The financial technology (Fintech) industry has been booming in South Africa and many breakthroughs and developments have surfaced. Thus, I’ve put together this blog post summarising a few things you should look forward to in the near future. How does the future of crypto assets in SA look?

Digital Banking Institutions

With the introduction of BankZero, TymeBank, and Discovery Bank, there is no doubt the financial industry will be shaken up, giving customers better choice options. In addition to this, any incumbent banks will be forced to respond by refining their user experiences as well as their customer value propositions.

In light of this, we could expect to see newcomers to the crypto space from other industries. For example, recently, mobile network operators have been reviewing payment-oriented mobile money products. Other non-bank players such as retailers and insurers will also advance into the banking space as a result.

Crypto Assets in South Africa

Due to cryptocurrency’s unrelenting rise in price in 2017 which was quickly followed by a collapse in price; lots of attention has come to the crypto space. Despite some industry speculators calling this the ‘death of cryptocurrency’ I beg to differ. While it’s true the price crash was huge, cryptocurrency’s market cap is still floating around $150 billion. While in terms of a general global asset class this is relatively small, it’s definitely not insignificant.

Whether people like it or not, cryptocurrency is here to stay. It’s unclear when or if cryptocurrencies will rocket in value again, but investing in cryptocurrency is a long term investment. Anyone looking at the valuation of crypto assets on a short term basis isn’t looking at the full picture.

One of the most reputable venture capitalists, Tim Draper, still remains bullish for crypto regardless of the market environment and he plans to keep it that way for a long time. Maybe smart money is still investing in the crypto asset class despite its current volatility.

While this crypto price collapse may have come with an abundance of drawbacks, there was at least 1 positive outcome. The death of ICOs. In just the first half of 2018, ICOs managed to raise almost $10 billion. The bad thing about this is in a study by ICO advisory firm Statis Group; it was found that more than 80% of these ICOs were in fact scams, losing investors significant amounts of money. ICOs are much less attractive to the general public now that crypto prices are low.

Nowadays, to invest in the crypto asset class without losing money you’ll need to do extensive research. Many people who lost money last year through a fraudulent ICO will tell you the same.

What’s Next?

I believe there will be a huge reduction in the number of pyramid schemes and investment scams over time. Many people have started being far more vigilant after falling victim to ICO scams.

At the end of the day, cryptocurrency is already a highly volatile asset class that people deem risky and highly speculative. Though, this doesn’t mean you’re going to lose no matter what. It means that the cryptocurrency industry isn’t one you can just stumble onto and make money. You need to stay for a while, do some research, then make a play when the time is right.

Don’t invest in anything unless you understand the technology and the goals behind the project and can explain it to a 5 year old. Even then, don’t over invest, anything can happen. Expecially as cryptocurrency’s regulatory status is uncertain in manny parts of the world. If you do make the decision to invest in some crypto assets, then be sure to use a trusted cryptocurrency exchange such as iCE3X.

Will you be investing in any crypto assets this year? If so, which cryptocurrency has peaked your interest? Let us know your thoughts in the comments below!

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Disclaimer Notice:

This article is intended to educate and should in no way be seen as investment advice or an enticement to use the platform. Bitcoin is highly volatile with big profit opportunities but you should also remember that you could lose part or all of your investment whenever you take part in any high risk investment. Bitcoin trading is not a regulated industry in South Africa, which in itself carries additional risks. IF YOU ARE NOT AN ASTUTE BITCOIN TRADER, SEEK INDEPENDENT FINANCIAL ADVICE BEFORE MAKING ANY INVESTMENTS.