Survey Reveals People in Other Countries Buy Crypto With Different Objectives
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Survey Reveals People in Other Countries Buy Crypto With Different Objectives

About 69% of crypto investors in Kenya, Nigeria, and South Africa do so to secure their family's wellbeing.
Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.

Blockchain technology is becoming increasingly popular globally for a myriad of reasons. It is seen as a risky venture in more developed countries, with the potential for yielding significant returns for investors and provide life-changing wealth. Meanwhile, in Africa and, to a larger extent, other developing regions, investors have a different view of this owing to the numerous possibilities cryptocurrencies provide. 

Despite the volatile nature of the crypto markets, investors from these regions know that with discipline and a defined plan, cryptocurrency offers them a gateway to a comfortable life for themselves and their loved ones.

The Unbanked Make-Up The Numbers

With 57% of the African population currently unbanked, data from a survey conducted by Luno shows that only 3% of crypto investors from the region do not have an investment plan.

About 69% of crypto investors in Kenya, Nigeria, and South Africa do so to secure their family’s wellbeing. 48% put money into crypto to afford education for their children, while 39% and 43% invest to purchase a home and leave a fund for their children/grandchildren respectively.

Other countries involved in the survey had varying priorities as well. About 41% of Australian respondents chose to invest in property. Indonesia, Malaysia, and the UK had 49%, 57%, and 36% of investors using the investments to build their pension pots.

A lot of Africans have turned to digital assets as a means of livelihood. This explains why the crypto market has been adopted widely in the region. Data from Usefultulip shows tremendous growth so far, and from many indications, this may not slow down any time soon.  

Image credit: Usefultulips

African Countries Have The Greatest Adoption Rates

Looking at the data reveals that Nigeria, South Africa, Kenya and Ghana have continued to top the charts in terms of total volume traded on two peer-to-peer platforms (Paxful and Localbitcoins). As of last month, these figures stood at 9.3, 1.8, 4.7, and 2.8 million USD respectively. Nigeria has maintained its dominance on this list due to the looming economic hardship and high inflation that currently plagues the country.

Meanwhile, remittances have proved to be another area with a wide gap in developing countries. According to the World Bank, the cost of transferring an equivalent of $200 to sub-Saharan Africa is 9.3%. This fee is a far cry from what is obtainable in other regions. In Russia, Central Asia, and Southeast Asian countries, money transfers only cost 1.3% to 1.7% of the total amount to be sent.

Image credit: World Bank
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Millennials Lead The Way

A close look at the demographic that invests and supports Bitcoin and cryptocurrencies reveals young adults between 18 and 44. A YouGov poll has revealed that from a pool of 4,912 US citizens, 27% favor using Bitcoin as a legal tender. It is worth stating that 80% of this group are young adults. 

In most cases, these takes tend to be lower for young adults, thereby increasing their risk appetite. This makes them more inclined to emerging fields like cryptocurrency. Also, millennial households have become the highest earners in the US. Their favorable disposition to Bitcoin would see them invest in it for the long term to help cater to their families’ needs and add to their retirement funds.

Among all the regions needing to adopt cryptocurrency, the sub-Saharan area appears to be at the forefront. Whether or not the trend continues, this development sheds light on the growing use case of digital assets worldwide.

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Do you buy crypto assets? If so, why? Do you know how you would like to spend your gains? Let us know in the comments below