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  • I hear the term Bitcoin faucet a lot.  What does it mean?

     

    Free Bitcoin Faucet

    Bitcoin as a form of payment for products and services has seen growth,and merchants have an incentive to accept the digital currency because fees are lower than the 2-3% typically imposed by credit card processors.

    The European Banking Authority has warned that bitcoin lacks consumer protections. Unlike credit cards, any fees are paid by the purchaser not the vendor. Bitcoins can be stolen and chargebacks are impossible. Commercial use of bitcoin is currently small compared to its use by speculators, which has fueled price volatility.

    Where do I get bitcoins?  

    A huge aircraft hangar in Boden, in northern Sweden, big enough to hold a dozen helicopters, is now packed with computers--45,000 of them, each with a whirring fan to stop it overheating.

    The machines work ceaselessly, trying to solve fiendishly difficult mathematical puzzles.

    The solutions are, in themselves, unimportant. Yet by solving the puzzles, the computers earn their owners a reward in bitcoin, a digital "crypto-currency".

    The machines in Boden are in competition with hundreds of thousands more worldwide. The first to solve a puzzle earns 25 bitcoins, currently worth $6,900. Since bitcoin's invention in 2008 by a mysterious figure calling himself Satoshi Nakamoto, people have increasingly traded it for real money, albeit at a wildly varying price

    ...read more here

    How to mine Bitcoin?

    You can't "mine a bitcoin". What you can mine is a block, which is currently rewarded with 25 bitcoins (plus the fees of included transactions) What most small miners do (and even some big ones) is pooled mining: you contribute your computing power to a pool, which does the actual mining and reward you with a fraction of the mined bitcoin. With this system, you will have earned 1 bitcoin when you have contributed about 1/25th of the computing power to mine a block (approximately; the details depend on the pool's rules and the transaction fees too). The problem is that the Bitcoin difficulty .. read more here

    When I get Bitcoin from faucets?

     

     

     

     


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