Assets, Bitcoin

What Is a Bitcoin Faucet?

A bitcoin faucet is a reward system, in the form of a website or app, that dispenses rewards in the form of a satoshi, which is a hundredth of a millionth BTC, for visitors to claim in exchange for completing a captcha or task as described by the website. There are also faucets that dispense alternative cryptocurrencies.

The first bitcoin faucet was created by Gavin Andresen in 2010. It initially gave out 5 bitcoins per person.

Andresen later became lead developer at the Bitcoin Foundation.

Bitcoin faucets are a type of reward system that dispenses free bitcoins or altcoins.

They are usually sponsored by advertisements but these ads only run to keep the faucet alive and cover operational costs. Users can claim satoshis every few minutes.

Once they reach a certain amount, they can withdraw them to their personal wallet.

Most bitcoin faucets payout directly to your wallet once you reach their minimum threshold. However, some faucets will make you go through a micro-task first before you can claim your reward.

A typical claim from a bitcoin faucet could look like this: “Complete an offer from our partner site and earn up to 2000 satoshis!” or “Solve this captcha and receive 100 satoshis!”.

What is a Satoshi?

A Satoshi is the smallest unit of Bitcoin. It represents one hundred millionth of a Bitcoin and is named after Satoshi Nakamoto, the creator of Bitcoin.

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