The next hot investment bed for cryptocurrencies may take you by surprise. It is not Asia, but South Africa. Located in the world the world’s youngest continent, the country is now pursuing an unprecedented growth and it will see the majority of its population invest in digital gold. Even though the percent is not overwhelming, at 47%, it is a significant and respectable chunk of young Africans that are interested in pushing ahead with an investment of this stature.
Regulatory concerns have not been sufficient to disperse the enthusiasm of would-be investors. According to MyBroadband 2018 Cryptocurrency Servey conducted and concluded in April, revealed the trend in earnest. South Africans are quite willing to dispense with precious FIAT currency to back the rather complicated matter of obtaining crypto currency instead.
It Begins With 50%
According to MyBroadband, nearly 50% of all respondents, whether they had owned cryptocurrencies in the past, were quite positive of the sector and said that they would seek to actively invest in it without hesitating for a moment.
Even though prices for cryptocurrencies are still very much volatile, with even leaders such as Bitcoin and Ethereum hanging in the blance, those young and inexperienced investors are all still very much hot on the trail of cryptocurrencies.
Yes, prices will continue to fluctuate, but this has not abetted appetites where cryptocurrencies are concerned. Investors are thrilled to catch up to the rest of the world and start investing copious amounts in the sector.
Caveat Emptor, South Africa
The enthusiasm with which South Africa and neighboring countries may be plunging into the market for cryptocurrencies is quite laudible. They will definitely reap some benefits, least of all, learning to adopt or seek ways to better-adopt cryptocurrencies & blockchain.
The latter already rings familiar among investors and it is quite worth noting. But if anyhing, South Africa must focus on handling the industry such as it is. This often means accepting the facts for what they are.
The bonanza for all things cryptocurrency may definitely have a price. You will be absolutely thrilled to know that the landscape, patchy as it is, is navigable, but South Africa will also have to enact the best practices from the rest of the world.
How Can SA Stay Out of a Hot Crypto Mess?
Staying away from trouble is certainly something investors in SA will have to learn first hand. No matter how careful they set out to be, they will still run into a variety of practices, which will turn out to be quite ruinous. For the whole sector.
What can be done to stop this from happening?
Regulations are necessary. SA does not exactly sport a pristine-clear track record of all things legal. Its former President was a notoriously corrupt leader with close ties to every shady organisation. To think that the dysfunctional government can tackle the big questions of crypto without looking for a personal gain is rather wishful thinking to say the least.
However, there are many indicators which may suggest otherwise. For starters, the government can appoint people with successful track record in crypto. These people may then move on to offer their own solutions and combine their firsthand expertise with actual people with experience in the field.
Of course, this is just a proposed way of handling the vastly sprawling crypto industry and considering all its effects such as they are. Another way would be to join a more international pact with other countries.
However, with South Korea and Japan sounding a mild retreat from the crypto world, it would be rather important for novices to get the expertise they need.
The Role of Asia in All of This
In a perfect world, you will witness quite the spot-on development of events, including crypto pacts across countries. However, it would be rather difficult to achieve and in all likelihood contentious. South Africa would perfectly spur the future debate around such practices, but it may also be quite unlikely to do so in the near future.
First, the country itself needs to establish some good practices in an overcrowded and yet uncertain segment of the world’s trade. How it handles investors, investment and the future of crypto is important. For the continent and crosscurrents, and the nearly 50% of the population that are interested in plunging head on into it.