I found this article interesting for several reasons. First, I was not aware of the fact that so many companies were investing in cryptocurrencies (not blockchain) in Britain. I wonder what the reasoning behind this is. Do they view these purchases as investments? Do they plan on eventually integrating the coins into rewards programs or compensation for employees?
The second reason I find it so interesting is that the referred to investments are not exclusive to Bitcoin. This is really good news for altcoin investors, such as myself. These companies could be pushing demand, which should, theoretically, improve the value of these coins. However, as the survey shows, these companies tend to look to sell and make a profit in a nature the same as individual investors.
One thing to keep in mind is that the companies surveyed are IT firms, and much more likely to be aware of and interested in cryptocurrencies. Another thing to keep in mind is while there is diversification most of the investments are in four coins outside of Bitcoin; Ethereum, Ripple, Dash and Litecoin.
Below is the article and link.
Research Shows British Companies Are Diversifying Crypto Stockpiles, No Longer BTC-Focused
Technology services company Citrix has commissioned a One Poll study that shows that 50 percent of British business are stockpiling cryptocurrencies, but only 7 percent invest in Bitcoin (BTC) exclusively, according to Citrix’s official blog.
Who was surveyed?
The study surveyed 750 “IT decision makers” in British business that had 250 or more people on staff. These businesses surveyed reported an average of owning 24 BTC, which equals around $230,000 at press time.
What coins do they own?
Out of all of the businesses surveyed, 93 percent reported that they have diversified their crypto investments beyond Bitcoin. 53 percent of the business surveyed own Litecoin (LTC), while 43 percent own Ethereum (ETH), 33 percent own Ripple (XRP), and 29 percent own Dash.
After Bitcoin’s rise to $20,000 and subsequent fall to below $7000, Citrix reports that some of the business surveyed made a “satisfying profit” by selling their BTC when the price was up. As BTC has been experiencing a gradual uptick in price recently, the surveyed showed that 38 percent of business that owned BTC were thinking of selling, while 5 percent have no plans to sell BTC in the near future.
Why did they decide to buy cryptocurrencies?
Citrix reports that only 4 percent of the businesses surveyed have been buying Bitcoin as preparation for a ransomware attack. Wannacry, one of the most highly damaging ransomware attacks this year, targeted the United Kingdom’s National Health Service.
Of the businesses surveyed, 40 percent will use their crypto to pay providers vs. 32 percent which will use crypto to pay employees. 27 percent plan to use crypto alongside smart contract and Blockchaintechnology, 27 percent for fundraising and training, and 17 percent for research and development activities.
What are the security risks of stockpiling cryptocurrencies?
64 percent of surveyed businesses owning BTC believe that the rising price of BTC has influenced cybercriminals to attack their BTC holdings. 18 percent of surveyed businesses overall also fear that their crypto holdings put them at risk of insider theft.
Most businesses holding crypto take cybersecurity seriously, according to the survey, as only 5 percent reported taking zero precautions to protect their crypto holdings. Backup procedures are used by 52 percent of businesses surveyed, cold or offline storage by 36 percent, multiple wallets by 36 percent, using a dedicated or hardened computer by 35 percent, and requiring dual control so multiple people are needed to access the crypto assets by 22 percent.
What do these companies predict for the future?
Keeping in mind the recently volatile crypto markets, 35 percent think that crypto could crash, and 34 percent say that the volatility is preventing them from adding more crypto to their stockpile. 18 percent fear that when they will be unable to cash in their cryptocurrency for fiat when they will want to.
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