Cryptocurrency Research Report: 7.6 Million South Africans Are Currently Investing in Cryptocurrencies

Influencers and Media Personalities Become Key Opinion Leaders in Cryptocurrency

According to a new study by Kucoin, about 22% (approximately 7.6 million people) of South African adults aged 18 to 60 are cryptocurrency investors. The study also found that 65% of cryptocurrency investors “believe that cryptocurrencies are the future of finance.” The report also said that a large proportion of users seem to prefer digital assets as their favorite way of saving for stable returns.

When explaining how South Africans obtain information about the crypto projects they choose to invest in, the findings reveal that nearly three-quarters (72%) of respondents obtain this information through social media. In addition to social media, influencers and media personalities are key opinion leaders in the field of cryptocurrency promotion.

Regarding South Africans’ apparent preference for social media platforms as their preferred source of information, Kucoin CEO Johnny Lyu said:

“Statistics show that there are 30 million social network users in South Africa and this number is expected to grow to 40 million by 2026. Influencers, TikTok bloggers and creators are growing rapidly in this country and for them, social Media has proven to be an easy source of income. The example of well-known African-American bloggers such as Khaby Lame has encouraged many Africans to spend more time on social networks looking for work, income and dating."

Lyu also pointed out that social media has become the fastest way for users to obtain information. This is especially evident today, when "users' time is fragmented and access to information quickly and efficiently has become a mainstream way of life," he said.

Unequal distribution of wealth in South Africa

Meanwhile, in terms of demographics, the cryptocurrency exchange’s research found that South African cryptocurrency investors are predominantly “male and younger.” An estimated 60 percent of cryptocurrency investors are male, while 42 percent are between the ages of 18 and 30. At the same time, the study also sheds light on the unequal distribution of wealth in South Africa and how low-income earners appear to use cryptocurrencies as a tool to address unequal wealth distribution.

The study explains: “The report’s findings are a good illustration of the inequality in the distribution of wealth in South Africa, with 22% of cryptocurrency investors earning less than $5,000 a year and 16% earning more than $5,000 a year over the same period. $50,000."

While the results of the study do suggest that interest in cryptocurrencies is growing, ongoing reports of South African cryptocurrency investors being defrauded of their funds by scammers have drawn the attention of regulators who are either cracking down on cryptocurrency entities , or warn the public not to invest in cryptocurrencies.

However, despite the regulator’s response, the study found that South African cryptocurrency investors “remain positive” about cryptocurrencies because they have been shown to “improve people’s financial well-being.” This adoption of cryptocurrencies has had the right impact on the local crypto market, which in turn helps eliminate fraud, the report said.