South Africa is still an emerging Bitcoin market, but it is growing, as more and more citizens come around it seems the best use of the digital currency is as a store of wealth, especially compared to the failing local currency.
It is estimated that about 100,000 users are utilizing the two local exchanges, Luno and Ice3X. Ice3X founder Gareth Grobler admits that although this figure is tiny, especially in comparison to Asia, it is a positive step for the digital currency in one of the most forward thinking African nations.
World wide acceptance
Indeed, South Africa is moving with the times as the citizens flock towards these local exchanges to be a part of the Bitcoin boom.
Tech analyst Simon Dingle said: “Luno and other local exchanges are seeing an influx of new users given the recent rise in the price of Bitcoin. It is certainly becoming more popular all over the world and South Africa is no exception.”
Luno Marketing officer Werner Van Rooyen said Bitcoin was becoming more mainstream in South Africa. “We see it in many ways‚ not just from our internal metrics – including new customers‚ active users‚ application downloads‚ trading volumes and interest from banks and institutional investors — but also from other places: trading volumes that keep growing; increased merchant adoption; increased understanding by investors‚ regulators and banks; press coverage; and the number of Google searches on Bitcoin.”
Keeping wealth off the floor
Predominantly, South African’s are using Bitcoin as a store of worth against the local currency, the Rand, which is constantly suffering inflation.