Bitcoin is a payment system introduced as open-source software in 2009 by developer Satoshi Nakamoto. The payments in the system are recorded in a public ledger using its own unit of account, which is also called bitcoin.
Payments work peer-to-peer without a central repository or single administrator, which has led the US Treasury to call bitcoin a decentralized virtual currency.
Although its status as a currency is disputed, media reports often refer to bitcoin as a concurrency or digital currency.
Bitcoins are created as a reward for payment processing work in which users offer their computing power to verify and record payments into the public ledger.
Called mining, individuals or companies engage in this activity in exchange for transaction fees and newly created bitcoins. Besides mining, bitcoins can be obtained in exchange for fiat money, products, and services.
Users can send and receive bitcoins electronically for an optional transaction fee using wallet software on a personal computer, mobile device, or a web application.
What is a Bitcoin Faucet ?
Bitcoin faucets are 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. Rewards are dispensed at various predetermined intervals of time.
Faucets usually give fractions of a bitcoin, but the amount will typically fluctuate according to the value of bitcoin.
Faucets are a great way to help introduce new people to bitcoin, or to your favorite altcoin.
Many faucets provide information to newbies as well as offering them some free coins so that they can try before they buy, experimenting with a test transaction or two before putting real money on the line.
Since this whole area is so new and a bit scary to some people, who perhaps don't quite trust it with their hard earned cash yet, this is a great way to promote digital currency and bring in new users.