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There are fewer and fewer Bitcoins available, and miners have to work harder to earn these limited tokens. Just over 18 million of the 21 million available coins have been mined, however reaching the last remaining coin will only be possible by 2140 due to halving.
In a world where money is printing worthless, Bitcoin is the anti-inflation currency, at least in theory. Consumers around the world don’t have the same access to cryptocurrencies, and most people can’t care about Bitcoin and the cryptocurrency space. In South Africa, the reality is that most people who work are paid directly into their bank accounts, and the opportunity to receive payments and buy anything with Bitcoin is limited.
Bitcoin and South Africa
The Fintech space is opening the concept of banking to a new class that was previously not financeable. It is also enabling cryptocurrencies in South American countries where hyperinflation has destroyed their local currencies and economies. In Europe, Banco Sella, an Italian bank, started offering Bitcoin as a stable and secure way to transfer money during closing, acting as an intermediary to manage these transactions. Bitcoin usage examples are growing, and it is no longer the unknown world currency, it is actually very common, but not as common in South Africa.
Therefore, the relevance of Bitcoin’s halving may be lost on most South Africans.However, there will be those people who have realized how mutual funds, rand and a host of other previously safe investment options are no longer high risk. The way we approach trade and anything financial has been forever altered by the closure crisis. The rise in gold price during the closing period is demonstrating the primary move towards security offered by a limited product, so hopefully the Bitcoin argument begins.
Statistics
The performance of the South African rand during the international crisis: on January 1, 2020: US $ 1 = R14.01, and before May 3, 2020: US $ 1 = R18.92. A 35% decrease in rand value.
Bitcoin performance during this crisis since January 1, 2020: 1Bitcoin = R100,552.87, and for May 3, 2020: 1Bitcoin = R168,477.44. A 67% increase in the value of Bitcoin.
This assessment may not be scientific, nor does it imply investment advice, but it assesses the values of the worst humanitarian and economic disaster of the 21st century.
Whether you’re worrying about Bitcoin’s halving or not, one thing is clear: There are other ways to save, spend, and invest, aside from traditional banks.
How do you start investing in Bitcoin or cryptocurrencies?
Before you Google any place to buy any cryptocurrency, you must first find out everything you can about cryptocurrencies. The most important parts:
- Read, read, read, and learn everything you can about how it is stored and transferred.
- Stick to the more established ones like Bitcoin, Bitcoin Cash, Ripple, Ethereum, Litecoin as an example.
- Look for comments about where you plan to buy cryptocurrencies from.
The following three are good options for South Africans to buy and store cryptocurrencies based solely on their reputation in the market. Be careful as there are a lot of scams out there that you want to avoid.
Do your own research and before buying any cryptocurrency as with any other investment or purchase, know the risks and do as much additional research as possible.
This content has been created as part of our independent help program. We are supporting independent journalists and writers affected by the economic slowdown caused by #lockdownlife.
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