Over 7% of South Africans Own Cryptocurrency
The desire to create wealth has led to different money-making strategies globally. One of these is the cryptocurrency field, with several South Africans investing in it. Market research and data specialist have revealed that many South Africans have turned to cryptocurrency investment over the years, with even more people planning to invest in the future.
Continued Experimentation
South Africans continue to experiment with cryptocurrency as reported by most marketing research companies. The percentage of investors is still low, probably because most people are still trying to understand what cryptocurrency is about. While the number of those interested is high, their investment remains low as many try to navigate this industry and figure out how things are before they plunge in.
Most of the South Africans dealing in cryptocurrency has invested between 7 to 70 US dollars. Only a few are willing to spend anything from 70- to 700 US dollars as investments. This clearly shows that many are still unsure of this industry and still understand how things work. An even smaller percentage of South Africans own digital currencies over $3000.Generally, studies reveal that most people in South Africa are not cryptocurrency holders.
The Great Motivation
Marketers have discovered that South Africans maintain an open mind when trying out cryptocurrency. While many still trade cautiously, the interest is at an all-time high as many South African’s desire to learn the ropes of this investment. However, most of this interest is fuelled by the desire to make quick cash. There is a general perception that cryptocurrency investment is one of the fastest and easiest ways to make quick cash. Therefore, this appeals to many South Africans who desire to create wealth.
Out of the interested parties is in it as a strategy to diversify their investment portfolio. Then there is the group that takes part in this investment because others are doing it. Besides that, another group takes their time to understand the market and later invest because they have plans to do so.
Popularity and Status of Cryptocurrency in South Africa
There seems to be a driving force behind South Africa’s cryptocurrency popularity. Many people are motivated to buy cryptocurrency. Generally, it is safe to say that South Africans are interested in cryptocurrency and everything about it. There are other exciting reasons why South Africans continue to invest in Cryptocurrency today. These include:
- 20 percent feel that it allows them to diversify their investments/portfolio
- Easy and accessible – everyone can do it. All you need is a smartphone, a bank account, and some money. This accounts for 16% of the population.
- 8 percent of the participants believe that it’s an exciting currency to invest in
- 4 percent of participants are in it because it is easy to send this current to other countries while
- Four percent of those interested are attracted by the fact that the market is unregulated, so they will not be restricted.
However, despite the different categories of interest, a lot needs to be done for people to invest. Many people are yet to figure out the inner workings of this currency, and they prefer waiting as they understand what it takes to become successful. Many are interested but struggle to figure out the digital money aspect. Fortunately, this does not hinder most investors from taking large risks despite not having full information about this type of currency. Cryptocurrency attracts a unique investor mindset because investors quickly look to make good money.
What is the Holdup?
While it is true that cryptocurrency has grown massively in South Africa and Africa at large, it can do better. There seem to be a few hindrances to its full potential. First is the fact that some people think it is very volatile. 11% of the population believe they are likely to lose money, so they prefer staying away because of the volatility. The second category covers 10% of the population who have trust issues. Cryptocurrency is not very old, so it isn’t easy to trust it. Many may struggle to believe or adopt it as a worthwhile investment option.
Cryptocurrency Markets in Africa Has Grown Tremendously
Despite the figures and uncertainty of investors in this sector, there is a 1200% growth of cryptocurrency in Africa. It remains an attractive investment option for people seeking to find alternative routes to circumvent money market regulations and escape the effects of inflation.
The past year has seen this investment grow tremendously as the region takes up a larger share of retail transaction volume than global participation. Most of the growth happened between 2020 July and 2021 June, with new entrants coming from Kenya, South Africa, Tanzania, and Nigeria. The adoption of P2P platforms has majorly driven this growth.
Number of Crypto Owners in South Africa
Africa has generally seen a rise in cryptocurrency participants, and South Africa is no different. More than 7.1%, which is an estimated 4.2 million South Africans, own cryptocurrencies. This is not a small number considering the type of industry and the newness of the currency. South Africa is ranked among the top 10 global participants in cryptocurrency and bitcoin.
South African’s Perception about Cryptocurrency
There seems to be a general acceptance of cryptocurrencies in South Africa. Seventeen percent of the citizens interested in cryptocurrency have actively participated in the industry. They have confirmed that they have used or owned one form of cryptocurrency. This is encouraging news for the cryptocurrency industry with great potential to continue thriving. Besides that, about 10.7% of internet users in South Africa own cryptocurrency. This is one of the largest per capita globally.
Final Thoughts
Cryptocurrency is one of the most recent investments to have hit the global market. Africa, especially South Africa, accepts it as a viable investment option. While the motivating factors are different, with many interested parties hoping to make quick cash, a few people are still cautious about it all. From the different research data, cryptocurrency attracts a lot of interest among South Africans. Whatever your motivation is, cryptocurrency is worth it.
READ ALSO:
- How to Buy Bitcoin in South Africa
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- Best Forex Brokers in South Africa
Job is a seasoned writer with a good understanding of the emerging markets, Africa to be specific.
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