Bitcoin Gambling Investments 3/12

It has now been three months since we started our Bitcoin Gambling Investments experiment and we have now made a 16.9% return on a Bitcoin basis and a 37.43% return on a USD basis. In aggregate our initial 5 Bitcoin Investment is now worth 5.83987 Bitcoins, or on a USD basis our $3000 investment is now worth approximately $4123.

So although our total Bitcoin Investment dropped in value slightly from the previous month the rise in the value of Bitcoin has helped the investment grow significantly.

In the third month we did some further investigation into Satoshi Dice and MoneyPot and decided to discontinue our Bitcoin investments on their sites. We will go into further details on this decision later in this article (focusing on Satoshi Dice this time).

With the Bitcoins we took out from these sites we invested more Bitcoins into SafeDice and we also added Bitvest to our list of investments.

A summary of the investment returns on the current Bitcoin Gambling sites held is tabulated below:

Bitcoin Gambling Returns After 3 Months

If you have been following the posts from the start of this experiment you will know that MoneyPot and Satoshi Dice have been very disappointing. If you have missed the last posts they are below:

Why Pull Out Of Satoshi Dice?

Even though other sites have been up and down, Satoshi Dice has been flat or negative the entire time. The Bankroll is well over 3,500 Bitcoins however the amount wagered over the last 3 months is approximately 1500 Bitcoins. With a house edge of 1.9% you would expect 28.5 Bitcoins in Profit over the three months and half of that for investors at 14.25 Bitcoins.

14.25 Bitcoins in profit from a bankroll of 3,500 Bitcoins gives a theoretical return of approximately 0.4% or 1.6% over a year. Absolutely not worth the risk in our opinion. With no sign that the site will improve we decided to pull out of Satoshi Dice.

What Happened To Satoshi Dice?

Satoshi Dice was the first successful Bitcoin business the team at BGR had become aware of. When Erik Voorhees was promoting the site and when it was eventually sold for 126,315 Bitcoins in early 2013, we had to delve further.

We were so impressed by the site, its was provably fair (a game changer for online gambling), it had a low house edge and was the most popular Bitcoin site around.

Jump forward nearly 3 years from the sale of Satoshi Dice and they have been overtaken by their competitors on most of the competitive advantages they had just 3 years earlier. Satoshi Dice has now become the Myspace of business – overtaken by competition and left behind.

Such a small amount of Bitcoins get wagered with regards to the size of the bankroll at Satoshi Dice that the returns real or theoretic, make it one of the worst Bitcoin gambling sites to invest in currently.

Today Satoshi Dice has the worst house edge of all Dice sites. It has been down for countless days over the last month as constant DDOS attacks question the security of the site. It does not even offer investors and players 2FA which is the low tech requirement for security these days. To top it off the Customer service can be very slow and vague on the Bitcoin Talk Forums.

While our frustration is pretty obvious in Satoshi Dice in this post, the issues it is having are very easily fixed and we used to love Satoshi Dice, so we want to see a change! I’m sure most of the fixes to make it popular again could be done in a day and to make it one of the best Bitcoin dice sites around again, arguable within a month.

These would include making the house egde 1%, adding 2FA, add better customer service, and to get the big high rollers in, give investors the ability to leverage their investment (making the max win compare to other sites). Add some good old marketing and you have a solid Bitcoin gambling site again.

If anyone from Satoshi Dice is reading this article – think about it