Part 4 of our series on: Cryptocurrency in South Africa
Will crypto currency be around in 5 years
The Future of Cryptocurrency in South Africa may be uncertain, however it is very likely to still be around in 5 years.
With the political and economic instability in South- Africa you may be wondering if it will still be around in five years.
If you’ve been following our other articles in this series on South-African cryptocurrency, you will know that we have already comprehensively covered the following:
- Risks of Crypto trading in SA
- Legal & Regulatory Framework
- Tax Implications
- Best Exchanges
- Trading Fees
- Major players in the industry
As we already cover the current state of crypto in South Africa in detail in the other articles, we are gonna keep our gaze focused forward while keeping in mind the rapid growth in popularity gained by Cryptocurrency in South Africa in recent years.
Is cryptocurrency a good investment for South-African in the future?
With increasing adoption and technological advancements, it’s hard to imagine it disappearing anytime soon.
The benefits of decentralized, digital currency are numerous, and as more individuals and businesses begin to recognize and utilize these benefits, the demand for cryptocurrencies will only continue to grow.
Nevermind, the rapid rise of government backed CBDC’s with even the United Kingdom recently announcing their plans for a Digital British Pound.
That is not to say that every coin and token is going to increase in value. There are currently around 23000 different crypto coin projects in existence!
A staggering amount considering that 6 years ago we were under 5000!
Sure, you can make money by investing in them at the right time or by trading them on margin on a platform like Bybit, but for the most part, if you have not put your money into something that has practical utility or community adoption, you are going to lose it, very quickly!
How do I make sure I don’t invest into Shit coins?
Check out our article on the 10 currencies with solid foundations and the best earning potential in 2023, where we go over how to differentiate between a good and bad crypto investment by going over some practical examples and tokenomics!
Here is the Criteria for a good investment opportunity from that article:
Cryptocurrencies with high potential are determined by:
Will South Africa have their own digital currency?
The South African Reserve Bank has been exploring the possibility of creating a digital currency as a legal tender. The adoption of digital money would have various implications, including increased efficiency and security of transactions.
However, it’s important to note that the development and implementation of a digital currency would require significant infrastructure and regulatory changes, and it’s unclear when or if it will become a reality in South Africa.
Can Cryptocurrency replace money in South-Africa?
Even though we may be getting a CBDC, Cryptocurrency is unlikely to completely replace money in South Africa.
Governments are unwilling to give up the control they hold over the financial system. The American IRS has a contingency plan in place to collect taxes in the event of an apocalypse, and SARS as the only truly functional government department in South-Africa is no less tenacious.
This makes it very unlikely for crypto to ever replace the Rand is South-Africa’s reserve currency.
A much more likely scenario is that we end up with a CBDC linked either to the Dollar 2.0 equavelent the US and IMF come out with, or to the new emerging gold backed competitor back by BRICS, depending on how South Africa chooses to align themselves politically.
So as long as you have community, practical utility and continued adoption, the future of cryptocurrency in Aouth Africa looks good!
Is cryptocurrency a good investment for South Africans in the future?
Yes, the Future of cryptocurrency in South Africa is Bright!
While a lot of useless coins and projects fall away, as we continue with the ever expanding digital age, some of the technologies will be adopted into mainstream application. This may be through digital identity or through financial services and products created on their blockchains that solve problems, and there is great value in that.
Where there is value, profit flows naturally
Trading or investing in crypto is just like every other market, it’s about identifying the right opportunity and investing wisely, while managing your risk!
Let’s take a look at what we can expect to happen over the next few years!
The Future of Cryptocurrency in South Africa in 2024 and Beyond
What Does the future hold for Cryptocurrency in South Africa?
With the decreasing value of the rand, South-Africans can definitely benefit from investing into assets not directly linked to the wonderful decisions of the South-African government!
What we can expect going forward
Increasing Adoption Rates
As South-Africas infrastructure and online consumer base grows, more people become aware of cryptocurrency and its potential benefits, adoption rates may increase.
Additionally, the growth of the fintech industry in South Africa may lead to more businesses and individuals embracing digital currencies.
The regulation of cryptocurrency in South Africa may play a significant role in its future. If the government implements clear and favorable regulations, it may encourage more businesses and investors to adopt cryptocurrency.
However, if regulation remains unclear or unfavorable, it may stifle growth and adoption.
To look into the unique impact will have on the future of cryptocurrency in South Africa we need to look both at out Physical and Financial infrastructure.
Blockchains, even low energy proof of stake models, still require a powered up computer to run, and networks over which to communicate.
If state infrastructure keeps declining, the use and implementation of cryptocurrency could rapidly decline.
On the other side of the coin the infrastructure needed to support cryptocurrency transactions is still in its early stages in South Africa and holds limitless potential.
The application of blockchain technologies on problems like digital identity may even turn out to be a life line that saves us from the plague of corruption thinly hidden in our economy.
As technologies advance and regulation becomes more prominent, we are very likely to see blockchain technologies take over our transactional system, as well as our taxes.
As this picture starts to portray reality more an more accurately, the importance of decentralized and independent financial assets are likely to become more apparent.
Along with a increase in the desire for transactional privacy, the adoption of crypto and blockchain related transactions and technologies are likely to increase exponentially in South Africa over the next 5-10 years.
According to Triple-a.io in their fantastic statistical analysis of crypto users in South Afirca, more than 86.4% of the South-African public have heard about cryptocurrency.
By taking a look at some of these charts, we can determine that Public opinion is clearly split into two camps.
Younger generation, with smaller savings, but a much wider rate of adoption, and better understanding on the application and impact of some of blockchain and the potential its application holds on a societal level.
This generation has less wealth, but more time.
Now, this wealth distribution when combined with the problems and costs of dealing with an aging population are a real concern, however we can also assume that as the younger generation matures, and continues to learn more about these technologies so to the future of cryptocurrency in South Africa is likely to take a shift towards one of better public opinion
If you are interested in more information surrounding the future of cryptocurrency in South Africa and Africa, be sure to check out:
Frequently asked questions about Crypto
Frequently asked questions about crypto in South-Africa
Frequently asked questions about crypto in Africa
And if you found this article helpful
Be sure to also check out the other articles in this 5-part series:
- Introduction to cryptocurrency trading in South Africa
- Legal and Regulatory Framework for Cryptocurrency Trading in South Africa
- Tax Implications of Cryptocurrency Trading in South Africa
- Future Developments and Trends in the Cryptocurrency Market in South Africa
- Picking the right exchange for trading cryptocurrency in South-Africa
You can also check out our other Crypto & investment content
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