One of the reasons why Bitcoin was created was the 2008 global financial crisis. Satoshi Nakamoto had an idea of having a currency that isn’t tied to any single economy. Almost a decade into its existence, cryptocurrencies have proven to be a great alternative to currencies that are suffering from inflation and other political and economic problems.
Recently, South Africa is fast becoming a place where cryptocurrencies are becoming popular. Their local cryptocurrency industry is booming mainly because of the political problems in the country.
Increase in Crypto Interest
Though search interest on Google trends for the “Bitcoin” has dwindled over the last few months, things are quite different today for South Africa. In fact, South Africa has the highest search interest for this particular term. And this interest isn’t simply isolated on the country’s tech-savvy users. Bitcoin is also gaining mainstream attention considering that Bitcoin is trading cheap in the past few months. In fact, Bitcoin last week was trading below $6,000.
Though the price drop may look disadvantageous, there are South African startups that are already on the move showing interest on the crypto market. There are also foreign companies that can take advantage of South Africa’s interest in cryptocurrencies today. There is so much room for international organizations to build global projects within the region. And mainly, this is all due to the increasing number of people that are willing to participate in the crypto market.
Luno, a crypto exchange that is operating in 40 other countries including South Africa is currently allowing users to purchase Bitcoin and Ethereum. In addition to this, there are also other crypto exchanges planning to enter the scene. You have SygniaCoin which is a new cryptocurrency exchange that is run and funded by CEO Magda Wierzycka. What makes Sygnia different? It allows local users to have the option to purchase cryptocurrencies with Rand and will base their rules and regulations on those that are existing in New York.
The blockchain startups are also on the rise. Companies such as Status and Loom Network are now appearing to capture the attention of South African investors.
One of the reasons for the bearish market is the regulatory changes applied by different countries today. You have Japan that is imposing new rules in order for the crypto exchanges to operate in their market. On the other hand, you also have the US Securities and Exchange Commission saying that Bitcoin and Ethereum are commodities rather than securities.
But despite the bearish trend in the crypto market, South Africa has a reason to still go after cryptocurrencies. In fact, there are Venezuelans who are also relying on cryptocurrencies instead of their money.
With so many things happening in South Africa, it isn’t surprising why the country is now excited for things that are crypto-related. And also, there are locals that are looking forward to investing in crypto while they can take advantage of affordable price. Considering the volatility of cryptos and prediction of some experts saying that Bitcoin is going to surpass former all-time high, this could actually be a good move.