South Africans Turning to Crypto

South Africans Turning to Crypto as Hedge Against Volatility of the Rand

A survey by Luno, a London-based cryptocurrency platform, has revealed a growing number of people in South Africa prefer holding cryptocurrencies like bitcoin and bitcoin cash in contrast to the neighborhood fiat unit, the rand. About 70% of South Africans have learned about virtual monies, and most people have been utilizing them as a hedge against inflation and exchange volatility, the report said.

The survey,”Why do people purchase cryptocurrencies? It covered 10 countries, such as South Africa, using a sample of approximately 1,000 people in each country. The analysis found that 69% of South African respondents are familiar with cryptocurrency, while one-third own digital assets and 53 percent are thinking about getting them. Greater than 80% of the respondents that own digital coins view them as investments, whereas 23 percent have used cryptocurrencies for online transactions. Only 12 percent of the respondents stated they’ve utilized cryptocurrencies for cash transfers to friends and loved ones.

The recent volatility has partly been a response to the appointment of a record four finance ministers over the past two years, in addition to news which Africa’s most sophisticated economy has slumped into recession.

As a result, a high number of investors have switched to alternative investment options such as bonds and virtual currencies. Based on Luno, 40 percent of the poll participants agreed that electronic assets are a secure investment choice, although 61 percent described them profitable. Around 74 percent said they’d like to pay with cryptocurrencies in online stores and brick-and-mortar shops.

Marius Reitz, Luno country director for South Africa, said the world is currently going through a major change in the evolution of money:

The existing financial system was built for a non-digital age but the world now has access to new technologies like decentralized cryptocurrencies. This is enabling us to reimagine the financial system and to upgrade the world to something better.

The poll, which provides insight into the mind of the cryptocurrency community, also demonstrated that the uptake of virtual monies has been marginally greater among younger South Africans. But overall, era hasn’t proven to be a substantial differentiator. This challenges the frequent perception of younger customers being more environmentally adept and ready to take on larger financial risk.

Fewer women possess cryptocurrencies or are acquainted with them than guys. The outcomes are in keeping with the gender divide seen in traditional investing, in which the involvement of women too tends to be much lower compared to guys.

A recent research conducted by Nelson Mandela University discovered that women are generally less convinced about investment and financial issues, according to the report.

It is possible that this same trend from conventional investing is exhibiting itself in cryptocurrencies. This means that to increase participation by women in cryptocurrency, it should simply require that women become as familiar with the technology as men.

Additionally, 48% of South Africans stated that they’re worried about losing money when utilizing cryptocurrencies, mainly because of phishing scams or trade mistakes. Other safety issues revolve around the availability of reliable providers of cryptocurrency. Greater stability in the price of cryptocurrencies was just the third-highest factor impacting optimism among South African survey respondents.

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