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Is cryptocurrency made from gold?

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Binance survey reveals how well Ghanaians understands cryptocurrency (and it does, very well)

When you think of cryptocurrency, do you think of rare metals like gold and silver? Or is your first thought of a digital currency that relies on cryptography? Well, in a recent survey undertaken by Binance in Ghana, it turns out that 50% of the respondents are very much aware of the fact that it is the latter – a digital currency that operates on decentralised blockchain networks.

But what else do people here think about cryptocurrency and the value it offers? Well, nobody in Ghana thinks it’s the same as paper money but 22% of respondents did think the top three most popular cryptocurrencies are Akwaaba Cedi, Wasawasa and JollofJumping. None of which are actual cryptocurrencies.

The top three are actually Bitcoin, Ethereum and Tether. Bitcoin was launched in 2009 and was originally worth less than a dollar and as of 2024, it is worth just over $51,000 US. In 2013, Ethereum arrived on the market and has achieved an all-time high of nearly $5,000. Then there’s Tether. This cryptocurrency was introduced in 2014, just a year after Ethereum, and has since reached a maximum value of just $1. While not exactly the same financial league as Bitcoin and Ethereum, it is still a growing cryptocurrency known for its stability.

The next question was about Bitcoin mining. Do Ghanaians think it is the process in which cryptocurrency transactions among users are verified and added to the public blockchain ledger? Or is it the computational process by which powerful computers (miners) solve complex mathematical puzzles to validate transactions on the Bitcoin network? The answer is…of course, the latter. It definitely isn’t miners going into digital mines with virtual pickaxes (which 37% of respondents believed) nor is it the latter. It is, in fact, the verification of cryptocurrency transactions.

Who knew? Most people did! They also knew that blockchain and Bitcoin are not the same. Yes, it’s easy to confuse the two because the media has talked about these two technologies at the same time and in the same context. However, where Bitcoin uses blockchain to operate – blockchain is the cryptocurrency’s digital foundation – blockchain is its own, smart, unique technology that delivers massive security and privacy benefits.

Now, the important question for those who were smart enough to catch a ride on the Bitcoin train early, is whether or not you have to pay tax on your Bitcoins. Are they a source of income that must be taxed, do no cryptocurrency taxes exist, or does it depend on the Ghanaian government? The answer is actually the last one – it depends on how each government envisions the function of the crypto market in their country’s economy. This is one question that most people didn’t get right, which is 38% however, that’s okay, not even the governments may be sure how to get an entirely new digital currency right this early on.

What this survey proves, other than that tax is a mystery nobody wants to solve, is that Ghanaians get crypto and most know exactly how it works and how it can benefit them. The Binance survey shows that African investment is as savvy as ever, especially when it comes to discovering the value of crypto and digital.

Did You Know: Did you know that 22% of poll respondents said the top three most popular cryptocurrencies were Akwaaba Cedi, Wasawasa, and JollofJumping? None of these are genuine cryptocurrencies.

FAQs

Q: How did Binance collect the data?

A: Binance conducted a successful quiz on the Pulse Ghana website from 19 to 24 January 2024. To gather more accurate results, the quiz was then shared in their Instagram stories to encourage greater interaction from the audience.

Q: How many people were surveyed?

A: An average of over 400 individuals answered the questions on the Pulse Ghana website and Instagram stories

Q: What were the demographics of the survey participants?

A: Most people that answered the questions were millennials and have basic insight on what is crypto and how does it work.

Q: How long did the survey run for?

A: The survey was run over a week.

Q: How do the results impact Binance?

A: The results provide Binance with a clear understanding of the level of cryptocurrency knowledge within the Ghanaian market. It is evident that some individuals are uncertain about the three main cryptocurrencies, creating an opportunity for education through the content we provide.

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