I didn't see this asked or discussed, so here's my question: Why?
Why does SD need to go public, why does Erik want to dilute his own ownership and give up some control over his business, and what will he use the money raised for?
He sells 10% of SD for $350K (if all the shares sell) I think that answers most of your questions  That's assuming he takes that money for himself. Typically when a company issues shares, the cash raised becomes part of the company equity, i.e. the cash is owned by the company to use to expand or pay down expenses. I guess Erik can just pay himself a huge one-time salary though. My question was mainly inspired by the thing I typically ask Ponzi schemers of: Why do you want other people's money instead of use your own and keep all the profits to yourself? SD is obviously not a scam, but the question of why does this company need so much money still intrigues me. If it's something like "I want a huge paycheck for all my hard work so I can keep doing what I'm doing," that's still a perfectly fine, legitimate, and understandable answer. This is a legitimate question and I'm happy to respond. As per the prospectus, 10% of the raised funds will be going to a high-profile print media campaign in European gambling/casino publications. The amount shown in the prospectus of the "nominal value" (10k btc) will be held and not spent, so that if there is some breech or insolvency it can pay back investors at that promised amount. The rest goes to me. The vast majority of it I'll be holding as BTC because as you know I love Bitcoin more than anything. Other than that, I'll be using some of the funds on two other startups I have in mind, but these are secret  Some money was spent on the new website, but those costs were already paid so this capital won't be going to that specifically. Basically, I'm trying to bring a fraction of my future earnings of SD into the present as a lump sum. |
|
|
|
did i read the fine print right, 100,000,000 shares at .0032 or 3,200,00 btc or more than 30 million usd?
that is insane...
Math fail. It's 320,000 btc, or about 3.2m USD. This puts it at 10x p/e based on current earnings and assuming zero growth. I agree sorry for the quick mistake, but still. The numbers are way out of line to anything in the industry other than that odd exchange itself. No you guys are not apple. Do not get my wrong, I hope you guys sell out, it would be nice to know people are willing to wait 15 years to break even. I just sadly do not think that is realistic right now. We will see. Wait 15 years to break even... what are you talking about? If SatoshiDICE didn't grow at all (which it will) and you were never able to sell the share (which you can), then it would take about 10 years to break even. Since the site will grow, and since you can sell your share whenever, the equation changes substantially. A conservative estimate with a doubling of site revenue within 2-3 years means you'd have made 100% within 1-2 years because the stock price would double to maintain the same 10x p/e valuation. The attractiveness of such an investment to professional investors should be apparent. That is a very optimistic view. I hope you are correct but I highly doubt it. Would you be willing to let me short your stock? Thanks. It is a very optimistic view that the site will double usage over 2-3 years? The site doubled usage just in the last month Even if SatoshiDICE doesn't grow relative to the bitcoin economy (possible, since it's already so large), the bitcoin economy will FAR more than double over the next 2-3 years. I'm curious what your basis for analysis is? |
|
|
|
did i read the fine print right, 100,000,000 shares at .0032 or 3,200,00 btc or more than 30 million usd?
that is insane...
Math fail. It's 320,000 btc, or about 3.2m USD. This puts it at 10x p/e based on current earnings and assuming zero growth. I agree sorry for the quick mistake, but still. The numbers are way out of line to anything in the industry other than that odd exchange itself. No you guys are not apple. Do not get my wrong, I hope you guys sell out, it would be nice to know people are willing to wait 15 years to break even. I just sadly do not think that is realistic right now. We will see. Wait 15 years to break even... what are you talking about? If SatoshiDICE didn't grow at all (which it will) and you were never able to sell the share (which you can), then it would take about 10 years to break even. Since the site will grow, and since you can sell your share whenever, the equation changes substantially. A conservative estimate with a doubling of site revenue within 2-3 years means you'd have made 100% within 1-2 years because the stock price would double to maintain the same 10x p/e valuation. The attractiveness of such an investment to professional investors should be apparent. |
|
|
|
These "shares" bear more similarities to a an annuity than they do to actual equity. On top of this, I see nothing resembling an audited financial statement. Proceed at your own, in my opinion extreme, risk.
a) They are not an annuity. Their value will fluctuate with market demand based on dividends paid out, which are 100% of SatoshiDICE net profits. b) Actually, the financial statements are better than "audited." All the information is mathematically verifiable using the blockchain, which is public. You don't have to trust any auditor, you can audit yourself any time of day to see exactly what SatoshiDICE is making (and some have done that in other threads on this forum). c) Not sure if it's fair to call it "extreme risk" when comparing to other Bitcoin investments out there... you know what I'm talking about. It's verifiably profitable, and everyone knows where the profits come from. It's priced at 10x P/E and anyone who knows investing will understand this is a very reasonable valuation for a company with large growth potential and which already pays dividends. SatoshiDICE is not a get-rich-in-three-weeks-from-your-investment, investment. It's a transparent, income producing asset, and happens to be the majority of all Bitcoin transactions on the planet |
|
|
|
Investing in SatoshiDICE actually peaked my interest. These returns are ridiculous though...
0.0033278 BTC for 1/100M of 10%? Are you insane?
Man some people need to check numbers more carefully. It is .0033278 for 1 of the 100m shares (though only 10m shares are being offered). It is not 1/100m of 10% of the shares.  |
|
|
|
did i read the fine print right, 100,000,000 shares at .0032 or 3,200,00 btc or more than 30 million usd?
that is insane...
Math fail. It's 320,000 btc, or about 3.2m USD. This puts it at 10x p/e based on current earnings and assuming zero growth. |
|
|
|
|
UPDATE July 18, 2013: SatoshiDICE was sold in full to a private party. S.DICE has been delisted and closed. S.DICE holders were paid .0035 BTC per share at close.
In liberty,
-Erik
|
|
|
|
I would have to whip out a calculator and load the card with just enough funds 60 mins prior to every transaction. Too much hassle.
I can tell you that loading the card will not require 6 confirmations. It will likely be zero confs. Have people yet realized that you do not need to wait for confirmations for transactions to occur? Seems like people are still stuck in that line of thinking, but it's been an outdated notion for a year Most Bitcoin services, long term, will require no confirmations. |
|
|
|
|
Pirate owes people in BTC, not USD, so why would he be selling BTC to pay them back?
If he's selling BTC, then he likely doesn't plan to pay them back... but we have no evidence that these sales are from him (though almost certainly they are caused by speculation surrounding what he's doing).
|
|
|
|
Damn, son. I like when people use bets to show their conviction to an opinion. That's how men settle things, in my opinion |
|
|
|
From the relevant section quoted below, James Turk (founder of GoldMoney) clearly doesn't yet grasp the nature of Bitcoin, equating it with fiat currencies "backed by nothing". Oddly enough, GoldMoney accepts fiat currencies backed by nothing.
LOL well said It's like the Mises Institute decrying government fiat at every opportunity, yet accepting it gratefully, and not yet accepting free market bitcoin currency. |
|
|
|
STOP and look at BTC as a basic computer user would and its overwhelming.
False. Basic computer user will use sites like CoinBase.com and for them Bitcoin is instantly as easy as Paypal. Log in, send money, receive money. Don't let the fact that Bitcoin enables an array of other, more complicated, uses deter you from realizing how darn easy it is to simply send and receive BTC from an ewallet. Don't let the complexities of the mechanics inside an combustion engine deter you from realizing the ease of using a car. |
|
|
|
Destructive people like Vadroiy, Micon, Mage, etc must be really proud about the level of distrust they have brought to this community.
A huge lender (pirate) publicly states that he will pay back everything within a few days, and everyone and his mother start panic selling.
Your point is invalid unless he actually pays back. |
|
|
|
but its a pain having recalculated all my asset values based on bitcoins being $15 or more only to find almost as soon as I had finished the calculation that the price is back to $10-to-$12 or so.
You know a computer can do that for you |
|
|
|
LOL yeah that trick used to work but no longer |
|
|
|
|
Show Posts
