Cryptocurrency is taking over the world, and young South Africans are leading the charge into the crypto space.
The world of blockchain, decentralised finance, and cryptocurrency can be incredibly intimidating for many. As technology advances, it can sometimes feel confusing and foreign to those not considered “digital natives” or the generation raised on the internet. So it is unsurprising that crypto is more popular among millennials, digital immigrants, and of course, the generation of digital natives, Generation Z.
Rael Demby, CEO of The South African Gold Coin Exchange & The Scoin Shop, says, “The younger generations are typically the ones to bring about change, so naturally they are adopting Crypto - but what they are doing with their crypto profits is what is really interesting”.
Some of cryptocurrencies’ early adopters are now billionaires, among the wealthiest people globally, and other investors have made massive profits. So what can people do with their earnings, and how can they diversify their portfolio? SAGCE & The Scoin Shop now accepts specific cryptocurrencies (bitcoin, Ethereum, USD Coin, Litecoin, Dai, Bitcoin Cash) for gold coins and collectables. So people can cash out crypto profits and buy gold.
The cryptocurrency ecosystem is growing rapidly. More brands and companies are moving into the space of accepting crypto for goods and services—setting up payment systems that enable bitcoin transactions. Demby adds, “The Scoin Shop’s innovation is a bold move and shows an open view to a new and rapidly growing asset class. We see younger South Africans very accepting of using crypto to buy gold coins.”
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So then, people can use their crypto to buy physical gold coins and collectables. That’s an exciting strategy which The Scoin Shop is pioneering. Demby tells us that since The Scoin Shop introduced this payment innovation late last year, he has seen strong demand for the option of “coins for coins” and expects this trend to continue going forward. “ This is where we see the irony, Millennials and Gen Z leading the charge in crypto, a totally intangible asset class - but then choosing to buy gold coins - the oldest form of currency—so embracing disruption but ultimately returning to physical gold and silver”.
So why use cryptocurrency for gold? Buyers of physical precious metals are motivated by the fact that gold and silver offer a safe store of value, are a currency hedge, combat inflationary concerns and are moveable. “For most, wealth preservation is a focus. As a result, we are seeing a huge interest in gold bullion, silver and numismatics. Cryptocurrencies may offer many advantages, but nothing beats the tangible security of holding genuine gold coins in your hand. Clients find that very comforting and appreciate that gold provides wealth preservation.”