The constant talk about CBD in the news may have you thinking that this market is a good investment opportunity, and it is. However, just like any other investment, there are realities and risks you need to consider before you invest large sums of money in CBD. Here are some of the factors you should take into account before you decide to invest in the market.
1 – The legal status of CBD is flimsy
The odds that CBD will be illegal worldwide within ten years are low, but not zero. In many areas of the world, including here in the UK, there was never a conscious effort by legislators to make CBD use as we know it legal. Instead, legislators legalized hemp and its byproducts due in large part to pressure from the textile industry, which also had the side-effect of legalizing CBD.
And while most of the world seems to agree that legal CBD is not a problem, some European nations have gone on to limit who can access CBD within their borders, which greatly limited the reach of the market in those regions.
The flimsy nature of CBD’s legal status also leads to sudden changes in the market. Not long ago, the state of New York banned CBD edibles overnight, forcing baffled shop owners to pull thousands of dollars of products off their shelves. A similar problem happened in France, where a decision by the Supreme Court left the entire CBD market in a gray area, with many shop owners not sure if they could continue to sell the substance or not.
2 – The long-term safety of CBD is uncertain
CBD does have potential side effects, but the substance is relatively safe. In the short term, that is. As of now, there are no studies that look into the effects that CBD use has on the human body over a period of several years. How could there be? Using the substance only became a health trend in 2018. And while there were studies surrounding CBD before that, most of them involved observing how the substance acted alongside THC. We don’t know if the results of those studies will repeat themselves when CBD is used in isolation.
As soon as 2018 the USA’s Food and Drugs Administration was already raising concerns over the long-term safety of CBD. As in the previous year, an anti-seizure medication containing synthetic CBD had shown the potential to cause liver damage during clinical trials.
If studies show that long-term use of CBD in isolation can cause serious damage to the body, the CBD market may cease to exist overnight. Or at least it’ll be greatly scaled back.
3 – The CBD market is constantly in flux
Today consumers mostly enjoy vaping CBD and using CBD oils like the ones provided by Cibdol. But who knows what tomorrow will bring? This is a new market that is constantly in flux, and if you start making a big push to open your own CBD store today specializing in oils and vape juices, you may find out that the market has pivoted towards preferring edibles and CBD pillowcases before you’re done.
This doesn’t mean that it isn’t worth investing in CBD. It only means that you should be wary of entering this market if you aren’t ready to adapt to the rapid changes in this market.