Business case behind “Free Bitcoin”

As the popularity of Bitcoin and other cryptocurrencies continues to rise more and more new services appear, including various ones that offer you to earn Bitcoins by playing them for free. Initially this may sound like a good idea, to spends some time to play a simple game for example and earn some Bitcoins in return, but things are actually not that easy and of course, there is a catch. The developers of games and apps that seem to give out free Bitcoins to people playing them are not running a charity here, it is a business that runs on a very simple and proven model that works and in the end, they end up making a profit by “giving BTC for free”. How is that possible and what is the catch and can you actually make some Bitcoins for free? We are going to answer these questions using the free Bitcoin website freebitco.in as a real-world example to demonstrate how things work.

The general idea here is that we have a simple game where you need to only enter your Bitcoin wallet address to start collecting bitcoins by clicking on the roll button. The game is designed in a way that you need to wait a certain period of time for a fraction of coins to collect and then to claim them and you need to keep claiming them over and over again until you reach a threshold before you can actually withdraw them. By default, you have an earning rate of approximately 0.00000015 BTC per hour and you need to keep claiming the accumulated satoshi each time until they reach at least 0.00030000 BTC. The idea here is that you will not just continue playing this game until you reach the minimum amount to withdraw. The catch here is that you need to reach 0.0003 BTC collected before you can request the BTC you have collected in the game to be sent to you and that is actually not an easy task, so let’s do some math to see why:

You are earning: 0.00000015 BTC per hour
The minimum required amount collected before withdrawing: 0.00030000 BTC
Interval needed to claim to continue earning: 60 minutes
Number of times you need to collect accumulated coins to reach 0.00030000 BTC: ~2000 times
Time needed to reach 0.0003 BTC to get paid your earned coins: ~2000 hours ( ~83 days )
What you would actually have earned in EUR/USD in almost 83 days of non-stop play: ~$3.32 EUR or 3.94 USD

So after doing the math, you see there is no much point to spend almost 3 months of continuous 24/7 non-stop play earning free Bitcoins playing a game that will reward you with less than 4 USD for the time spent. In the end, this seems to be really a waste of time for nothing, and if you don’t calculate things you may start playing just to give up after a number of attempts after that in which case the game operator does not lose anything as you will not be able to withdraw any coins. If you don’t give up easily and are very persistent and continue and spend a 2-3 month just to get a single payout out of the game, you will realize that this time was literally wasted seeing what is the actual return.

maxp Author