Bitcoin is growing in popularity all across the African continent. However, in South Africa, the cryptocurrency is witnessing meteoric spikes, unlike anything many have seen. SA searchers Googled ‘Bitcoin’ the fourth-most worldwide in 2020. In addition to this, research shows that millions of USD worth of Bitcoin are traded in SA monthly.
Increasing technological literacy across Africa is one key to the puzzle. However, there are many good reasons why people across South Africa are diving into BTC and other cryptos.
Ease of Access for Citizens and Businesses
Arguably, in some cases, it is easier to set up with Bitcoin in South Africa than it is to open a bank account! Many people start using crypto exchanges in favour of managing a bank card. There is, of course, also the matter of there being a slight restriction on BTC. It is easier to trade foreign currency through digital exchange.
It is quicker, less restrictive, and more predictable. Blockchain ledger technology also ensures greater security at either end of the transaction.
SA is also becoming a hotspot for businesses diving into crypto, largely thanks to Bitcoin fever. For example, Bitcasino is growing its South African user base steadily over the months and years. It’s never been easier for SA gamers to log in and play casino tables online, thanks to BTC’s barrier-breaking.
Traditional Banking is Complex
There is always the argument for fiat money and traditional banking becoming outdated. However, more significant concerns surrounding how complex managing the South African Rand can be. Opening up accounts in SA will require you to hand over lots of details and careful management for years.
Banking issues are rife the world over. However, it stands to reason that this will also be key to SA swings in the direction of BTC. Bitcoin and crypto’s lack of bureaucracy means that transfers are swift and reliable. There is no need to hang on for a transfer to take weeks to finalise.
This instant solution to money transfer and trading is appealing all over the world. SA, however, is one of a handful of countries that have woken up sharply to the future of crypto.
The Rand is Volatile
Another argument for Bitcoin’s growth in South Africa relates to the Rand. Fiat money in SA is extremely popular in forex pairings, largely thanks to its big spikes. However, anyone well-versed in trading will soon tell you that this means it’s volatile. Volatility means while you’ll get big spikes, you’ll get big dips, too!
This, many believe, has led to the SA Rand growing weaker. Volatility offers little confidence in the grander scheme. That’s another reason why many are swinging towards Bitcoin in the country.
While BTC and crypto at large are also volatile by nature, many people prefer security. As mentioned, blockchain technology is altogether easier to rely on for many reasons. It’s easier to see transaction origins and to avoid confusion further down the line.
What Now For Bitcoin in South Africa?
Bitcoin is likely to remain popular in South Africa for the time to come. Regulations are emerging to help restrict money laundering. However, for the most part, BTC remains free and unfettered in the country.
How long will this last? Things aren’t so clear. Regulation, many in the banking industry will state, is a straightforward way to ensure safety. However, many crypto investors will tell you that BTC is inherently secure.
In any case, in a changing global climate, it will be exciting to see where SA takes BTC next.