Purple Group, a South African financial company announced recently that it will be adding two cryptocurrencies, Bitcoin and Ethereum, to its online trading platform. As stated by a representative, the decision is necessary as a result of strong demand from clients. According to a recent study, most South Africans still believe a lot of money can be made from crypto investments.
The Blockchain cures all ails. It is an immutable (unchangeable) and unhackable database. It lowers transaction costs and enables trust between strangers. It unshackles us from authority. It will revolutionize insurance: Executives everywhere must pay attention. Blockchain is the new plastic. Or so the myth goes.
Numerous articles have explained how using a blockchain will lower costs, increase profitability, and produce a clear competitive advantage for insurers. Fewer articles cover blockchain mechanics and magic—yes, it contains some magic. Executives need to have a basic understanding of the mechanics and an appreciation of the magic in order to assess the applicability of blockchains to their insurance business problems. This article will step back from the hype and explain how a blockchain works. It will highlight some surprising capabilities and debunk some confusing myths and inaccuracies.
Blockchain is a Database
A blockchain is a database. Blockchain databases are generally distributed, that is, stored on multiple machines rather than held by a single authority.
African financial service giant Old Mutual just released the 2018 Savings and Investment Monitor survey for South Africa. The study shows that 38% of the residents and citizens of Africa’s second-biggest economy who were already aware of the existence of digital assets wished they had put their money in cryptocurrencies.
Old Mutual Limited is a pan-African investment, savings, insurance, and banking group. Established in 1845 in South Africa, it had more than 12 million customers and ZAR1.2 trillion funds under management as of 31 December 2017. It is listed on the Johannesburg Stock Exchange, Zimbabwe, Malawi, Namibia and London Stock Exchanges.
The value of cryptocurrency as a concept and as an investment vehicle continues to stir debate in South Africa’s financial and investor circles.
All investments carry their own set of risks and reward variables, and with newer investment vehicles like digital currency, the two questions investors should ask are: how much and over how long?
“As with most, if not all investments, research is key and especially so with cryptocurrency, which is still in its infancy,” says deVere Acuma Head of Africa, Gavin Smith.
Old Mutual has released its 2018 Savings & Investment Monitor, focusing on the finance habits of every day South Africans.
The report is based on more than 1,000 face to face interviews, from 26 April – 26 May 2018, which were weighted to be representative of the South African working metro population.
Big players are continuing to roll out cryptocurrency services in South Africa, from international exchanges to major asset managers.
While the country may fall behind in other sectors of cutting-edge technology, South Africa’s cryptocurrency industry is alive and well.
Locals have shown a great interest in cryptocurrencies, with South Africa consistently ranking highest worldwide in search interest for “Bitcoin”, according to data from Google Trends.
The cryptocurrency industry allowed several businesses to start new investments which have been very profitable. But cryptocurrency exchanges have provided extraordinary returns to their funders. This may be one of the reasons why Sygnia is moving to that industry.