What the hell is happening with the sdice valuation? People are just dumping these shares with the end result being that I made since start of the year 300% on my bitcoins and at the same time barely 30% on sdice. To me, this does not make sense. Sdice has - proven- to raise the amount of btc earned and payed out, even while btc goes up dramatically in value. So logically sdice should go up as much as bitcoin goes up (ie the share price not dropping when btc goes up). Is it right to conclude that investors are behaving irrationally today? Or am I missing something?
Great company by the way Erik!
It's quite clear that people are
not going to bet $1,000 as frequently as $100. BTC/USD definitely does influence the price of S.DICE, but not 1:1.
1) People may be wanting to cash out their bitcoin earnings and therefore selling their BTC assets
2) Concern over blockchain bloat and possible anti-spamTX actions taken by bitcoind (this is just speculation BTW, it will not actually be a problem)
3) Concern over S.DICE's poor luck in March (less divs too)
4) Large investors needing to liquidate their S.DICE shares (this was what happened last time)
5) BTC/USD exchange rate to some effect
Holding S.DICE assets instead of cold storage bitcoins brings you more risk, and is the risk really worth the returns?
I would add to this (which may not be entirely independent of the above):
6) Many investors may still be looking at their S.Dice investment in usd terms and if they'd invested near the top of what they would in usd to start with now have a holding far above what they're cofortable with;
7) From the fact of the price never coming near what it was before a few weeks back when a whole new tranche of shares were sold cheap I'd guess there's still a significant number of shares in the hands of those who at the time bought more than they'd intended to long term with the intention of making a quick buck on the way back up who are now holding something that cost them more than they could currently sell it fo (me, me
) ;
8 ) Increase in btc/usd exchange rate meaning taking a hit on the S.Dice price doesn't matter so much given the usd value has gone up so much.
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Keep up the good work - I mean keep up the work so well that we'll have to call your zone something else!
Think about it, 2 days ago would you not all jump for joy if you had known the price will be $60? Now it's just business as usual.
