According to a KLA study, up to 25% of the entire population in South Africa owns cryptocurrencies. While the majority are what seem to be low-value investments, the number of crypto holders in this African country is rather surprising. Moreover, the KLA also reports that up to 47% of South Africans are in possession of crypto assets.
According to Tessa Nowosenetz of KLA, this is due to the fact that a vast number of holders are yet to figure out how crypto really works.
25% of South Africans possess an average value of cryptocurrencies that is between $7 and $70. 13% hold cryptocurrencies that are worth between $70 and $700, while only 3% own crypto assets that are worth more than $3.400. Consequently, according to the study, 53% of South Africans do not hold any crypto assets whatsoever.
Furthermore, the study reveals that up to 20% of South Africans are into crypto simply for the purpose of diversifying their portfolio. In addition, 16% state the reason for buying crypto to be simply because ‘everyone can do it’. Out of all respondents, 36% revealed intentions to keep making crypto purchases in the future. Finally, just a small number of 4% admit that the real reason for holding crypto is the lack of regulations.
Tessa Nowosenetz believes that the number one reason for this interest is because people see crypto as fast and easy money. Especially in the short term. Eventually making for the biggest reason why 25% of the population in South Africa currently owns cryptocurrencies.
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