Are all Free Bitcoin Faucet websites a Scam?
The popularity of bitcoin has reached billions. And in the online world, when any topic (like trump, markle, etc.) gets too popular, there are always wolves waiting to pounce on the bulk traffic that this new online commodity has to offer. Crypto currencies are the new money mind’s bait food.
No wonder, now there are more and more free bitcoin faucet websites on the internet. And of course, that also bumps up the number of bitcoin scam sites that simply waste people’s time and money, only to run away with all the earned faucet income of the gullible victim.
In order to understand free bitcoin faucet, you must understand the idea behind its business model first. But before that, let us classify the faucets first.
Free Bitcoin Mining Websites can be classified into two types:
-> Faucets
-> Cloud Miners
The first one called Faucets are most popular and are simply a facade for cloud mining. Actually, there are no miner hardware used by them. It is simply a timer software with different rules, that auto accumulates virtual coins/tokens to its subscribers. In return, the faucet owner receives traffic, which he can convert to ad revenue.
The second type are actual cloud mining websites, that allocate a small portion of their expensive mining hardware, to each subscriber. In most cases, such websites expect you to invest some fiat money to buy the share of computing power. But they can also run promotions for free mining, in order to attract more buyers/leads.
How do Free Bitcoin Mining Faucets Make Money?
Let us first understand why faucets are giving away free bitcoins… How do they make money? The answer is simple – because BITCOIN is massively popular. Any popular site has traffic, and with traffic, they can earn ad revenues. The only smart move here is to plan the faucet in such a way, to make more money from ad impressions, than giving away for free.
But that is not the only income source for these websites. Sometimes, clever use of premium cloud miner options, also helps them make money. For example, when you have gained enough free coins in your wallet, they will propose you to upgrade or purchase some affiliated products, with that accumulated money. Somehow, the faucet website will profit from your free money, one way or another.
How do Free Bitcoin Cloud Miners Make Money?
Cloud miners have actual mining hardware racked up in a data centre facility, with all the operational maintenance expenses incurred. In order to mitigate the risk of initial capital expenditure on the hardware equipment, cloud mining companies will sell the compute power in small chunks, on the retail market.
So, anyone can invest as few as $20 in a miner share, and whatever income is generated by the miner hardware, is accordingly distributed to all shareholders, minus the maintenance fees of facility. Sounds familiar? well that is how share markets work…
Since there are too many cloud miners competing in the world, naturally they must attract more subscribers to their own share pool. Hence, they will allocate some compute power as free for new signups. Just like Amazon would try to woo you with free gift cards, for checking their new products.
Compute power of miners are measured in GH/s or MH/s or KH/s, which is basically different denominations of hashes / second. The number of hashes (complex crypto algorithm) that can be computed by a miner in 1 second, determines how fast the miner is. The more compute power you invest in, the larger will be your profits / month.
Something to note, once the shares are all sold by a cloud miner, they will stop offering free mining slots, so it makes sense to join them early.
But there are more questions that arise, like how to make money through these faucet websites, how to analyse legit paying sites from scam ones, and is there a list of websites already tested?
For such questions, you should read the source article on top active free bitcoin mining websites.
Conclusion
Bitcoin has a reputation for being a highly volatile commodity, but the digital asset has every time and again, shown remarkable signs of stability. Like any new asset available for masses to speculate, it is obvious for some hype to build up from time to time. That does not mean it’s dangerous, but we need to be vigilant and analyse latest data trends, before making any decisions.
Whatever the reasons for sudden highs and lows of bitcoin, get yourself equipped with latest trends and speculative analysis of crypto currencies, on Bits n Coins.
