Nearly half (41%) of cryptocurrency users in South Africa fear losing money due to volatility, and no longer use digital currencies, according to the latest Kaspersky research. Additionally, 10% of local respondents have already lost money and stopped investing as a result.
The recent market downturn in 2022, coupled with ongoing malicious activity, has led to a liquidity crisis, and left many crypto owners feeling uncertain about their investments. These challenges frighten holders of digital currencies, leading some to avoid investing or even leave the industry altogether. Trends like these are among the main factors Kaspersky’s latest survey identified leading some cryptocurrency enthusiasts to stop using digital currencies.
Currency volatility is a major barrier to the wider adoption of cryptocurrency. In fact, 41% of local respondents said they were afraid to use crypto because they do not want to risk losing their money. Unfortunately, 10% of respondents had already experienced losses due to a drop in currency values. Concerns about losing money due to currency volatility also extend to those who don’t own crypto.
Other barriers to adoption include the lack of tangible assets backing crypto (8% of local respondents) and the risk of revealing personal data during a cyberattack (9% of local respondents). These findings suggest that stability and security are key issues for the wider adoption of cryptocurrency. In fact, 8% of local respondents no longer trust crypto at all.
When it comes to user presumptions, most of the respondents from South Africa (42%) stated that their expectations from cryptocurrencies were not fully met, while only 29% are satisfied or their expectations are even exceeded.
“Despite the challenges currently facing the cryptocurrency industry, it is important to remember that it is still a relatively new and innovative space with tremendous potential. As with any emerging technology, there will be growing pains and setbacks, but the long-term prospects might still be bright for crypto. By prioritising security, cryptocurrency enthusiasts can minimise the risk of losing money or personal information and protect against threats that depend on them,” comments Marc Rivero, senior security researcher at Kaspersky’s Global Research and Analysis Team.