RCCDO January25 Bulletin

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.
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