Bitcoin prices have risen after Japan announced that it will accept the cryptocurrency as a legal payment method from April 2017.
Reports stated that bitcoin’s value rose by almost 3% on Monday, which is in stark contrast to the rand’s recent performance.
Following President Jacob Zuma firing finance minister Pravin Gordhan and S&P Global downgrading South Africa’s sovereign credit rating to junk status, the rand has plummeted against major currencies.
Many South Africans would have seen the rand’s dive coming, and bought hard currency as an investment option – including US dollars.
In the space of a week, the rand’s value against the dollar went from R12.33 to R13.92.
While currency weakening is not great news for many locals, those who have put money into US dollars are somewhat better protected.
Bitcoin may not be the first investment option on local investors’ minds, but those who invested in the currency in recent years have many reasons to smile.
With the increased acceptance of bitcoin as a payment method across the world, its value has shot up in the past 24 months – as shown in the XE graph below.
If you had purchased bitcoin on 6 April 2015 – selling for a price of R2,972 – you would have increased your investment by 533% if you sold this week.
Bitcoin was trading at R15,855 on 4 April 2017.
|Bitcoin Price in SA Rand|
|6 April 2013||R1,473|
|7 April 2014||R4,734|
|6 April 2015||R2,972|
|6 April 2016||R6,360|
|4 April 2017||R15,855|