According to data from market research and data specialist firm KLA, about 25 percent of South African adults hold Bitcoin, with 36 percent planning to invest in cryptocurrencies in the future.
KLA’s account manager, Tessa Nowosenetz said:
According to our data and a recent survey completed on the topic – among our panel of South African adults – numbers are higher, with 25% saying that they have cryptocurrency worth between R100 and R1,000.
Despite the percentage of crypto holders in the country, the amount invested by each individual tells a different story. According to the survey, the majority of these holders invest a low amount ($70 on average), which shows that they are still experimenting and testing without committing any significant amount.
Nowosenetz opined that many investors were driven by the belief that cryptocurrencies are a get-rich-quick scheme, and a majority of them invested without gathering enough knowledge.
The main appeal and advantage of crypto is the perception that there is an opportunity to make considerable gains on your investment in the short-term, with 43% stating this as their main reason for interest in crypto.
Meanwhile, 17% of residents maintained that they don’t have any cryptocurrency and are not planning on acquiring any. Over a third of those in this category explained that they prefer to invest in regulated financial products or with regulated financial service providers.