The alternative currency known as Bitcoin has just won its first major gamble. This victory took place in an actual online gambling site called SatoshiDice, which was just sold for $11.5 million USD. This instantly validates the value of Bitcoin as a site run purely on Bitcoin money just translated into a more recognized and known value: the USD.
Bit by Bit—An Empire Grows
Of course, the value in USD is estimated because the transaction was made—of course—by Bitcoins. So, just how many Bitcoins make up $11.5 million? 126,315 Bitcoins to be exact. The buyer remains anonymous, but this is big news in both the monetary world and the online gambling community.
Bitcoins are the sole unit of transaction for SatoshiDice and its success and ultimate sale are a testament to just how many people put their faith in the value of Bitcoins. The site launched in April of 2012 and brags that it’s the most popular Bitcoin gambling site in the world. As of January 2013, the site’s monthly income was reported at being over $50,000 by Techweek Europe.
The Ghost of Satoshi
The site itself is a simple concept that is obviously very addictive and successful. It works by having the user send Bitcoins to the site. This allows them to pick a number and the computer—AKA The Ghost of Satoshi—randomly rolls a “lucky number.” For any user that bet and picked a number that is lower than the one showing on the die, they win.
Just how popular is this site? Through the time of this article’s writing, over 5.3 million bets have been placed. What keeps people coming back? Well, there have been 3.9 million wins paid out. The wins are all paid within thirty seconds and a tiny transaction fee is taken on each bet.
Does Bitcoin Have a Future in the Cards?
This sale of SatoshiDice signifies the arrival of Bitcoin in the gambling market. Of course, this was rather expected and could even have been predicted by the close attention the United States government has been paying to Bitcoin. They’ve launched investigations into Mt. Dox, the largest exchange for Bitcoin anywhere. Mt. Dox had to shut down temporarily, but one thing is for sure—if Bitcoin can manage to continue successes like SatoshiDice, no amount of government interference can question—or shut down—their legitimacy. The people have spoken.