There was lots of interesting new research for South African cryptocurrency fanatics to digest this week, in the form of a new report from market research specialists KPA.
The good news is that nearly half of all South Africans (47%) own cryptocurrency in some form or other, while the bad news is that for a quarter of those people, the value of the crypto they hold is somewhere between R10 and R100.
What does this mean? ‘Th research indicates that the bulk of South African crypto investors are experimenting and dabbling without making a significant financial commitment,’ according to KLA’s Tessa Nowosenetz.
In addition, the study shows that 36% plan to invest in crypto in the future, and that there is huge potential for companies who can tap into this curiosity and deliver on it.
It’s no surprise that citizens are awake to the potential benefits. After a year in lockdown glued to our devices, and with the stability of the economy seeming to always be on shaky ground, people start looking for alternatives and safe havens. Add to that the fact that millions of South Africans are obsessed with Elon Musk and follow his every utterance on Twitter with a passion that borders on religion.
So when Elon started talking about DogeCoin and Bitcoin late last year and the fact that Tesla began accepting payments in Bitcoin, I imagine that was the moment when thousands of people finally accepted the fact that cryptocurrency is here to stay.
Let’s take a closer look at the numbers that KLA uncovered:
- 13% of the respondents are holders of cryptocurrencies that are valued between $70 and $700.
- 3% three percent of the respondents said they own digital currencies whose value is in excess of $3,400.
- 20% of those that are dabbling into cryptocurrency are doing so because they want to diversify their portfolio.
- 16% of the respondents said they are interested in using or trading cryptocurrencies because “everyone can do it.”
- 36% plan to invest in crypto in the future.
These numbers are significant. “This marks the second-highest percentage globally, said Nowosenetz.They are substantially higher than Luno’s estimate of 15% of South Africans being HODLers, and it would be good to take a look at who KLA made contact with in the survey, given the fact that so many South Africans scrape out a meagre existence just above or below the poverty line. For the record, it should be stated that the South African Treasury estimates that there are at least two million retail investors in the country, with R2 billion in transaction volumes recorded each day, according to BusinessTechZA. “Crypto-assets have become too big to ignore and pose a number of risks for consumers if not sufficiently regulated,” it said.
But for many South Africans, there are important and valid reasons why they are going into crypto that go beyond just hoping for incredible, once-in-a-lifetime gaims. Those people are happy to build up their portfolios slowly and see how the industry unfolds.
Nowosenetz provided the following list of reasons why many people are getting deeper into crypto.
- It allows you to diversify your investments/portfolio (20%)
- It’s easy and accessible – everyone can do it; you just need a smartphone, a bank account, and some money (16%)
- It’s an exciting currency to invest in (8%)
- You can send it to people in other countries (4%)
- It’s not regulated (4%)
And what about for us at Cape Crypto? For us it’s simple – it is the clearest path to Financial Freedom. That is why we have thrown everything at it, and why we support independent movements that lead to Financial Freedom.
If you’re ready to diversify your portfolio and get into Crypto, then look no further than Cape Crypto, the fastest and easiest way to use your phone to start trading cryptocurrency. Download the app today.