Satoshi Dice - A Low Risk Investment Opportunity
Satoshi Dice is probably one of the most popular and well known Bitcoin casinos with the biggest house bankroll of over 3800 BTC. It is essentially a crowd-funded casino, where the bankroll is the money of their investors. Satoshi Dice offers an investment opportunity into their house profits where every investor will get credited instantly the profits or the losses that the house makes, proportional to their investment. We will explore this aspect in this article, the gambling side does not interest us.
Satoshi Dice was founded in 2012 by Erik Voorhees, a prominent person in the Bitcoin community, and since then it has been sold, rumor suggest that possibly multiple times, yet the service quality remained the same. It has gone under a lot of hassle, but then it became formally licensed, together with their impeccable trust reputation I believe it is a good place to invest some money.
This article is not an investment advice, It is an analysis of their investment program. Just for the record I have 7.5 BTC invested in it, so I am putting my money where my mouth is. In my opinion it is a very reputable, low risk and stable investment.
The Investment System
Let's start by telling my opinions about the good/bad sides of it, and putting together a risk profile:
Good Points:
- Impeccable Trust, Transparent, No scam complaints so far
- Haven't been hacked ever, to my knowledge
- Most BTC is kept in Cold Storage properly, and signed
- You can withdraw your money frictionlessly
- No KYC requirements, yet, you can invest anonymously with only an e-mail required
- Sustainable and reasonable profit
- Low risk as, the gambling bet size is fixed, so the house won't really go bankrupt
- Active Bitcointalk thread where the representatives engage with investors
- Satoshidice.com is operating under the gaming license 1668/JAZ
Bad Points:
- No 2FA method to my knowledge
- No withdraw protection, if a hacker gets hold of your password he can steal your money
- Sometimes slow support team
- Owners haven't come out publicly (probably anonymous)
- No insurance
Alright so now that we know this, we can approximate the risks that are involved. In my opinion, doesn't matter how you look at it, a business that operates since 2012 without hacks or scams, in the Bitcoin world, is an A+ in my book, therefore I've put 7.5 BTC in it which is some percent of my portfolio.
Let's see the potential returns. You can check the daily profits by going on their Statistics page, and looking at the Session Game Total Profit chart. There are other stats on this page that might be interesting, but I find this one the most important.
I have grabbed this data, and imported into a spreadsheet, and looked at the daily profits.
Where the Average Daily Profit = 4.8579878145 and the Median Daily Profit = 2.683937735, since the Median is more accurate, reflecting the middle of the probability distribution, and given that it's smaller, its always better to underestimate, than to overestimate profits.
So 50% of the house wins goes to investors which means that the Median Investor Profit = 1.3419688675.
Now at the time I write this the bankroll is 3838.670 BTC, which means that with my 7.5 BTC I hold about 0.1953% share in it. Which means that I am making on average 0.002621941 BTC profit daily. In 1 year I am making 0.957008489 which would be about 12% return.
Now we can't calculate ROI % like we would normally, since the profit is fixed, and no matter how much you invest you can't make more than 1.34 BTC daily. So the formula you can use to calculate your BTC profit is:
BTC PROFIT = ( INVESTMENT_SIZE / BANKROLL_SIZE ) * 1.3419688675
So in my opinion it's worth it, it's stable and the profit gets credited instantly, and it's withdrawable. It's pretty much the most trusted investment system in Bitcoin, and it works pretty much like a savings account.
Disclaimer: The information provided on this page might be incorrect. I am not responsible if you lose money using the information on this page! This is not an investment advice, just my opinion and analysis for educational purposes.
Image Source: https://www.satoshidice.com
Never heard of this, but since the house always wins, then its a good investment. People are the ones that lose, the house doesn't.
Thanks for letting us know. Peace.
@krnel .. if the business world has this kind of "business mentality" then the whole world is doomed.. it should be a "win - win" man ... you need people and their money - no people - you only have your money which would diminish later specially if you loose your credibility in doing business with
But then maybe you are right - las vegas is still full of lights
Ahh c'mon gambling is a form of entertainment just like listening to music. If I would have invested in a music company nobody would complain, but if I invest in a casino it is suddenly immoral?
Music companies also cash in big time, and people spend a lot on music, so what. There is nothing wrong with it. So what is wrong in investing in a casino?
@profitgenerator ah .. you interpreted it that way ... i cant blame u - this is what happens with written texts so sometimes I also see a comment that seem nasty but i just keep calm ;)
well the reply was for krnel and it's not about being immoral and you're right - gamblers are adults so they are not really forced into doing it
The Casinos here maybe operate differently where you are at my friend says its a win win
One day they gambled - they won so they left when they already won
the next time, they got a bit greedy so they extended and they were supposed to have already won 300% of the money they put into had they left earlier but they did not and the profit diminished to 50% ..not bad I think but I also want to point out that this is how it operates here - and i think even if they lost some bucks - they got so many freebies - food, drinks - I don't know whatever else - so it's a win win. I think if a gambler has discipline - they would go for a win win in this system but if the house always wins - if this would be the design .. this won't pass where I am
but I've never been to - i don't gamble - i do take risk but perhaps like almost everybody i prefer calculated risk
Indeed, there is nothing wrong with gambling in my opinion, adults should be free to do whatever they want with their money. And besides gambling is an entertainment, it was never designed for to make gamblers money.
I also prefer calculated risks.
Gambling does have issues. ALthough epople are free to choose and do, there are some people who have addiction to entertainment and other things, like gambling, drugs, etc., and this reduces their quality of life and condition of living by sucking their time and attention, and in some cases like gambling and drugs, much of their money.
Simply because people can do something in an form of "free will choice". Many people are in a low consciousness modality, and need help. Having a business that simply offers a "choice" to assess risk and possibly make money voluntarily, does not take into account the state of consciousness some people are in and how these forms of entertainment hinder their progression to "heal" their consciousness.
Drugs and entertainment are not simply things to be supported ignorantly or blindly. Many people's choices are being directed by attachments to "Feeling-good" pleasure traps, and also denial of their condition in reality where they seek to escape from some form of suffering. These things don't help them heal in most cases, it only serves as a means or drowning out their suffering momentarily and the problems are never resolved.
Take care. Peace.
@profit generator - who wrote about it being immoral?
Well I thought you meant by "win-win" that gambling is exploiting gamblers.
But I do not agree with that, since it's just an entertainment service like anything else. It's not like gamblers are forced to play. So there is nothing wrong with investing in gambling.
That depends, some people win sometimes, but not all people win all the times. Gambling is an entertainment, and I have invested in it.
A ROI of 12% is a bit low in my opinion
Do you watch the Dragon's Den? I don't think any of the dragon there would invest in it given the chance even though it's been running for 4+ years and is doing good for the last 2 years .. or maybe I'm wrong
I don't know but it's very risky to invest if ..
Well anything bigger than 12% APR is probably a ponzi scheme. The 2FA is not really a problem, I have never used it, and so far I haven't got hacked. Just keep the passwords offline and safe and it's no problem in my opinion.
I dont think so :D
In the context of 1 investment site. Sure you might make more on your own, but when giving your money to a 3rd party, then the too big profits are questionable and raise some doubts.
Yes I am joking. there are plenty of risky investments as P2P lending where you can get 10+% but its still risky.
I'm a noon, but when you say keep your password offline what do you mean by that ?
I mean that you don't keep your password in a password.txt file on your Desktop. That would be very risky and foolish.
It is best if passwords are kept offline, on a piece of paper, stored in your home safe box, or hidden somewhere. It is also important to have multiple copies hidden in case 1 of it gets lost.
I hear of them but I didn't know about the investment side. I will check it out.
oh, Proxy required :(
They don't accept US residents to my knowledge.