Many in the crypto community find the gimmicky bitcoin giveaways annoying and scammy, but not Square Crypto. Recently they took to Twitter to give their controversial opinions.
Jeff Weiss, a software developer had other views. He said that the act of giving away Bitcoin is a powerful way to convince people that Bitcoin is worthless. To this, the account run by GiveBitcoin replied:
GiveBitcoin’s mission is exactly this, to encourage giving bitcoins as a gift to friends and family. They even give users the feature of creating Hodlers by locking their Bitcoin gifts for a set time period or a minimum price. People can also request Bitcoins as gifts using the platform. The firm also takes care of the legal work around the transaction.
When you think of it, giving Bitcoin can be one of the best tools to increase the adaptability of cryptos. Not only does a new person get exposed to cryptos, they even learn how the transactions work. When people see how seamless the process, we can be sure most people can hop on the crypto bandwagon.
To give an estimate, there are about 7.1 million active bitcoin users. If only 5% of them gift bitcoins to someone new, there will be 355,000 new users. We can be sure that the vast majority of them would end up becoming active users.
However, Bitcoin gets a bad reputation for running scams and this is why their giveaways come under active scrutiny. But this trend is not limited to crypto markets. Startups have been giving away free stuff to attract new users for a long time now. Most promotional activities are done by giveaways, in one form or the other.
Just last month Tyler and Cameron Winklevoss promoted their new book using the same strategy.