. In fact, some brands are now focusing on selling products high in THCV because customers are saying it's helping with weight loss.
The idea that there's a specific cannabis compound that can suppress one's appetite rather than increase it - as cannabis is better known for - is astounding.
And that's not all. A 2013 study found that THCV could be used as a medicine or paired with other medicines to help treat type 2 diabetes. Another study found that THCV could alleviate symptoms for those with Parkinson's and even delay disease progression.
There's a lot of promise behind this compound, but there's also still a lot to learn.
In fact, in 2018, Cronos Group Inc. (NASDAQ: CRON) made a $122 million deal with Ginkgo Bioworks, a Boston-based bioengineering company.
Through the partnership, the bioengineering firm will create rare cannabinoids in large quantities, and one of those compounds is THCV.
So you should expect to hear a lot more about THCV in 2020.
CBN as a Sleep Aid
A lot of people who consume CBD do so because it helps them relax, but still keeps them alert at the same time.
CBN, on the other hand, has been found to offer a sedative effect.
A 2016 survey from Consumer Reports found that 27% of adults in the United States had trouble falling asleep.
And another study published earlier this month found that over-the-counter sleep aid sales have plummeted by as much as 236% in Colorado since recreational cannabis became legal - suggesting that consumers actually prefer cannabis as a sleep aid when given the option.
It would only make sense, then, that CBN could be turned to as a sleep aid.
Of course, more studies need to be done, but the compound already shows a lot of promise.
It could give people the chance to stop using heavy drugs or self-medicating to fall asleep. In addition, it has also been found to provide symptom relief for arthritis, seizures, and Crohn's disease.
You'll be hearing about these two compounds the most in 2020 (outside of CBD and THC), and this is just the beginning.
With more research, the true powers of the cannabis plant will be unlocked, and we'll know more about the health benefits of cannabis than ever before.
The cannabis industry as a whole is still in the infancy stage, which gives you a ground-floor opportunity that you may never see again.
That's why my team at The National Institute for Cannabis Investors released this free guide on the "Best Pot Stocks to Buy in 2020." In it, you'll find our picks for the best short- and long-term profit opportunities for the coming year.
And if you're new to the industry, you'll need this must-have guide for 2020...
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If you're new to cannabis, our "2020 Pot Profits Roadmap" has all the information you'll need on the budding industry.
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About the Author
Greg Miller started working on Wall Street in September, 1987, just a month before the “Black Monday” stock market crash.
During his career there, he became an expert in just about every kind of publicly traded security - from blue-chip and small-cap stocks to municipals, junk bonds, and derivatives. As a portfolio manager, Greg was responsible for over $500 million of assets in mutual funds and insurance company accounts.
After leaving the Street, he designed a successful options trading strategy and made lucrative tech investments for a financial publication. He has also helped develop new products and worked with other editors to hone their strategies. He’s always been dedicated to deep, fundamental research - and he always will be - because he believes buying the very best companies at the right price is the best way to amass wealth in the stock market.