60% of South Africans Are “Not Aware” of Cryptocurrencies, Study Shows

Francisco Memoria
  • A recently conducted survey shows most South Africans are "not aware" of cryptocurrencies like bitcoin.
  • It shows, however, that 38 percent of those who were aware wish they had invested in cryptocurrencies.

Financial services giant Old Mutual has recently published the 2018 Savings and Investment Monitor survey for South Africa, the continent’s second-biggest economy. Per its study, as much as 60 percent of South Africans revealed they’re unaware of cryptocurrencies.

About 19 percent of the country’s residents revealed they were aware of cryptocurrencies like bitcoin, but had “just heard about it.” 17 percent knew “a bit,” while only 4 percent showed they knew a lot about cryptos.

Respondents’ sentiments towards cryptocurrencies showed that 53 percent did “not understand how they work,” while 71 percent believe it’s possible to “make a lot of money” with them. About 38 percent of respondents who were aware of cryptos noted they wish they had invested in them before.

Notably, 43 percent likened cryptocurrencies to a pyramid scheme, a number that may be influenced by news that revealed the country’s authorities were investigating an $80 million bitcoin Ponzi scheme that collapsed after its founder disappeared.

Old Mutual’s survey comes little over a week after Google Trends data showed South Africa has the highest worldwide interest for bitcoin, the flagship cryptocurrency. As CryptoGlobe covered earlier this month, the country has a well-established legal framework that governs the financial services industry.

Regulators in the country are aware poor regulations may stifle innovation, and as such haven’t been taking an aggressive approach. In April, the country was set to establish a self-regulatory unit to oversee the industry. At the time the central bank’s Director of Banking Practice, Bridget King, stated:

“Regulating cryptocurrencies prematurely could have the negative consequence of throttling the growth and innovation of the industry”

Bridget King

Nevertheless, the South African Revenue Service (SARS) revealed through an official statement that normal tax rules apply to cryptocurrencies. While the organization sees them as intangible assets and not currencies, taxpayers are expected to declare gains.

Recent crypto-related developments in the country include the launch of crypto exchange SygniaCoin, which is set to allow users to purchase cryptos with the Rand, South Africa’s fiat currency, and to base its rules and regulations on exchanges in New York.

Another cryptocurrency exchange, Coindirect, also recently launched trading pairs between the Rand and various top cryptocurrencies, including bitcoin, bitcoin cash, ethereum, litecoin, and Ripple’s XRP.

Bitcoin’s Tumbling Again: Now’s the Time to Change the Way You Invest

Important information: please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

After bitcoin’s price stabilized for two days around the $11.400 mark, bitcoin has started to drop on August 13, a day in which te crypto lost 6.6% of its value. On August 14 it lost another 6.3%, and on August 15 it hit a $9,542 bottom before moving back up. At the time of writing BTC is down a further 7.17% for the day, and 17.92% for the week.

Many investors have been waiting for a bitcoin rally since the end of June, when bitcoin hit its 2019 high of almost $14.000. Various prominent crypto investors have been claiming they’re absolutely sure bitcoin will hit new highs soon, offering sometimes unbelievable numbers.

The situation is worse for altcoins: Ether, XRP and LTC are down 11.33%, 7.74%, 11.88% respectively, 7-day performance shows double-digit decline in prices.

img 1.pngSource: Coin360

According to market analytics, such a decline could be related to the recovery of the Chinese yuan: when the Chinese fiat currency’s price dropped over US-China tensions, investors started to move their capital into crypto. When tensions between the countries started to mellow down, investors sold their bitcoin.

Bitcoin was rallying this year until U.S. regulators poured cold water on Facebook’s Libra, which made some investors uncertain. We maintain a positive outlook regarding bitcoin’s future as we’re sure it’ll hit new highs. But is just buying bitcoin and waiting for its price to rise the most effective way to invest in the short-term?

Investors who interested in quick profits can consider margin trading – a very effective way to make a profit on cryptocurrency price movements.

Bexplus: A Fast-Growing Trading Platform Offering 100x Leverage

Bexplus is an advanced bitcoin-based cryptocurrency exchange offering 100x leverage crypto futures trading. Margin trading allows traders to leverage their position up to 100x, be it long or short. Such high leverage and the ability to short bitcoin (or other cryptocurrencies like ETH, EOS, LTC, XRP, etc.) is a rare possibility not seen on the majority of crypto exchanges – with there being maybe a handful of legitimate providers.

With enough volume and activity in these markets, traders can actually use volatility to their advantage when combining it with high leverage to profit from relatively small but predictable price movements.

img 2.png

On Bexplus, you don’t need large amounts of BTC to gain big: thanks the ability to leverage 100x, investing 0.1 BTC can bring investors a 10 BTC profit. There’s also no need to wait for a big upward price movement: investors can open short (selling) or long (buying) positions.

Bexplus offers various advantages to its users: for example, now by making a deposit you can take advantage of a 100% deposit bonus. For example, when depositing 1 BTC you’ll get 2 BTC in total, which you can use for trading. Profits which earned with the bonus can be withdrawn.

Bexplus Wallet

Bexplus is not just a trading platform, it’s a lending service. Created especially for investors who don’t want to take high risks by trading with leverage, Bexplus Wallet offers investors one of the highest annual interest rates in the industry: depending on the amount of your deposit, you can get an annual percentage rate (APR) of up to 30%.

Its safe and you always can withdraw your assets at any time if you change your mind.

img 3.jpg

Start earning with Bexplus today!

Follow Bexplus on:

Website: www.bexplus.com

Facebook: https://www.facebook.com/bexplusglobal

Telegram: https://t.me/bexplusexchange

Twitter: https://twitter.com/BexplusExchange