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What are Bitcoin faucets

Started by Sub5, Jun 01, 2019, 09:36 pm

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Sub5

Bitcoin faucets are a very popular theme within the various crypto communities around the world. They receive both a lot of praise and backlash. Some people absolutely love them, others think that they are nothing more than a scam. Well, in this guide we are going to try to not only find out which group is right, but also look for the best Bitcoin faucet available - assuming that it's legit, of course.

I'll tell you all about the topic: what is a Bitcoin faucet, what they're used for, why are they even a thing in the first place. We'll talk about their impact on Bitcoin (whether it be good or bad) and then finally see if we can find a legit and profitable Bitcoin faucet.

Introduction
If you've ever left a faucet not fully closed in your kitchen or bathroom, you probably noticed that it dripped water. If you would place a bowl under it, it would probably fill the bowl within a day.

This is exactly what a Bitcoin faucet does - only replace "water" with "Bitcoin".

A Bitcoin faucet is a website that offers you very small amounts of Bitcoin in exchange for you solving captchas, watching ads or doing some other super easy tasks. The name of the units of Bitcoin that these sites offer are called satoshis (in honor of the creator(s) of Bitcoin). A satoshi is considered to be the smallest imaginable amount of Bitcoin - one BTC is equal to 100 million satoshis.

The number of satoshis that a Bitcoin faucet could offer you for the tasks vary - some sites have great rates, while others... not so much. It's really a case-by-case scenario.

Source: Bitdegree

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Origin and Purpose
The first ever Bitcoin faucet was called exactly that - The Bitcoin Faucet - and was released for public use back in 2010 - one year after the inception of Bitcoin itself. It was created by a man named Gavin Andresen, who is currently known for being heavily involved in cryptocurrencies, especially Bitcoin.

The Bitcoin Faucet offered users a reward of 5 Bitcoins.

Just let that sink in for a bit.

Naturally, Bitcoin was in its very early stages of development and was worth around $0,01. In this type of scenario, a website offering users to earn $0,05 for watching an ad or doing some other simple task still seems generous. But if we converted that into Bitcoin's current price, that would mean that Gavin offered people almost $29,000 for solving captcha! Imagine that!

The original purpose of a Bitcoin faucet was to spread awareness and educate people about Bitcoin. As you enter the site, the faucet would first of all offer you a gamified method of learning about cryptocurrency transactions - you would get some game credits (coins) and could try different transaction methods within the site (or app). After you're comfortable and feel like you know what you're doing, the site lets you participate in various different activities which grant you a certain amount of satoshis. It's a great way to gamify the learning process, while simultaneously bringing in new users.

Source: Bitdegree

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Business Model of Bitcoins Faucet
Now that you know what is a Bitcoin faucet and how Bitcoin faucets function, I bet you're probably wondering - how does it make money?

Truth be told, it isn't easy to earn a profit with Bitcoin faucets. You could have the best Bitcoin faucet in the market and still be struggling to make ends meet.

Faucet owners usually deposit some sort of an amount of Bitcoin into their cryptocurrency wallet. This wallet is then connected to their own, personal faucet site. After people earn a specific amount of Bitcoin by completing tasks and playing minigames within the site or app, that amount of Bitcoin is paid out of the crypto wallet to the person in question.
To earn money and make a profit from a Bitcoin faucet site, you would have to come up with something unique and original to make your faucet stand out of the crowd. There are new Bitcoin faucets emerging every single day (both as websites and as apps), so the market is considered to be very competitive. Only the most original ideas are able to power through the crowd.

You shouldn't forget that, at the end of the day, you're giving out money (just in the form of Bitcoin). This makes it even harder to break even, let alone make a profit. Some options of what you could do with your faucet include, but are not limited to: host more advertisers, promote your products or services with unskippable ad rolls, offer paid competitions and prize wheels, crowdfund, etc.

Unique and noticeable content will not only help you make money or spread awareness but also climb into the ranks of best Bitcoin faucet sites in the web. You can read more on reliable Bitcoins faucet out there

Source: Bitdegree

Sub5