• In June 2023, Kasi Insight, a renowned market research firm, released a comprehensive report titled “The State of Cryptocurrency,” shedding light on the evolving relationship between Africans and digital currencies.
• This insightful report was based on the responses of 9672 adults from 19 African countries, providing a window into the awareness, ownership, and sentiment towards cryptocurrencies across the continent.
• Cryptocurrency’s presence has grown remarkably across Africa, with 66% of the surveyed population having heard of cryptocurrencies.

Cryptocurrency, a term that once existed on the periphery of financial discussions, has now firmly established itself in the global economic narrative. In June 2023, Kasi Insight, a renowned market research firm, released a comprehensive report titled “The State of Cryptocurrency,” shedding light on the evolving relationship between Africans and digital currencies. This insightful report was based on the responses of 9672 adults from 19 African countries, providing a window into the awareness, ownership, and sentiment towards cryptocurrencies across the continent.

Kasi insight

Kasi Insight is a prominent African data and insights provider specializing in deciphering regular African behavior through survey-based data. With a monthly engagement approach, the organization translates data into actionable insights. Their self-service platform offers clients extensive consumer insights, detecting early market shifts and identifying growth opportunities. The team’s diverse expertise spans market research, consulting, banking, and economics, incorporating insights from various disciplines for survey design and statistical analysis. Kasi Insight’s unique amalgamation of knowledge converts survey data into easily visualized, normalized formats, facilitating strategic decision-making in the African data arena.

A continent’s awareness and ownership

Cryptocurrency’s presence has grown remarkably across Africa, with 66% of the surveyed population having heard of cryptocurrencies. This figure signifies a substantial awareness highlighting the growing penetration of digital financial instruments, even in regions where traditional banking systems might not be as pervasive.

However, the chasm between awareness and actual ownership remains significant. Astonishingly, 82% of those surveyed have never owned any cryptocurrency. This discrepancy could stem from various factors, such as a lack of access, understanding, or trust in these novel assets. The key takeaway here is that awareness is not enough. A lot more work needs to be put into the factors holding back cryptocurrency adoption.

Socioeconomic factors: A tug of influence

The report also underscores the influence of socioeconomic factors on cryptocurrency ownership. Notably, individuals with higher income levels, those earning more than US$4500, are more likely to own cryptocurrencies. This correlation between income and ownership suggests that this demographic might perceive digital currencies as investments or assets rather than speculative tools. This is a two fold takeaway as it suggests that those with more money have money to invest in crypto while also speaking of the importance of financial status in access.

A glimpse into the crypto portfolio

Delving into the portfolio of African cryptocurrency holders, a distinct pattern emerges. Despite its origins as a playful and somewhat satirical cryptocurrency, the meteoric rise of meme-inspired Dogecoin has managed to capture the interest of 21% of the surveyed population. On the other hand, the specter of scams haunts the cryptocurrency landscape, with 18% owning Onecoin, a cryptocurrency known for its dubious nature.

Bitcoin, the poster child of cryptocurrencies, reigns supreme with 52% ownership among surveyed Africans. Its widespread recognition and comparatively stable nature compared to newer entrants likely contribute to its popularity in the region. While Bitcoin’s position at the top is par for the course the fact that a memecoin is in second place deserves some attention. Furthermore, Onecoin, which was revealed to be a scam taking 3rd place is a further sign of the times.

Motivations for investment

Why do Africans invest in cryptocurrencies? The motivations are as diverse as the continent itself. A significant 35% of respondents intended to invest in cryptocurrencies to achieve rapid financial gains. This points to the allure of the potential returns the volatile yet promising crypto market offers. A further 19% admitted to investing merely for the thrill and excitement, reflecting the speculative and entertainment aspects associated with cryptocurrencies.

The “Fear of Missing Out” (FOMO) phenomenon, a powerful psychological trigger, accounted for 17% of cryptocurrency investments. This highlights the impact of social dynamics and the power of trend-following in influencing financial decisions. This is symptomatic of the worldwide crypto market which is still dominated by individuals and speculative capital.

Holding patterns and advice seeking

Regarding holding onto their cryptocurrency investments, 64% of users reported having digital assets for less than two years. This relatively short holding period might be attributed to the market’s inherent volatility and the speculative nature of cryptocurrency investments. As highlighted before the crypto market is awash with short term speculative capital and this amplifies the volatility in the market.

Interestingly, despite the rise of digital communication and fintech platforms, traditional sources of advice still hold sway. The report revealed that 32% of respondents seek advice from friends and family, while 37% turn to colleagues for cryptocurrency insights. This underscores the significance of personal connections and word-of-mouth recommendations, even in the rapidly evolving realm of cryptocurrencies. As for the advice sources we can see that crypto is very much outside the mainstream. With almost 70% getting advice from non professionals. Perhaps one of the most important insights for crypto promoters.

Trust deficit in cryptocurrencies

The report also delved into the sentiment of distrust that some Africans harbor towards cryptocurrencies. 49% of respondents expressed skepticism and mistrust towards these digital assets. This skepticism could stem from various sources, including concerns about security, regulatory uncertainties, and a lack of understanding of the underlying technology. As we discovered through the slow adoption of Nigeria’s eNaira some of the mistrust has been sown by reluctant government attitudes towards digital currencies. This has been exacerbated by the space being taken advantage of by scammers and other bad actors.

The dance of awareness and usage

A profound correlation emerged from the report’s findings – awareness and usage of cryptocurrencies are tightly linked. As more Africans become aware of cryptocurrencies, many leap ownership. This correlation underlines the importance of education and awareness campaigns to bridge the gap between knowing about cryptocurrencies and feeling comfortable enough to invest in them. Education and awareness are an important part of getting people into crypto.

The Kasi Insight June 2023 “The State of Cryptocurrency” report is a comprehensive snapshot of the African cryptocurrency landscape. It highlights the strides cryptocurrencies have made in global awareness and ownership. While attention is high, ownership remains relatively limited, with varying motivations driving investment decisions. Socioeconomic factors, including income levels, play a significant role in determining who enters the crypto market.

As cryptocurrencies evolve and integrate into global financial systems, bridging the trust deficit and addressing skepticism will be crucial. Furthermore, the interplay between awareness and usage emphasizes the need for targeted educational initiatives to empower Africans with the knowledge needed to navigate this transformative financial landscape.

For reference countries surveyed in the report were; Angola, Algeria, Cameroon, Cote D’Ivoire, Congo, DRC, Egypt, Ghana, Kenya, Morocco, Mozambique, Namibia, Nigeria, Senegal, South Africa, Tanzania, Tunisia, Uganda and Zambia.