3 Comments

Summary:

Bitcoin may be a young phenomenon, but the SatoshiDice or S.DICE Bitcoin gambling site, set up by Panama-based Erik Voorhees, has already gone from being listed to getting sold and delisted — for a respectable amount.

Bitcoin
photo: Guardian/Guy Grandjean, James Ball

Erik Voorhees, the Panama-based Bitcoin entrepreneur, has sold one of his ventures for 126,315 bitcoins or, by my calculations at the time of writing, around $11.4 million. The business is a Bitcoin (BTC) gambling site called SatoshiDice or S.DICE.

The identity of the buyer has not been disclosed although I suspect BitCapital MD John Bridge, quoted on the Coindesk website, is on the money when he theorises it’s an established gaming company looking to branch out into Bitcoin. (If you need a primer on how Bitcoin works, incidentally, click here — you will note that the name “Satoshi” refers to the pseudonym of Bitcoin’s creator, and also the smallest current unit of the crypto-currency.)

S.DICE’s model is simple: players send bitcoins to S.DICE’s addresses, each of which carries a different percentage likelihood of doubling the player’s money (or returning a “you lose” micropayment). Those addresses rank as the most popular in the whole of Bitcoin-dom, so it’s no surprise that S.DICE is reportedly the leader in this field, with rivals including Just-Dice.

As U.S. laws forbid businesses from taking money for online gambling, many see Bitcoin as a possible way around such regulations — although it should be noted that SatoshiDice blocked U.S. IP addresses back in May, based on legal advice. The site itself is hosted in the Netherlands, Iceland and Ireland.

Voorhees’s dice business floated last year on the Romanian Bitcoin securities exchange MPEx, and the entrepreneur said on a forum that investors would get their money back, and then some:

“According to the MPEX Agreement, MPEX holders are entitled to receive 0.00126315 BTC per share, alongside other private owners. However, for the good of the MPEX holders and for the sake of the general Bitcoin community, which the site always has intended to support and nurture, SatoshiDice has arranged to pay MPEX holders an additional .00223685 BTC per share bringing the total to 0.0035 BTC per share.”

Conceding that some investors who had “intended to hold for a long time” may be displeased, Voorhees suggested they were getting a “277% premium over the sale price and a roughly 175% premium over the current market price of S.DICE shares on MPEX” (although mathematics suggest those are actually only 177 percent and 75 percent premiums respectively).

The reactions on the forum ranged from the congratulatory to the deeply suspicious, with the latter variety highlighting the buyer’s anonymity and crying “scam” – though without any overwhelming evidence that I could discern.

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  1. Bitcoin is a very new “currency” that allows people to profit without ANY fees of transfer, any freezing of funds, doesn’t require banks and is currently feared by established financial institutions to the way of trying to ban it.. but the fun thing is.. it`s impossible to ban or prohibit because no one owns it!

    A group of clever developers are working on a tool that will allow people to make bitcoins every single day! The beauty of this is that you stay anonymous and in nowadays world flying under the radar is important! Recent scandals of governments spying on its citizens are making “transparency” a scary thing. Don`t let anyone meddle in your private affairs!

    Go get the full scoop here: http://ezhomefunds.com/btcsm

  2. Glenn Diecedue Sunday, July 21, 2013

    Many people including myself are just starting to hear about Bitcoins even though they have been around since 2008-2009. They are a very new “currency” and will allow you to profit without ANY fees of transfer, any freezing of funds, doesn’t require banks and is currently feared by established financial institutions to the way of trying to ban it. The funny thing is that is it`s impossible to ban or prohibit because no one owns it!

    There are a group of clever developers are working on a tool that will allow people to make bitcoins every single day! There is a nice short to the point video that explains the “Human Greed” factor and why this is an entirely new and unexplored market!

    This is unlike anything you have ever seen or heard off and it makes perfect sense that early birds knowing this info will make alot of money off the backs of people that come into a new moneymaking market too late. The beauty of this is that you stay anonymous and in nowadays world flying under the radar is important. The recent scandals of governments spying on its citizens are making “transparency” a scary thing so don`t let anyone meddle in your private affairs!

    There is a free presentation seat to be grabbed so you can be the first to learn more about this bitcoin robot that is due to be released very soon to a small circle of people that follow its development.

    Check it out now: http://ezhomefunds.com/btcsm

  3. When you talk about your bitcoins increasing in value, what does that mean? You’re comparing it against US Dollars. “I bought $1000 worth of bitcoins last month, and now they are worth $1500! Wow!”

    See you are not looking at bitcoins as having their own intrinsic value. That’s why bitcoin is not a currency. At best it is a transaction mechanism (which might actually make sense). At worst, it is a speculative game. And like all speculative bubbles, they run way past their intrinsic value, then crash spectacularly. Except, unlike tulips, bitcoins do not have any intrinsic value.

    I think I’ll keep my dollars, thank you.

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