Global cryptocurrency exchange Luno has seen an 60% quarter-to-quarter increase in new customers despite ongoing bitcoin price volatility.
In the past week, the price of bitcoin dropped to around R173 000 after highs of R188 000 in the past month.
Marius Reitz, Luno’s GM for Africa, thinks cryptocurrency is in the hype cycle – the process a new technology goes through before reaching mass adoption.
Commentators differ on whether bitcoin is in the “trough of disillusionment” or if it is already climbing the “slope of enlightenment” on its way to general acceptance.
A number of industries, including financial services, as starting to adopt bitcoin and other cryptocurrencies; or adding cryptocurrency trading services, Reitz points out.
Luno believes that we’re getting closer to the point where widespread adoption of cryptocurrency is possible, he adds, particularly in light of Facebook’s announcement of the launch of Libra on its platforms.
One of the main barriers so far has been the difficulty of finding a trustworthy exchange and wallet provider. Another is finding comprehensive, accurate information about bitcoin that anyone can understand without needing to know the finer details of the technology.
Reitz says that Luno is filling these gaps and providing a reliable, secure infrastructure.