What is Bitcoin faucet? What is Bitcoin faucet?

What is Bitcoin faucet or Bitcoin faucet?

Bitcoin faucet is Bitcoin faucet, reward system, in the form of website, application. These Bitcoin hoses will distribute rewards in satoshi form, a Bitcoin currency, for visitors who have completed captcha or tasks requested by the website. There are also faucets that divide other cryptocurrencies.

Bitcoin faucet was developed by Gavin Andresen in 2010.

Bitcoin faucet operation

Rewards are divided at predetermined time intervals. When completing a task assigned by the system, you will receive a reward, be it in kind or an opportunity to play lucky spin. Bitcoin tubes often offer a bonus of how much bit of bitcoin is, but the amount is not fixed because it calculates the value of Bitcoin.

Bitcoin trigger image

The typical rate of payment on a transaction is usually smaller than 1,000 satoshi, sometimes with random alternation of a few larger rewards. To reduce the cost of digging Bitocin, Bitcoin tubes often store small payments in the ledger, then add up to pay large amounts to users (by sending to their Bitcoin address). [See more about blockchain to understand Bitcoin transfer]

Because Bitcoin transactions are irreversible and there are many taps, they have become targets for hackers who want to steal Bitcoin.

This is how hackers attack your Bitcoin wallet online

The purpose of Bitcoin tubes

Introduction to users about Bitcoin: Bitcoin tubes are a great way to introduce new users to Bitcoin or other digital currencies (collectively called altcoin). Most Bitcoin tubes provide information for new users as well as give them a few free coins so they can try it before they buy, try a two-transaction experience before putting their real money in it. Because this whole experience is so new and complex for everyone, especially those who do not believe in digital money, do not want to risk their hard earned new money. Bitcoin tubes are a beneficial way to advertise digital money and bring new users.

Search traffic: Bitcoin tubes are high traffic sites. It is not difficult to earn a huge amount of page views every day when these sites give users a free money. If the site has other content or services to promote Bitcoin users, especially new users, Bitcoin faucet is a great way to promote the brand.

Making money: Getting a stable money from Bitcoin faucet pages is much harder than making a popular Bitcoin faucet, but it can still be done. There are many Bitcoin faucet pages and making money from advertising is enough to cover the cost of the money spent, hosting costs are almost impossible. Adding additional content, creating articles, unique flavors is the only way to generate income for Bitcoin faucet sites.

Introduction system

There is one highlight with bitcoin tubes as a referral system, when old users introduce new users to join them, they will receive a percentage of their rewards from the user invited from Bitcoin taps. Unlike the illegal pyramid model, income does not go to the head of the introduction chain. The exact legal status of Bitcoin is unclear and may vary according to the scope of jurisdiction, regarding each country's Bitcoin law.

Revenue model of Bitcoin faucet

Cost for Bitcoin faucet

Setting up a Bitcoin hose involves integrating a processor, payment manager. The owner of the Bitcoin faucet loads a bit of Bitcoin into the payment manager's electronic wallet. Payments for visitors are paid according to the rate / type of activity.

Income of Bitcoin faucet

Bitcoin tubes have income mainly from advertising. They try to find cheap traffic by introducing referrals. The higher the traffic, the greater the amount of advertising revenue. The difference between the value of Bitcoin and the income from advertising is profit. Some ad networks pay money with Bitcoin. Margins for Bitcon taps are very small. Only large, established Bitcoin tubes earn profits through huge traffic to their websites.

See also: Are you curious what inside the vast Bitcoin Iceland digging plant looks like?