Imagine a leaky faucet. Drip, drip, drip. Sounds horrible right? But what if those drops were replaced with small amounts of money? That’s not so bad, is it? Believe it or not, such faucets exist. Bitcoin faucets refer to websites and apps that give small amounts of bitcoin to visitors, often in exchange for providing an email address, downloading an app, or completing some other action.
In exchange, you’ll be provided with between 100 Satoshis (0.000001BTC) to 10,000 Satoshis and more (0.0001BTC). With bitcoin prices having surged, expect rewards to be on the lower end of the scale. Regardless, free bitcoin is free money. Of course, no one just gives away money. So why do businesses and people set up faucets? Let’s take a quick glance at the first bitcoin faucet.
The Early History of Bitcoin Faucets
Bitcoin faucets have been around for a long time. Back in 2010, Gavin Andresen, the chief scientist at the Bitcoin Foundation, set up the first bitcoin faucet. Visitors were given 5 free bitcoins. At today’s prices, those five bitcoins would be worth more than $50,000 dollars. However, back then bitcoins were going for about 8 cents a piece.
Andresen set up the faucet in order to drive interest in and thus demand for bitcoin. It was a clever idea. By giving people bitcoins, Andresen made them a part of the bitcoin community. Andresen also established his own personal authority as well as the authority of the Bitcoin Foundation. There’s no bitcoin CEO and no bitcoin Treasury Department. However, the Bitcoin Foundation and Andresen himself are the closest bitcoin gets.
These days, most people are setting up bitcoin and other alt-currency faucets to drum up interest. However, most faucets are drawing attention to products, services, or less well-known P2P currencies as plenty of people are interested in bitcoin as it is. Instead, faucets are set up by people with more specific, tangible, and often profitable aims.
Why Do People Set Up Bitcoin Faucets?
Let’s consider the business’s point of view. Let’s say you build a super awesome, easy-to-use, hyper secure bitcoin wallet. Problem is, there are a ton of wallets out there. Even if your wallet is fantastic, how do you attract people in such a crowded market? In this case, a bitcoin faucet could be very effective.
First, you build your wallet and get it listed on the appropriate app stores and websites. Then, you set up a bitcoin faucet, offering say 200 satoshis to new signups.
All the while, people who are getting started with bitcoin are looking for a reliable wallet. They find your wallet and then see that they will actually get money for signing up for your app! For newbies, this is an amazing deal because they can get started with bitcoin without even having to go through the hassles of buying bitcoin on an exchange or through another method.
Meanwhile, more experienced users might be looking for a better, more secure bitcoin wallet than the one they are currently using. These users probably won’t jump at a bitcoin faucet offer. However, many will slow down and consider your wallet more closely. If the wallet offers all the features that they want and is actually paying them to use it, then why not give it a try?
How Do Businesses Make Money Off of Bitcoin Faucet?
Let’s wrap this up by considering why businesses offer bitcoin wallets. No business is in the business of giving away free money for nothing. The businesses that setup bitcoin faucets aren’t doing so merely to be generous. A bitcoin faucet is used as a hook to reel in and qualify customers.
For customers, it’s still a win-win situation. If you are looking for a service, such as a bitcoin wallet or an insider newsletter, you’ll likely end up buying a service either way. So why not get that signing bonus for something you’re likely to purchase either way?
Yes, in the long run the business will likely produce a profit off of you. That’s how every business operates. When you buy groceries, shoes, computers, whatever, someone, somewhere is producing a profit from that sale. However, while businesses will produce a profit off of you as a consumer, you can still get a great deal.
Bitcoin faucets are a great way to get started with bitcoin. Other faucets have been set up for other alternative currencies as well. With an alt-currency faucet you won’t have to invest money to get started and often you’ll get your reward quickly. Best of all, with a good bitcoin faucet you can start your bitcoin trading career without having to immediately put your skin in the game.
Bitcoin faucets “drip” wealth, so you won’t be getting a huge sum. However, bitcoin prices may continue to rise. What seems like a small amount today could be a huge sum. Think back to Andresen’s initial wallet. He was giving away less than 50 cents worth of bitcoin at the time, but now those coins would be worth more than $50,000!
Looking for some great faucets to get started with? We’ve got ten of the best right here!