If you are new to the whole bitcoin phenomena, or have stumbled across the term ‘bitcoin faucets’ whilst using a bitcoin casino or other bitcoin gaming platform that uses cryptocurrency, you might be wondering exactly what it is, and how it works? For those with no prior knowledge the thought of bitcoin faucets might seem complicated, so we’ve put together a little guide to help you on your journey towards bitcoin mining enlightenment!
What are Bitcoin Faucets?
In 2010, Gavin Andresen came up with the idea of bitcoin faucets. In essence, a bitcoin faucet is a website or app that offers small amounts of bitcoins to visitors, making bitcoin mining much more fun than it already is! The rewards are delivered in the form of Satoshi (a single Satoshi is valued at a hundredth of a million BTC) and can range from 100 Satoshis to 10,000 and beyond in some cases.
What is Bitcoin Mining?
So Bitcoin faucets provide bitcoin miners with an easier life? But, what exactly is bitcoin mining? It works in much the same way as gold mining does, in that there is only a limited amount of bitcoin available, and it becomes a more difficult resource to find and secure the longer bitcoin mining takes place. A bitcoin miner requires a computer and a special program to solve a block of transaction detail using cryptographic hash functions, taking place every ten minutes or so. As users generate blocks on the network to create new bitcoins, the Blockchain becomes greater and stronger.
Who are Bitcoin Miners?
At first a bitcoin miner would just be someone who had a passion for cryptography and wanted to validate the Blockchain using his or her spare time and computer. The value of Bitcoin was low at first, so it would have just been for fun back then. As the value of Bitcoin has steadily risen over the years the potential for bitcoin mining as a business has risen with it.
When is Satoshi Paid Out to Visitors?
Whenever a player or visitor to a Bitcoin faucet completes a task, captcha, casino style game or other bitcoin games, Satoshi is paid out. This payment comes at fixed time intervals, and the exact amount will vary depending on the market value of Bitcoin at that time. The average payout is less than 1000 Satoshi, with some offering much higher pay-outs (as you can see above).
What was the Reason Behind the First Bitcoin Faucet?
Gavin Andresen operated the first Bitcoin faucet and the idea at the time was to provide each visitor with five Bitcoins for free in order for them to help spread the word about Bitcoin, as the world’s first cryptocurrency. This approach was tailored to the reward system we see today in the form of Satoshi payments, as Bitcoin became more popular and the value began to steadily rise.
What You Need to Know About Bitcoin Mining Fees
Many bitcoin faucets will accumulate the many small individual payments within their own archives as a way of reducing the bitcoin mining fees. That way, once they have acquired enough to make a large individual payment, it can be sent to the players/users through individual Bitcoin addresses. Due to all Bitcoin transactions being unalterable, there is a real need to be wary of Bitcoin hackers and faucets that may fall victim to this type of fraud.
Recommended Bitcoin Faucets
We recommend gamefaucet.com as a bitcoin faucet that you can trust and acquire payments from in the form of Satoshi. There are ever-changing bitcoin faucet lists out there, with the potential for bitcoin faucet instant pay-outs from a wide range of free bitcoin mining games and other sources.