A study of some of the largest companies in the United Kingdom shows that half of them are keeping cryptocurrencies for various reasons. The research carried out by the software development company Citrix and One Poll a survey company studied more than 750 companies that employ 250 staff or more.
The study showed that the companies are each holding an average of 24 bitcoins even though only a small fraction, 7% of them invested in Bitcoin alone, the rest have investment portfolio that comprises some of the most promising digital currencies such as Ethereum, Dash, Litecoin and Ripples. Litecoin is the most popular among these companies whose IT investment decision makers bought into the most with 54% of the companies investing in Litecoin, 43% invested in Ethereum, 33% invested in Ripples while 29% invested in Dash.
The research further revealed that at the peak of Bitcoin price last December, 57% of the companies sold off their bitcoins while 38% are presently planning to sell. Just 5% do not have intentions to sell possibly because they are holding long term.
When surveyed on the reason for holding cryptocurrencies, companies gave reasons such as future plans to pay workers with these digital currencies, paying for Research and Development and even using it for a future crowdsale payment. 40% intend to use cryptocurrency to make payment to suppliers. 32% want to use it for workers’ payment, 27% are interested in its utilization for blockchain applications and development of smart contracts, 21% want to use it as part of fundraising activities while 17% are using it for Research and Development.
The companies still have fears due to the uncertainties surrounding holding digital currencies. 64 percent think that value appreciation would make their cryptocurrency target to attacks by hackers, these have actually experienced attacks while 31% have not but are worried that it may come in future. 4% are actually preparing for a ransomware attack.
Some of the businesses are aware of the risks involved in stockpiling large volumes of cryptocurrency. 5% acknowledged that they had not put extra security measures in place, while others have put in precautionary efforts such as cold storage by 36 percent which ensures that the internet is never connected to the storing device. 36 percent have their digital currency in multiple wallets, 35% use hardened computers while 22% used multisig wallets that ensures that just one person doesn’t have custody of private keys.
Chris Meyers of Citrix echoed the thoughts of 18% who say they are aware that people are the weakest link in the security chain and fear that insider threat could result in loss of their coins. Other concerns expressed is price crash, which 35% say is their concern. Inability to convert to fiat in future was expressed by 18%.