Drip Drip Drip, The faucet has been leaking for 11 years.

in bitcoin •  7 years ago  (edited)


        Have you ever wondered how bitcoin got its first run up in price? Well there is a simple answer. From the start of crypto currency there where few means of spending the "currency". In order to create sense of order flow or transaction rate, faucets where implemented as a form of creating a method of demand at small steady rates causing the price  to rise, when in fact no money is really being exchanged or invested into crypto currencies at all. 


       Some time ago, faucets where a lucrative way of supporting bitcoin and the promotion of the coins price. It was a relatively simply way of generating traffic to your website, while rewarding your visitor. Like any good business model the risk to reward could be structured to the point at which you stand to risk very little by offsetting coin payments by the advertising revenue generated.


        Thus faucets were the first credit system for cryptocurrency, falsely inflating the value of the currency by artificial demand and/or unsecured loan. Demand increases prices. While demand with no investment creates a false increase in price.
 

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