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SatoshiDice Sold For 126,315 BTC

Chris in Bitcoin Gambling published on 29, July 2013

SatoshiDice“Sold for 126,315 BTC!” – This phrase has created a sudden bang in the domain of bitcoin betting as the news of the acquisition of SatoshiDice strikes like a lightning recently. Being known as a site offering a unique dice game which has been empowered by bitcoins, SatoshiDice has gained popularity among bitcoin players all over the world. And currently, it has again captured the limelight as according to CoinDesk, aside from being the first bitcoin casino purchased, it is also one of the greatest acquisitions in the bitcoin world as it has been sold for 126,315 BTC or around $ 11.5 million to unidentified purchaser.

Being launched in April 2012, SatoshiDice is known to be the “most popular bitcoin betting game in the universe.” Moreover, since January 2013, this bitcoin betting site’s profit was above $50,000 per month, as reported by Techweek Europe.

SatosiDice offers a unique dice game wherein one have to pick a lucky number by sending amounts of bitcoins in the wallet address the site have provided. Then, the “Ghost of Satoshi” will roll the dice and if the player’s number is lower than the result that would mean a sure win. Because of its convenient yet exciting feature, the game is proven to be addictive.

Furthermore, there had been more than 5.3 million bets placed in SatoshiDice and has already paid out more than 3.9 million. This bitcoin betting site claims to have an almost instant payout as winnings are sent to the winner within 30 seconds, while on each bet, they charge a small transaction fee. On the other hand, a bitcoin securities exchange that is based in Romania, MPEX, states that the price of the acquisition represents a 175% valuation on SatoshiDice’s worth.

Due to this unexpected event, there are some who were not happy with this move. It gathered several criticisms in the forum Bitcoin Talk. A member, TraderTim’s comment is not complementary:

“Well, thank you Erik for showing once and for all you’re just a profit-chaser – you don’t care about bitcoin, well, only enough to get your money out of it.”

To address the concerns as well as discontents from the Bitcoin community, Erik Vorhees, the founder of SatoshiDice, made this post on Bitcoin Talk:

While I know some S.DICE owners intended to hold for a long time, and will thus be dismayed by the buyout, it is my sincere hope that this compensation level will be amenable. It is substantially higher than the contract mandates, and it is almost 3x higher than all private owners are being paid. It has not been easy to negotiate to this level, but I believe it is the right thing to do.

Despite the fact that it gained varied responses from the Bitcoin community, this first major acquisition of a business that is solely empowered by bitcoins reflects just how much amount of money revolving in this economy together with the fact of its great possible profits.

Moreover, due to the fact that bitcoins are anonymous, players in countries like the U.S. which prohibits online gambling has found ways to sidestep their local laws. However, just last May, SatoshiDice did not allow any player with US IP addresses from betting in their site after seeking legal guidance.

 

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