5 Reasons Why Bitcoin Is Popular in South Africa

South Africa is one of the most advanced countries in Africa, especially if we’re talking about the latest trends in the world of digital currencies. Despite many fraudulent investment schemes and scams, Bitcoin continues to thrive in South Africa, thus transforming the country into a popular hub for cryptocurrency transactions. 

It is estimated that over 15% of South Africans possess cryptocurrencies and use them for various purposes. While some people have already invested in Bitcoin, others are still trying to grasp the concept. 

If you’re eager to learn about the rise of Bitcoin and its ever-growing presence in South Africa, read on. We’ve done proper research and narrowed it down to the five main reasons why South Africans invest in Bitcoin.

Free of Government Involvement

One of the main benefits of using Bitcoin for transactions is the lack of government involvement. Given that the crypto market is decentralised, banks or other third parties have no power or control over these transactions. 

Since South Africa still hasn’t introduced any laws that would dampen the interest in Bitcoin and cryptocurrencies, the market continues to thrive. However, reports have appeared stating that authorities plan to introduce regulations to curb the growing cases of scams and frauds. 

Rand Volatility

South African rand — the country’s fiat currency, is considered one of the major currencies with the highest volatility. In 2020, its volatility hit the highest mark since the 2008 financial crisis. 

The unpredictability and constant fluctuations have forced investors to look for alternatives. The majority of them turned to Bitcoin as a viable way to protect their wealth and investments from steep price falls.

Widespread Use

Bitcoin still holds first place in terms of market share. Until recently, BTC transactions constituted 66% of the total market capitalisation. However, the percentage is slowly diminishing as other digital currencies rise in popularity. 

Nevertheless, that doesn’t stop South Africans from using Bitcoin. Cryptocurrencies, especially Bitcoin, have become standard payment options in many sectors. 

Recently, Bitcoin transactions in Cape Town region have grown, especially those in the online gambling sector. By the looks of it, the number of both Bitcoin owners and transactions will continue to rise in the following years. 

Top-Grade Anonymity and Security

Thanks to blockchain technology, users can remain anonymous while making Bitcoin payments. Its decentralised nature allows you to perform various transactions without disclosing personal information. Unlike banks, Bitcoin and crypto wallets won’t require sensitive details.

When making online BTC payments, you’ll only have to share a public address while the private key remains perfectly safe.  

Low to Non-Existent Transaction Fees

Certain banks and digital wallets impose impossible limits and fees. Luckily, you won’t experience such extravagant charges when making Bitcoin payments, regardless of the amount. Therefore, even if you’re sending Bitcoin to a friend on the other side of the world, potential fees will be negligible. 

However, remember that you will have to pay conversion fees if you choose online exchanges to buy BTC using fiat currencies.