RCCDO January25 Bulletin

More documents

Recommendations

Info

By: SUE MARQUETTE POREMBA Y ou've probably heard a lot about Bitcoin lately. The digital currency's price rose astronomically in 2017, going from less than $1,000 in March to a peak of more than $19,000 in mid-December. Other so-called "cryptocurrencies" based on Bitcoin have had similarly shaped trajectories. What is Bitcoin? Bitcoin is a decentralized, digital-only currency. It has no central monetary authority. Instead, a peer-to-peer computer network keeps track of Bitcoin transactions and creates additional bitcoins through a process called "mining." Bitcoin users and their transactions are pseudonymous; there are no international exchange rates to figure out, and there's no need for middlemen to collect fees. Bitcoin was created in 2009, in the wake of the near-collapse of the global financial establishment and soon after an individual or group using the name "Satoshi Nakamoto" posted a paper online discussing the idea of a decentralized digital currency free from interference by governments and financial institutions. Nakamoto created the online bookkeeping system to record and track Bitcoin transactions and mined the first bitcoins. The software to create, track, hold and exchange bitcoins is open-source, so it can be used for free. What is the Bitcoin exchange rate? When Bitcoin was first released in 2009, one bitcoin wasn't worth much. A single U.S. dollar could buy more than 1,300 bitcoins. As Bitcoin became more popular internationally, speculation caused the value of a single bitcoin to soar to $260 in early April 2013. Several cyberattacks caused the value to plummet to about $50 later that month in a wave of panic selling. But in November 2013, the rate skyrocketed to about $1,200 due to Chinese speculation. At that point, the Chinese central bank took steps to prevent domestic trading in Bitcoin. For most of 2015, Bitcoin traded be- 12
tween $200 and $400, but in mid-2016, the exchange rate began to move again, increasing rapidly over the following 18 months to peak at about $19,000 in mid -December 2017. As of this writing, in January 2018, one bitcoin is worth about $10,000, quite a change from a few years ago and following a volatile ride in the previous few months. Its fluctuations are due, in part, to its capped amount of 21 million individual bitcoins and to its perceived value on the market. How do you buy bitcoins? Anyone can buy bitcoins. You'll first need to set up a Bitcoin wallet, either on a computer you control or with an online Bitcoin service. Some of the most popular services are Coinbase (perhaps the best wallet for beginners), Mycelium and Electrum. You can also find Bitcoin wallet apps in the iTunes App Store or Google Play. Most of these services will walk you through the process of setting up your wallet. Then you'll work through a broker to buy Bitcoin. Coinbase, again, is a good starting point for beginners, but other brokers include CEX, GDAX and Poloniex. You then use a credit card, debit card or bank transfer to make the purchase. What is Bitcoin mining? Bitcoins can be purchased using real money, but they can also be generated or "mined." Users generate bitcoins by having their computers solve difficult mathematical algorithms that help verify the creation of new bitcoins in the blockchain — the encrypted ledger that records and registers all Bitcoin activity — and the transfer of bitcoins between users. The algorithms become progressively more difficult over time. The total number of bitcoins that can ever be mined is 21 million. The cap prevents anyone from flooding the market and devaluing the bitcoins already in circulation. According to Blockchain.info, which provides real-time updates on bitcoins, at the beginning of 2018, there were just shy of 17 billion bitcoins in existence, or about 80 percent of the total number possible. The projected date by which all 21 million bitcoins will have been mined is 2040. What can you buy with Bitcoin? Because of the built-in pseudonymity, bitcoins are often used for illicit activity. However, many legitimate businesses, ranging from hotels to electronic stores, accept bitcoins. Here is a partial list of companies that accept Bitcoin as payment as of January 2018: Dish Network Expedia Golden Gate Hotel & Casino (Las Vegas) Microsoft Newegg OkCupid Overstock Reeds Jewelers Reddit Roadway Moving Company Subway Zynga There is also speculation that Amazon may soon accept Bitcoin, but that's only a rumor for now. About the Author: SUE MARQUETTE POREMBA Sue Marquette Poremba is a security and technology writer based in Central Pennsylvania. 13
Page 1 and 2: Vol. 1 No. 23 JANUARY RI THEME: VOC
Page 3 and 4: PROGRAM CALL TO ORDER INVOCATION PA
Page 5 and 6: President Tonyboy Fernandez F ellow
Page 7 and 8: PHOTO 7
Page 9 and 10: Progress on polio Rassin noted that
Page 11: 5 ways to inspire through vocationa
Page 15 and 16: How robot taxis will change mobilit
Page 17 and 18: HONORARY MEMBERSHIP “H onorary”
Page 19 and 20: 19

RCCDO January25 Bulletin

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?