A recent Kucoin study found that 22 percent of adults in South Africa or around 7.6 million people of the country’s adult population are cryptocurrency investors.
According to the report, 65% of cryptocurrency investors “believe crypto to represent the future of finance”, indicating a significant portion of users appears to select digital assets as their preferred method of savings in order to generate steady returns.
According to the study’s findings, nearly three-quarters (72%) of respondents obtain this information from social media, which explains how South Africans prefer to learn about the cryptocurrency projects they choose to invest in.
Influencers and media figures were discovered to be the primary opinion leaders in the crypto marketing area, in addition to social media.
Kucoin CEO Johnny Lyu made the following remarks in response to South Africans’ ostensible preference for social media sites as their primary information source:
“According to Statists’ data, 30 million South Africans use social networks, and by 2026, that number is expected to reach 40 million. Influencers,
TikTok bloggers, and other producers are proliferating quickly across the nation as social media has proven to be a simple and accessible way for them to make money.
“Many Africans are being inspired by the success stories of well-known bloggers of African heritage like Khaby Lame to spend more and more time on social media in quest of employment, income, and dating.”
The quickest way for people to get information, according to Lyu, is now through social media. He claimed that this is especially true today when “users’ time is increasingly fragmented and swiftly and effectively accessing information has become a mainstream way of life.”
According to the cryptocurrency exchange’s report, the majority of South African crypto traders are “male and younger generations” in terms of demographics. An estimated 60% of cryptocurrency investors are men, and 42% of them are assumed to be in their twenties or thirties.
The report also highlights how low-income individuals appear to utilize cryptocurrencies as a means of redressing the unequal wealth distribution in South Africa.
The study’s findings, according to the newspaper, “clearly reflect the unequal distribution of wealth in the nation, as 22% of cryptocurrency investors make less than $5,000 a year, while 16% earn more than $50,000 during the same period.”
Although the study’s results do indicate that interest in cryptocurrencies is rising, regulators have taken notice of the persistent reports of South African crypto investors losing money to scammers.
In response, they have either cracked down on crypto entities or cautioned the public against investing in cryptocurrencies.
Nevertheless, the study discovered that South African cryptocurrency investors are “maintaining a favorable attitude” toward cryptocurrencies despite the response from regulators as these are proven to be “capable of boosting people’s financial situation.”
According to the survey, such cryptocurrency acceptance is positively affecting the local crypto industry overall, which in turn aids in the eradication of dishonest players and individuals.
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