According to a study by KLA, a market research and data specialist, around 47% of South African adults own cryptocurrencies, with the majority of that number holding assets of little value. In addition, the study shows that 36% plan to invest in crypto in the future.
South Africans are still experimenting with cryptocurrency
Although the KLA results say that 47% of South Africans are owners, the Businesstech report, which cites UCK’s Tessa Nowosenetz, explains that the value of the crypto-assets it holds is still very low. This low average suggests that many are still trying to understand crypto. To emphasize this point, Nowosenetz said:
While this percentage is high, the amount invested is small. This suggests that the majority of South African crypto investors are experimenting and trying without making significant financial commitments.
According to the results of the study, 25% of respondents who own cryptocurrencies have between $ 7 and $ 70 (or between R100 and R100) invested in digital assets. Fewer South Africans – around 13% of respondents – own cryptocurrencies worth between $ 70 and $ 700.
Only three percent of respondents said they owned digital currencies valued at over $ 3,400. Despite a significant number of people owning cryptocurrencies, the majority of South Africans (53%) are not crypto holders, the study found.
Many attracted to quick gains
Businesstech notes that, despite their cautious approach to crypto-investing, many South Africans remain curious and “interested in learning the ropes while engaging in a process”. However, the report notes that many are venturing into crypto because they are interested in “making a quick profit”. Nowosenetz explains:
The biggest appeal and benefit of crypto is the perception that there is the opportunity to make significant gains on your investment in the short term, with 43% citing this as the main reason for interest in crypto.
The report also shows that around 20% of those who dig into cryptocurrencies do so because they want to diversify their portfolio. On the other hand, around 16% of respondents said they are interested in using or trading cryptocurrencies because “anyone can”. The study shows that 36% plan to invest in cryptocurrencies in the future and that only four percent of respondents cite the lack of regulation as the main reason for choosing cryptocurrencies.
What do you think of the results of the KLA survey? Let us know what you think in the comments section below.
Photo credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer of liability: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement for any product, service, or company. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author are directly or indirectly responsible for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.