Bitcoin in South Africa — Everything You Need to Know in 2020
Bitcoin in South Africa is thriving pretty well, so do any other cryptocurrencies around the area. Yet, confusion still surrounds what Bitcoin is and why Bitcoin has value. To cut through some of this confusion, we’ll explain it here with a few key fundamentals. Is Bitcoin the investment opportunity of the 21st Century? Does Bitcoin have any real value? What is the best way to buy Bitcoin in South Africa? More importantly, is Bitcoin even legal?
What do you need to know about Bitcoin in South Africa?
Here’s your guide to understand one of the most popular cryptocurrencies in South Africa, and in the world:
Bitcoin is famous as being the world’s first cryptocurrency. In total, there will only ever be 21 million Bitcoin. However, each Bitcoin is made up of 100,000,000 smaller units known as Satoshis or sats. Each of these can also be transacted peer-to-peer over the Bitcoin network.
Bitcoin, in effect, is a form of digital currency and a global payment system at the same time. But, the Bitcoin payment network exists independently of any bank, government, or third party.
Its total decentralization network means that neither banks nor governments can interfere with Bitcoin payments. And as a peer-to-peer payment network, Bitcoin makes it possible to settle global transactions in seconds, minus traditional high fees for money transfers. Then, because only 21 million Bitcoin will ever be in existence, Bitcoin grows scarcer every day. This leads to Bitcoin gradually increasing in value.
Bitcoin in South Africa is not illegal. This means that all South Africans are at liberty to buy or trade Bitcoin just like people in most other countries. That being said, Bitcoin does not benefit from official recognition as a form of currency.
Not benefiting from official recognition means that government regulation of cryptocurrencies is almost non-existent. But, South Africans do still have to pay tax on Bitcoin investment profits.
Although we still have a long way to go in terms of cryptocurrency regulations, we are making progress slowly but surely.
See a tax guide on cryptocurrency, Bitcoin and South Africa here.
Easy Crypto is a new South Africa Bitcoin exchange where it is possible to buy Bitcoin South Africa instantly with SiD EFT‘s, or manual bank deposits.
As well as Easy Crypto, several international exchanges also serve users in South Africa. Only one, most of those are peer-to-peer exchanges, which makes Bitcoin trades at a high premium. If you want to buy Bitcoin for current market prices, Easy Crypto is, therefore, your best option.
A whole Bitcoin can cost hundreds of thousands of Rands to purchase. But to be remembered, it is not necessary to buy a whole Bitcoin to invest and (possibly) make a significant profit at some point.
As already mentioned, it is possible to buy fractions of a Bitcoin in the form of Satoshis. At Easy Crypto, it is also possible to invest in over 70 other top market cap altcoins, the biggest selection in South Africa.
Bitcoin was the most profitable investment of the decade between 2010 and 2020.
According to Bank of America, a mere $1 (U.S.) investment in Bitcoin in 2010, saw some early investors make profits of up to $90,000. Common sense says that similar returns will not be likely in the coming decade. Still, Bitcoin has a lot of investment potential.
Every four years, the number of new Bitcoin entering circulation is cut by 50%. This is set to happen this year in May 2020. Each time this happens, Bitcoin becomes scarcer. Bitcoin prices then rise as a result.
If you already own Bitcoin, see our guide on how to trade and sell Bitcoin here, in South Africa.
No one can predict with any certainty what the Bitcoin price will be in 2020. However, many believe that Bitcoin will continue to climb in value over the next decade. If they’re right, even a small investment today could prove lucrative.
Are you ready to invest? If so, visit our website to buy your first Bitcoin today with Easy Crypto 🙂