South Africans feeling good about Bitcoin, says Block report

What 

A recent report by Block, the Jack Dorsey-founded payments company, shows that South African crypto investors are on the whole more positive about the future of Bitcoin than most other nationalities

Why 

Nations from developing countries, where inflation and other factors have led to a crisis of confidence the local currency, are generally more positive about Bitcoin and its future as a payments mechanism and holder of value

What next 

The report notes a close relationship between the inflation rate and attitudes towards Bitcoin. Inflation has steadily been on rise across the globe as nations try and deal with the fallout from the pandemic and global political instability

The story 

The report by Block, titled Bitcoin: Knowledge and Perceptions, notes that 25% of South Africans see value in Bitcoin as a protection from ongoing inflation and the resulting erosion of currency value. Researchers also found an evident correlation between inflation and attitude toward Bitcoin, as countries with higher inflation are more likely to see Bitcoin as an alternative means of transaction or a holder of value. 

Education and understanding of the workings of Bitcoin is another prevalent factor in deciding people’s outlook on the leading cryptocurrency. 

“People who have knowledge about cryptocurrencies overwhelmingly have a positive outlook about Bitcoin’s future,” according to the report. “When we look at non-bitcoin owners who personally know someone who owns bitcoin, 73% say they are somewhat or very likely to buy bitcoin in the next 12 months, compared with just 37% of those who do not know someone who already owns it.” 

The nations most optimistic about Bitcoin are Nigeria, India, Vietnam, Argentina and South Africa.

What’s the story behind Bitcoin as a holder of value? Check out our learning page for more.