According to the findings of a study by KLA, a market research and data specialist firm, some 47% of South African adults are holders of cryptocurrency, with the majority of this number holding low-value investments. In addition, the study shows that 36% plan to invest in crypto in the future.
South Africans Still Experimenting With Cryptocurrency
Though the KLA findings report that 47% of South Africans are holders, the Businesstech report quoting KLA’s Tessa Nowosenetz explains the value of crypto assets held is still very low. This low average value suggests that many are still trying to understand crypto. To emphasize this point, Nowosenetz said:
While this percentage is high, the amount invested is low. This indicates that the bulk of South African crypto investors are experimenting and dabbling without making a significant financial commitment.
According to the study’s findings, 25% of respondents that hold cryptocurrency have between $7 and $70 (or between 100 and 1,000 rands) invested in digital assets. Fewer South Africans — about 13% of the respondents — are holders of cryptocurrencies that are valued between $70 and $700.
Only three percent of the respondents said they own digital currencies whose value is in excess of $3,400. Still, despite having a significant number of people that hold cryptocurrencies, a majority of South Africans (53%) are not crypto holders, the study found.
Many Attracted by Quick Gains
Businesstech notes that despite their cautious crypto investment approach, many South Africans remain curious and are “interested in learning the ropes while engaging in a trial.” The report notes however that many are venturing into crypto because they are interested in making “a quick gain.” Nowosenetz explained:
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.
The report also reveals that about 20% of those that are dabbling into cryptocurrency are doing so because they want to diversify their portfolio. On the other hand, some 16% of the respondents said they are interested in using or trading cryptocurrencies because “everyone can do it.” The study shows that 36% plan to invest in crypto in the future and that only four percent of the respondents list the lack of regulation as their prime reason for choosing to hold cryptocurrencies.
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