Capitalizing on the Gold Rush
Thus far, Bitcoin has a storied history of historic highs and historic lows. While recent developments in the Bitcoin space have proved that the crypto-currency has reached a tipping point between a perceived illegitimate laundering mechanism and legitimate asset with real-world purchasing power, we are still very much in the wild, wild west. To help illustrate this, look no further than Bitcoin faucets.
What is a Bitcoin faucet?
On the surface, a Bitcoin faucet seems fairly friendly – and it is (I guess). It’s usually fairly basic with a minimalist design ala’ Google Search, though instead of a search field it simply asks for your Bitcoin address. It’s surrounded in ads – ads that pay the faucet operator in their local currency. Ads are typically provided by a service such as Chitika, — a Google Adsense competitor with a more relaxed set of guidelines. Google is notorious for blacklisting domains from the Adsense service for vague and sometimes even undisclosed reasons, so it’s understandable why Adsense is never present.
These are safe. Put in your Bitcoin wallet address and confirm. Seconds later, a handful of Satoshi (the smallest portion of a Bitcoin that can be transferred) will be sent to a 3rd party wallet service. They typically ask you to return every 30 minutes to an hour for more Satoshi – this generates more ad revenue for the faucet operator.
A Bitcoin faucet is only profitable for the operator for two reasons; 1.) the incredible disparity between the smallest amount of a Bitcoin and the smallest amount of the operator’s local currency, and 2.) the amateur speculator’s desperate want to get any kind of stake possible in Bitcoin. A Bitcoin faucet offers something special to a select group of people. Those who have just opened a wallet and are looking for ‘what’s next’. A Bitcoin faucet happily gives these people 5 of ‘something’. For those newbies that don’t quite understand the value of a Satoshi, the prospect of getting 5 of anything can be quite compelling!
The reward for a Bitcoin faucet operator must be immense – at least, if it has enough visibility. Giving away an appreciating asset in exchange for a depreciating one seems a little silly, but if you can generate enough of one to reinvest in the other, this has ‘win’ written all over it. For the user however, great risk comes with great reward, so I cannot impress upon you enough the following statement The value proposition of a slot machine is better than a Bitcoin faucet. But what the heck, why not give one a try and decide for yourself?
Note: The faucet links above point at a website called Coinfire.cf. Coinfire.cf is one of many Bitcoin related sites that have fallen prey to a terrorist attack. Much like the roaring 1920s, where gangsters would roll into a shop and demand the shopkeeper pay a ‘protection fee’, terrorists from other nations are now demanding tribute in the form of Bitcoin. If the domain administrator/owner doesn’t pay the tribute, the site is attacked by a massive botnet. This is called a DDOS attack, or ‘Denial of Service’.
If your site is approached by a terrorists asking for tribute, take Mike’s advice.