Bitcoin faucets are simply websites, networks, or programs that offer users a small amount of bitcoins each time they perform simple tasks or activities. Now these tasks would include
- Watch product videos
- display of advertisements
- solve captchas and puzzles
- even play games
Just simple and easy tasks. Bitcoin faucets are usually treated as just a reward system, but it’s more than that.
Before knowing what a Bitcoin faucet is, let’s start with the terminology first. A faucet can be described as water that leaks, drips, a gradually faucet that does not make a significant change in a short time; that is, if you put something under the tap for a while, the pot or container may not be full of it. But what could happen if you put the same pot under the tap for a day or a week, it would fill or even overflow with water. This is precisely how a bitcoin faucet works. The only difference here is that you get satoshi instead of water.
What is a satoshi? — Satoshi are perhaps the lowest value of a bitcoin, just as a dollar can be divided into one hundred cents because the latter is the smallest unit of the former; similar to this, a bitcoin consists of one million satoshis. Satoshis is named after the guy who said to create bitcoin.
According to the definition, whenever a user completes the given simple tasks, they would get satoshis as a reward. But what would someone do with the millionth part of bitcoin, right? Well, then consider the leaky faucet analogy that even one drop at a time could lead to a full pot in the long run. In the same way, these satoshis, which the user receives as a reward, can accumulate over time.
When did Bitcoin Faucet emerge?
The Bitcoin faucet was launched a year after real Bitcoin was launched. And what was the name of the first bitcoin faucet? Well, it was called the Bitcoin Faucet itself. The first bitcoin faucet is currently one of the highest paying faucets. When the first bitcoin faucet was launched, bitcoin itself was worthless and unknown; as a result, no one used it.
Bitcoin Faucet founder Gavin Andreesen was one of the few people who recognized the potential and value of bitcoin early on. As a software engineer, he was fascinated by the idea of a decentralized, self-contained, cryptocurrency, and he assumed that the cryptocurrency would go somewhere. While Gavin had no intention of creating the highest paying bitcoin faucet, he became one because there was no competition.
How does Bitcoin Faucet work?
Usually, bitcoin faucets are easy to use because they only allow you to perform several simple tasks such as entering the public key address of the bitcoin wallet, clicking some buttons, and you are ready to receive the rooms. More complex activities lead to higher rewards. Many faucets are easy and legal, but the rewards from these bitcoin faucets are so meager they could hardly make you rich or fulfilled.
What is the purpose of the Bitcoin Faucet?
Initially, bitcoin was available in abundance to its users as there were no opportunities available for crypto trading, investing or exchanging due to the lack of trading platforms. Early adopters of bitcoin, such as the founder of the first bitcoin faucet, Gavin Andresen, designed new ways for people to learn crypto.
The first bitcoin faucet ever created in 2010 paid 5 Bitcoins for a single click on images. At that time, bitcoin was worth a penny, of which 5 BTC would cost around $150,000 today. As crypto and bitcoin became popular, bitcoin faucets followed and rewards fell to the lowest possible.
Advantages and disadvantages of Bitcoin Faucet
Bitcoin faucets have several pros and cons that should be considered before they are accepted. The biggest advantage of bitcoin faucets is that they are free because there is no other way you could receive free crypto.
Other than that, these faucets can be an easy way to get started with bitcoin or such cryptocurrencies. You don’t need to make an actual investment. Participate in a faucet, earn crypto and start your crypto journey.
Usability or faucets are also simple and do not require much knowledge or special abilities. They don’t even need vital crypto trading information to use a faucet.
The disadvantages are also there with bitcoin faucets because with their popularity and wide acceptance, many bad actors have also entered the space and started performing malicious activities. The first drawback is that the reward amount is very small, which could be as little as one satoshi which could cost 1 cent for 33 satoshis.
Doing the same job for a longer period of time, which will only earn you pennies, might not be worth it for long. Instead of doing such work, you might like to consider skill-based creative stuff to invest your time.
Besides the issues mentioned above, the general risks of cryptocurrencies also apply to faucets. These disadvantages include scams, phishing attempts or such attempts to steal funds or the identity of users. Some of the faucets also lead to users being infected with malware. Before getting into the allure of free money in bitcoin faucets, users should consider the red flags.
Popular Bitcoin Faucets
Today, the popularity of bitcoin faucets has led to the emergence of many well-functioning faucets in the field. It includes FreeBitcoin, Faucetcrypto, Coiniply, Rollercoin and many more.