What is a Bitcoin Faucet?

What is a Bitcoin Faucet?

A Bitcoin Faucet is a reward system, in the form of a website or app, that dispenses bitcoin for visitors to claim in exchange for completing a captcha or task as described by the website. The term faucet is used as a reference to a tap or valve for turning on the flow of free bitcoins.

Nothing is Free

In the early days of Bitcoin, faucets began as a learning mechanism to incentivize new users to download a bitcoin wallet to accept and experiment with some bitcoin. As a first point of contact with bitcoin, new users could paste a bitcoin public key and receive small amounts of bitcoin such as 1000 satoshis for free.

After their debut, it didn’t take long before hackers programmed bot scripts that would outsmart these websites by automatically creating hundreds or even thousands of public keys to receive small amounts of bitcoin and after a while all of these micro donations would add up to a pretty substantial amounts of bitcoin.

Bitcoin faucets have since evolved into a service for mining personal information for advertisers. The more primitive faucets require simple actions from the user like viewing a short video ad, becoming a member, join their mailing list or sometimes by clicking on an ad to a specific website. More advanced faucets will vet their users and only “give” away the bitcoin if you are a member of their target audience.

The Most Addicting Bitcoin Faucet

Bit Kong
Most bitcoin faucets are nothing more than spammy flash in the pan type sites that offer no long term value for the end user which is why most of them die off after a while.

Some faucets can see the big picture and have found ways to keep their users coming back such as BitKong, a popular bitcoin gambling site that allows you to place simple wagers as you climb a ladder to win up to 10 bitcoins. BitKong offers up to 2000 free satoshis every 10 minutes (up to 50 times per user) with the hope that you will deposit more bitcoin and keep playing. In fact they tote themselves as “The Most Addictive Bitcoin Game Ever” and judging by their numbers, they just might be the most successful bitcoin faucet ever.

What is a bitcoin term that you would like us to further define for you? Let us know with a comment below or a tweet @WhatIsBitcoin.

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