In the early days of Bitcoin, the only way to acquire any was to mine them yourself or to hope someone would share some with you. June 2010 saw Gavin Andresen take up a coding project that involved literally giving away Bitcoin. While it may seem counterintuitive to just hand them out, the industry could never get off the ground if the stores of Bitcoin were exclusively for a small group who never parted with them. The best way to increase awareness, uptake, and use of the cryptocurrency was to ensure the greatest amount of people had access to them. So, how have cryptocurrency faucets benefitted the industry today?
A Drop in the Ocean
Andresen’s first faucet gave 5 BTC in exchange for completing a simple Captcha. Once equipped with Bitcoin – and the ability to return each day for more – people could then begin spending them, circulating the cryptocurrency. Crypto faucets were the precursors to cryptocurrency exchanges. In today’s valuation, 5 BTC would be worth $47,224.90. Andresen loaded 1,100 BTC of his own money to fund the site initially, and it ended up giving away 19,700 BTC – or $186,066,106 based on today’s value.
The success of Bitcoin early on was based on users helping the cryptocurrency succeed so that they could then benefit in the long run. Since Andresen’s faucet, many more developed. However, most faucets don’t give out as much BTC as Andresen’s – most give one Satoshi per day (one hundred millionth of a single bitcoin). One of the primary issues that Name Coin News has discovered is that new entrants find it difficult to get into the industry, and faucets can help with that.
Are Bitcoin Faucets Legit?
‘If it seems too good to be true, it usually is,’ claims the old adage, but does this have any bearing on the faucets. Well, they are fully legal and safe, even if they do seem to promise something for nothing. Indeed, they are not the only way to get something for free online – it is a marketing tactic that can be seen to grow. In fact, there are many other examples of sound sites and apps that offer you something for free.
Sweatcoin, the app that combines exercise with earning altcoins gives free coins just for walking about and activating the in-app pedometer. Cashback apps, such as Shopmium, Ibotta, Dosh, and Drop, offer discounts on making purchases and cashback for spending on things you normally would through the app. Then, for example, in the gambling industry, Vegas Slots Online offers a range of free games for people to play, sometimes with a welcome deal to provide even more of an incentive. Even the dating app Tinder offers free glimpses into their premium account occasionally, to reward your time spent on their platform.
Beware Fake Faucets
There is some potential for scams when it comes to faucets. Cases of fake faucets have been prevalent. The site seems to promise free BTC and other cryptocurrencies, but is really just a front so that you upload your BTC to their site. Many sites seem to offer 100% first deposit bonus, which lures you into depositing your cryptocurrency to the site.
The cryptocurrency community is fairly savvy, however, and there are forums, sub-Reddits, and talking points across social media that list the sites that have been suspicious or have enacted scam-like behavior. The camaraderie of the industry can still be seen today, as much as it could when Gavin Andresen decided to offer up his own BTC for his faucet.
Cryptocurrency faucets are a great way to allow people to get into the cryptospace. Granted, the value of the daily drips aren’t as much as they were back in 2010, but the idea behind them remains the same. The more people with a vested interest in making Bitcoin and other cryptocurrencies work, the quicker it will enter the mainstream as a viable payment option and currency in its own right.