- Block, led by Jack Dorsey, will revive the historic Bitcoin ‘faucet’ distribution model starting Monday.
- The concept was pioneered in 2010 by early developer Gavin Andresen to give users free Bitcoin to try the network.
- Dorsey has consistently advocated for Bitcoin’s use as peer-to-peer money, not just a store of value.
- Andresen’s original faucet gave away nearly 20,000 BTC, now valued at over $2 billion.
- This initiative aligns with Block‘s existing Bitcoin services, like Cash App and automatic Bitcoin payments for Square sellers.
Jack Dorsey’s financial technology company, Block, announced it will launch a Bitcoin faucet service on Monday, reviving a key distribution model from the cryptocurrency’s infancy. The company confirmed the launch with a countdown page, and Dorsey personally reshared the announcement.
This faucet model was first created in 2010 by early Bitcoin developer Gavin Andresen. He aimed to help new users experiment with wallets and transactions for free, stating, “I want the Bitcoin project to succeed, and I think it is more likely to be a success if people can get a handful of coins to try it out.”
Consequently, that early faucet distributed roughly 19,700 Bitcoin before shutting down in 2012. According to reports, that sum is worth over $2 billion at current prices. The giveaway made early participants substantial gains, with 5 Bitcoin now valued around $334,890.
Meanwhile, Dorsey’s move fits his long-standing public stance on Bitcoin’s purpose. He has argued that Bitcoin should function as money, a peer-to-peer payment system. This initiative complements Block‘s existing Bitcoin services, including buying and custody via Cash App.
Furthermore, Block‘s subsidiary Square recently began automatically enabling Bitcoin payments for eligible U.S. sellers. The news had a muted market impact, with Block‘s stock trading up 0.17% in after-hours activity following Friday’s close.
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