35% of US Consumers to Buy Bitcoin

A new study suggests that many consumers remain cautious about the prospect of purchasing or using digital currency.
The report was written by the Massachusetts Division of Banks (MDB) in conjunction with the Conference of State Bank Supervisors (CSBS), who canvassed more than 1,000 consumers with an online survey that focused on digital currency.
The CSBS, which is a national organization of bank regulators, previously held a hearing on the topic of digital currency in May.
The survey data shows that while a slim majority of respondents (51%) have heard of digital currency, 65% stated that they are “unlikely” to ever buy or use a technology like bitcoin.
Eighteen percent of participants indicated that they were “likely” or “very likely” to use a digital currency, and only 3% of those who had heard of bitcoin said they had actually bought some.

Research phase

According to the CSBS, the Emerging Payments Task Force – the organization’s working group that focuses, in part, on bitcoin – will use the data as it continues to develop its policies for digital currency.
In a statement, the chairman of the task force and Massachusetts Commissioner of Banks David Cotney said that the study fits into the broader research phase currently taking place.
He explained:

“State regulators welcome innovations that lead to greater choice and lower costs, but we also want to understand any consumer and marketplace risks as we evaluate the overall benefits of virtual currencies.”

Concerns highlighted

Fears regarding security and regulation, as well as concerns regarding the lack of consumer protections afforded in the traditional financial system, were highlighted in the study.
Sixty-one percent said that the overall security of their bitcoins would factor significantly into whether or not they used or purchased some, while 43% of study participants stated that bitcoin’s tax status would be a major factor. Forty-eight percent reported that concerns of insurance might stop them from buying bitcoin.
The report highlighted answers from roughly 350 participants who gave additional comments on the topic of digital currency. Twenty-five percent suggested that, because of their concerns, they would never buy bitcoin. The overall safety of the process was questioned by 13% of respondents, while 14% suggested that they didn’t know how digital currency might be used.

Age and affluence a factor

The data also highlighted how knowledge and perception of digital currency breaks down by age demographics. Overall, younger respondents expressed far greater levels of enthusiasm for bitcoin than older participants.


Read more at:

http://www.coindesk.com/banking-survey-65-us-consumers-unlikely-buy-bitcoin/

Price of Bitcoin Falls to $500

The price of bitcoin on the CoinDesk USD Bitcoin Price Index (BPI) dropped below $500 today.
At 2.30pm UTC, the price had fallen nearly 9% to $496.27, its lowest level since 21st May, when concerns about restrictive regulation in China were widespread.
Notably, the decline below $500 was short lived, with the BPI quickly rebounding over the $500 mark to reach $512.26 at press time.

No clear cause

Though no one news event could clearly be linked to the price decline, speculation was rampant on Reddit and other bitcoin community mainstays as to what factors were contributing to the market decline.
In its most recent BitBeat report, the Wall Street Journal suggested that the recent US Consumer Financial Protection Bureau warning and Bitstamp’s announcement that it had changed banking partners were both potential factors.
However, WSJ acknowledged that uncertainty over US regulation may have also been a contributing cause.
Vytautas Karalevičius, Spectro Coin co-founder and CEO, told CoinDesk he believes all three events to be contributing factors, though he said Bitstamp might have been the most important of the three, adding:

“Bitstamp changing its bank provider from Unicredit to Raiffeisen might have two effects. Firstly, some deposits to old Unicredit account are bouncing back, so people who were willing to buy bitcoin these days do not support the demand for it. Also, it shows a potential problem [even the] most liquid exchanges face.”

Though the proposal was first introduced last month, a growing number of bitcoin’s business leaders have started moving to formally contest the proposed framework. Boston-based bitcoin startup Circle even declared yesterday it would not serve New York customers should the laws be enacted.
Speaking to CoinDesk, Shawn Sloves, CEO of global bitcoin exchange network Atlas ATS offered a different take. He suggested that overall saturating in the bitcoin exchange market remains a contributing factor. New York regulation, regardless of the form in which it passes, will be a boon for the industry, he added.

Read more at:
http://www.coindesk.com/price-bitcoin-falls-500-lowest-level-since-may/