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