Cryptocurrencies popularity is on the rise and every traditional investor is trying to get his hands on some potentially profitable cryptocurrency. Many countries have already legalized the cryptocurrencies trading like Canada, Bulgaria and Australia while on the other hand, some countries have banned it like China, Belgium and Bangladesh. But because of cryptocurrency's decentralized nature, it can't be banned fully.
Cryptocurrencies holds a great potential in near future and many Multinational Companies like Amazon, Mircosoft, Alibaba, Citibank have also invested in contractual obligations with many cryptocurrency projects as they want to use Block Chain technology for their own operations.
Now, a new country also wants to enter the lucrative yet volatile crypto space but cautious of its speculative nature.
This country is South Africa.
Recently their Finance Minster said that Bitcoin has a lot future potential in their country and they might use it even for daily inter-country transactions like Purchasing Groceries, Paying Bills and much more in near future.
Mr. Malusi Gigaba, the Finance Minister himself said that they are looking forward to Bitcoin widespread use within the country. Having seen this foresighted approach by the government, South African Central Bank has come up with sandbox experiments in order to find the reliability of cryptocurreny for their own country in near future.
But if we talk about general population, they are pretty enthusiastic about Bitcoin investing. As per a study within the local demography of South Africa, it has been revealed that on an average, each person holds an equal to or less $380 in his own investment portfolio.
Well, that is a very negligible amount for an investment in cryptocurrencies. The reason being, Cryptocurreny hasn't still legalized by South African government and there are no local exchanges available to buy cryptocurency via Fiat currency in South Africa.
On the other hand, people are highly cautious about the valuation and future value of Bitcoin because in general, people all over the World are using it only as a speculative measure.
The other reasons of People's cautiousness are as follows:
- Decentralized in nature and no central control means the cryptocurrencies can fall to the ground any time.
- No local exchanges means high fees and charges while purchasing cryptocurrencies from the international market.
- Tax regulations in South Africa is pretty strict and people try to avoid any investment instrument which can reduce more tax from their income generation.
Currently Bitcoin is being accepted as a mode of payment among local shopkeepers and service providers but after the South African Government keen interest in Bitcoin potential, one may conclude that they're going to jump in crypto currency train anytime soon.
This will definitely impact the market positively and Bitcoin price may increase in future as well.
Currently Bitcoin is trading at $4300, which is only 14% low from it's ATH and soon it can cross it ATH mark.
Let's just hope for the best.
I advise all the crypto evangelist to keep caution while making an investment in crypto market and invest only after proper research and technical analysis.
Thanks for reading !!
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