When it comes to earning Bitcoins for the very first time in your life, there are several options to choose from. You can complete a micro-task for Bitcoin, rent out your signature on Bitcoin-related forums, play games on your mobile devices, or just use Bitcoin faucets. And today, I want to tell you all about Bitcoin faucets.
The Bitcoin Faucet: What and How?
Before we begin, there is one thing I want to make clear, no one is going to give away money without expecting something in return, even though most people will see a Bitcoin Faucet as someone giving out money without receiving something in return. That is never the case. Faucets owners always find a way to make money from people visiting their site.
As to how that money is made by the Bitcoin Faucet owners, that is something we will discuss in a bit. But let’s begin by explaining the concept of a Bitcoin Faucet first. These websites will let you”claim” – not earn – a small chunk of a Bitcoin every so often. Depending on which Bitcoin Faucet you use, this interval can range from five minutes to 24 hours.
But there is a twist. Most Bitcoin faucets will not pay out these small chunks of Bitcoin every time someone “claims” them. There are Bitcoin transaction fees to take into consideration, which also have to be paid by the faucet owner. If they were to pay out every small transaction every time, they would end up losing a lot of money just from the transaction fees alone.
In order to counter pay a ton of transaction fees on top of the money they are giving you, Bitcoin Faucet owners will set up a certain threshold you need to reach before receiving a payout. Once again, depending on which faucet you are using, this limit can be anywhere from 1,000 Satoshi to a few ten thousand Satoshi.
And if you want to reach that threshold, you are obligated to visit the Bitcoin faucet website every so often, depending on the interval in between “claims”. Not only will this increase the website traffic for the owner, but it will also allow them to make more money. However, you as a visitor won’t notice any of that, as the amount you can earn per “claim” is usually fixed.
The Bitcoin Faucet: Why?
As I said before, no one will give you money for free. The world just does not work that way. So why are there Bitcoin faucets to begin with if all they do is hand out small pieces of Bitcoin to their visitors? There is no way to make money from that, by paying people for a few seconds of their time, even if they have to visit the site multiple times a day, right?
This, dear reader, is where you are sorely mistaken. The main idea of running a Bitcoin Faucet is creating an easy-to-setup website which will bring in a lot of website traffic. As most faucets force you to come back on a regular basis, traffic statistics will only increase, which in turn is beneficial to the website owner.
You may not see it when you open up the average Bitcoin Faucet website, but all of these sites host advertisements. Most advertisers look at website traffic – and more importantly, returning visitors – to determine whether or not they will advertise on a specific website. Bitcoin faucets always do well in both categories, making them an easy choice for passive income.
Granted, running a Bitcoin Faucet will require some upfront funds to cover the first weeks or months of running. But once those traffic numbers start going up, there will be advertisers willing to pay top money – in Bitcoin – to gain more exposure for their company, service or product. These earnings are partially invested back in the faucet – additional funds, a better layout, etc. – and the cycle begins anew.
This is also the reason why certain Bitcoin Faucet websites will not let you claim a reward if your browser runs an ad blocker extension. They will kindly ask you to turn off ad blocking for their particular website as they need to show as many advertisements as possible in order to keep their advertisers happy.
So are Bitcoin Faucets free money? Absolutely not, even though it may seem that way from your perspective. But rest assured, this is a business model like any other.
A comprehensive list of Bitcoin Faucets can be found here.