KEY POINTS

  • More than half of the surveyed businesses (59%) have purchased digital currencies for their own use.
  • The survey proves that the interest in acquiring crypto assets is not limited to the younger population and those involved in the space, business owners are starting to welcome digital currencies
  • Cybercrime is the primary risk of cryptocurrencies that was highlighted by HSB

One of the common risks that have been protested about Bitcoin (BTC) is its volatility. One day a small unit of BTC can buy two cups of coffee in Starbucks, and the next day it could buy half a cup.

Jack Dorsey knows this, which is why he has a team of people working on improving the crypto. But even with other cryptos, like Bitcoin BSV that shot up to more than 100% on Wednesday -- which, in this case, is a favorable scenario for those who own it -- can also be volatile to serve as money.

Still, a survey conducted by Zogby Analytics found out that 36% of the 505 small and mid-sized businesses in the U.S. that have less than $5 million revenue and fewer than 100 employees accept cryptocurrencies as payment for goods and services. Also, more than half of those businesses (59%) have purchased digital currencies for their own use.

The survey that was commissioned by Hartford Steam Boiler (HSB), an inspection and insurance company that is part of German reinsurer Munich Re, proves that the interest for acquiring crypto assets in the U.S. doesn't revolve around the younger population and those involved in the space, but with business owners as well.

Zogby Analytics also divided the respondents by the duration of their operations. And the results show that almost half of the businesses with relatively new operations (5 years or less) are accepting cryptos. That's in contrast to those with slightly older establishments (20 years or more), as only 21% of them are open to digital currencies.

While volatility wasn't the risk that HSB noted, Timothy Zeilman, its vice president, did emphasize the risk of cybercrime. 

Zeilman said, "Cybercriminals follow the money and fraud can be a serious problem."

 

"A number of currency exchanges have been hacked or embezzled and millions of dollars were lost. Smaller businesses, especially those starting out, can't afford to be cheated."

What Zeilman said is true since bad actors have a particular liking for targeting cryptocurrencies. Plenty elaborate schemes that victimize those with crypto holdings have managed to swoop under the radar of internet security companies before getting detected. 

Microsoft last year exposed Stantinko botnet that targeted 80,000 computers with crypto assets, and Eset published a report about a Monero-stealing malware that hides in Youtube channels.

Cryptocurrencies In this photo illustration, litecoin, ripple and ethereum cryptocurrency 'altcoins' sit arranged for a photograph in London, April 25, 2018. Photo: Jack Taylor/Getty Images