[2018-05-13] 47% of South Africans Plan to Invest in Cryptocurrencies

[ivanpoldark]

South Africa has the most sophisticated economy and financial sector on the continent, and its citizens are increasingly warming up to the idea of investing and trading in cryptocurrencies — despite regulatory concerns over such decentralised digital financial assets across the world.

The MyBroadband 2018 Cryptocurrency Survey — completed in April — shows that more South Africans who have never previously held cryptocurrencies are planning to invest in cryptocurrencies either by purchasing them directly or by gaining exposure to the industry through investments in related enterprises such as cryptocurrency mining.

“Of the survey respondents who do not own or who have never owned cryptocurrency, almost 50% said they plan to invest in an aspect of cryptocurrency or crypto mining in 2018,” reported the MyBroadband tech news and research site on Friday.

Several other tech savvy South Africans who responded to the survey said they were still planning to buy tokens despite never having been invested in the area.

Global prices for bitcoin and etherium skyrocketed in 2017 before bottoming out early 2018 while prices have been volatile in the past few weeks. Prices of cryptocurrencies are susceptible to developments and regulatory issues around the digital assets across the world.

About 25% of respondents to the MyBroadband survey they “will invest in cryptocurrency” while around “15% will invest in cryptocurrency and crypto mining.” A further 7% said they would invest in crypto mining

Cliffe Dekker Hofmeyer  says the recent decision taken by the South African Revenue Authority (SARS) to tax cryptocurrencies was “anticipated” owing to the “growing popularity of cryptocurrencies in South Africa and following the absence of legislation relating to the taxation and regulation” of virtual currencies.

Reports say cryptocurrency trading is on the surge in South Africa, with some restaurants and businesses already accepting virtual currencies for payments. Other African countries such as Zimbabwe have shied away from acknowledging trade in bitcoin despite virtual currencies increasingly helping plug liquidity and foreign currency shortages for international transactions.

https://www.ccn.com/47-of-south-africans-plan-to-invest-in-cryptocurrencies/

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[Kakmakr]

I had a look at the site and it looks like it is a platform where "technical" people in the IT industry congregates. So this is the ideal people who would be the target market for Bitcoin adoption, first. I have traveled via South Africa to other African countries recently and I can tell you, that there are no significant Bitcoin merchant access in their international airport or the Mall's I visited.

They are still in the early days of Bitcoin adoption in their country, but they have a very good Bitcoin exchange. <Luno.com>

[gabbie2010]

The article reemphasized the fact that south Africans as a pioneer and leader in crytocurrencies in Africa I belief the plan to invest in crytocurrencies by the citizens is putting them in a forefront for other African countries to follow suit, Nigeria, Zimbabwe and Congo are other African countries that are following the trend of investment in Cryptos despite their government unfriendliness towards cryptocurrencies.

[SaintGraal]

Of course, it's logical that the richest country on the continent is trying to invest more, just because they have money.

[Harlot]

Well you cannot expect that all of that 47% will really go into cryptocurrency mining or trading, we must focus on the words "planning" as this could mean two things they are just thinking about it which could really go either way or they are really in an ongoing plan on buying the cryptocurrencies or mining it. But numbers aside this is good start for a country open to cryptocurrency, what I think is the more countries open to cryptocurrencies the more chances of this cryptocurrencies being accepted globally as well make the crypto market to go up.

[Hamphser]

Well you cannot expect that all of that 47% will really go into cryptocurrency mining or trading, we must focus on the words "planning" as this could mean two things they are just thinking about it which could really go either way or they are really in an ongoing plan on buying the cryptocurrencies or mining it. But numbers aside this is good start for a country open to cryptocurrency, what I think is the more countries open to cryptocurrencies the more chances of this cryptocurrencies being accepted globally as well make the crypto market to go up.

When we do talk about the word "Plan" then it do really have still chances for the decision would go to opposite way which same as you said its still on a phase where they do gain some view towards it but the good thing on here is that they are already aware into its existence and might have the higher chance for the plan to be implemented. 47% overall of south Africans to invest into crypto would really give positive views even more into neighboring countries not only on nearby but might open other places as well.

[laredo7mm]

I am sceptical about this study. South African rand [ZAR] has only 2.5 million USD daily trade volume in pair with bitcoin. For example British pound [GBP] has over 12 million USD volume.

[imsotiredofmoviereboots]

Well you cannot expect that all of that 47% will really go into cryptocurrency mining or trading, we must focus on the words "planning" as this could mean two things they are just thinking about it which could really go either way or they are really in an ongoing plan on buying the cryptocurrencies or mining it. But numbers aside this is good start for a country open to cryptocurrency, what I think is the more countries open to cryptocurrencies the more chances of this cryptocurrencies being accepted globally as well make the crypto market to go up.

Correct. It could be that most of the percentage are still reluctant and just considering investing in crypto and only few of them are very sure. However, I really like their positive view on cryptocurrencies.

[Kakmakr]

Of course, it's logical that the richest country on the continent is trying to invest more, just because they have money.

I am very sorry to disappoint you, but South Africa is not the richest country on the African continent and has not been for a while now. https://en.wikipedia.org/wiki/List_of_African_countries_by_GDP_(nominal)  This is based on the Gross domestic product (GDP)

The Economic instability goes hand in hand with the corruption in their government and also political instability. As a investor, I can tell you that other countries in Africa are becoming more stable than South Africa. The crime in South Africa is also getting out of control, with some of the highest murder rates in the world. The racial under tone is also very evident from both Black and White people in that country. Their workforce is also unstable and becoming very expensive, with Unions fighting political battles and strikes being the norm. <even becoming violent>

My friends in that country is very concerned with these issues and where things are going in that country.  

[1Referee]

South African rand [ZAR] has only 2.5 million USD daily trade volume in pair with bitcoin. For example British pound [GBP] has over 12 million USD volume.

Don't focus too much on such statistics. In developing and third world countries the off-exchange volumes are far higher than what you are pointing at. Volumes on exchanges are only a tiny percentage of the total, where private (OTC) trading volumes are far higher in every country. The lack of liquidity and regulations have pushed investors and regulars away from exchanges, and now you get this, which pretty much explains why certain exchanges have jumped into facilitating OTC deals.

All these surveys are worthless because we can all complete them with just nonsense answers, and also since they are only related to the moment, which is something that holds no value in a market where the sentiment can change in an instant. In other words, people's positive motivation towards crypto today is likely gone tomorrow.

[Betwrong]

I had a look at the site and it looks like it is a platform where "technical" people in the IT industry congregates. So this is the ideal people who would be the target market for Bitcoin adoption, first. ~

So, basically the survey was held among those people? Now it's easier to understand where that "47%" came from. The percentage will not be even close regarding the whole population of South Africa. I think if even 1% of the world population will adopt cryptocurrencies in 2018 it will be a huge leap forward.

They are still in the early days of Bitcoin adoption in their country, but they have a very good Bitcoin exchange. <Luno.com>

I checked the Luno daily trading volume and it is 5 million USD which is pretty impressive for this country imo.

[Luminous-Nova]

great south africa is getting more modern everyday i think they will organize big part for cryptocurrency term!

[Qartersa]

I guess it will be good but generally I think a big portion of Africa does not even have a stable source of electricity. 47% might be far fetched here. Africa has spiraled way down the poverty line and only a few portions of it that we can say is a bit developed to be able to make use of a technology like bitcoins and the blockchain.

I don't think mass adoption will start in Africa. Maybe there are places that would be better suited to get that percentage, but it would likely just be a country and not a whole continent. Though if this news has any semblance of truth, I would be glad to accept it as it will further advance the adoption of cryptocurrency in the world and could be the spark the technology needs to launch it to a global acceptance.

[SaintGraal]

Of course, it's logical that the richest country on the continent is trying to invest more, just because they have money.

I am very sorry to disappoint you, but South Africa is not the richest country on the African continent and has not been for a while now. https://en.wikipedia.org/wiki/List_of_African_countries_by_GDP_(nominal)  This is based on the Gross domestic product (GDP)

The Economic instability goes hand in hand with the corruption in their government and also political instability. As a investor, I can tell you that other countries in Africa are becoming more stable than South Africa. The crime in South Africa is also getting out of control, with some of the highest murder rates in the world. The racial under tone is also very evident from both Black and White people in that country. Their workforce is also unstable and becoming very expensive, with Unions fighting political battles and strikes being the norm. <even becoming violent>

My friends in that country is very concerned with these issues and where things are going in that country.  

Is it just the 2nd one in your rating? Ok, sorry.
I admit I was wrong, btw nominal GDP doesn't explain a lot, we should look at least at GDP per capita

[exstasie]

I am sceptical about this study. South African rand [ZAR] has only 2.5 million USD daily trade volume in pair with bitcoin. For example British pound [GBP] has over 12 million USD volume.

For good reason. The headline is extremely misleading. This is not a reputable poll and isn't representative of all South Africans.

If you go to the source, it was basically like a SurveyMonkey poll. I'm guessing there weren't many respondents (can't find the actual sample) and it could be easily manipulated. MyBroadband is also an IT publication, so its readers are way more likely to be interested in cryptocurrencies than the typical South African.

[dE_logics]

Whether the poll can be trusted or not, I can see the instability that has started to take over the SA government creating inflation and increasing interest in crypto.

[alex_gr_cc]

African countries have two options:
improve the financial situation by using cryptocurrency or worsen. Everything depends on the governments of these countries and regulation. Taking into account the high level of corruption, I am sure that only the officials will become richer at the expense of the cryptocurrency.

[Ademen]

African countries have two options:
improve the financial situation by using cryptocurrency or worsen. Everything depends on the governments of these countries and regulation. Taking into account the high level of corruption, I am sure that only the officials will become richer at the expense of the cryptocurrency.

If they do this, they might be out of poverty sooner.