Localbitcoins.com advertisements mistakenly removed!

Recently we have been getting lots of complaints from unresponsive advertisers. In response to this, we implemented the following:

- After 30 days from last login, warning email is sent- After 37 days from last login, advertisement is disabled.

This was clearly a mistake, since after that we got complaints from real sellers whose ads were real. The problem is that last login is pretty bad indicator - it is possible to conduct the trades without logging in to localbitcoins via the email system etc.

Anyway, we try to put in a better system. We are sorry for everyone whose ads were deleted mistakenly.

If your ad was mistakenly deleted, you have to create it again. Sorry for the incident.

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Finally, A Bitcoinica Replacement?

A new Bitcoin exchange / leveraged trading service is set to launch in the coming weeks. Going by the name of "Kraken," it will be the first site to offer leveraged trading since the beleaguered Bitcoinica went offline last year. It will also be a Mt.Gox-like Bitcoin exchange.

I had the opportunity to browse the site, and it certainly looks promising. Hopefully it will be as secure as it is visually appealing.

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Bitcoin Gambling Site Earns $230,000 in December; Raises Eyebrows

SatoshiDice just announced their revenue numbers for the month of December, and they were record-breaking (all numbers in Bitcoin):

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December Statement

Summary:

Earnings: 17,266.45
Hosting/Tech Expenses: 60
Loss Carryover from Nov: 0

Net Profit 17206.44888669

Volume over past 30 Days 527,708.52
Expected Profit over past 30 Days 10,026.46
Actual Profit over past 30 Days 16,632.74

Updated P&L 

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Almost as impressive as their earnings was the cost of their overhead, an astoundingly small 60 Bitcoins.

You can read more about SatoshiDice in a previous article, here.

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SatoshiDice - A Test Case for Bitcoin Gambling

Early on, in was apparent that the online gambling scene had the potential to benefit from Bitcoin. Obviously I was not alone in that thinking, as dozens of Bitcoin gambling sites seemingly sprung up overnight, most of them looking like they were coded by five year-olds or Nigerians, or Nigerian five year-olds.

The majority have gone the traditional route of offering tried and tested games like poker, blackjack, or slots, but some have utilized the unique properties of Bitcoin to truly change the way people gamble online.

Enter: SatoshiDice.

Let me draw an analogy to try to explain exactly what SatoshiDice has achieved. Imagine for a second that you have a bank account with Chase, or any other bank that offers online banking, and you are logged into your online account. On the side of the page you are given the option of making bets. For example, you can send up to $3000 to another account, and instantly receive $12000, with a 24.41% chance of winning. Or you can send $2000 to another account and instantly receive $3914, with a 50% chance of winning. There are many other betting options available to you with a very slight house edge, and profits appear immediately in your bank account and are available for spending.

You could probably see how this might be addictive to a gambler, and tempting to anyone who has the option. If you have a Bitcoin wallet, this is reality.


So, how well has the site done? Very well... EXTREMELY well.

In the month of December alone, SatoshiDice's profits amounted to an impressive 17,206 BTC or $230,000 USD, with total profits on the order of 40,000 BTC or over half a million dollars.

(Total SatoshiDice Profit: Chart courtesy of forum member dooglus)

Transactions to and from SatoshiDice notoriously represent a large percentage of all Bitcoin transactions. As an example, alone there have been 700,000 transactions to/from the 50% odds betting address.

SatoshiDice has essentially laid the path for a new type of online gambling, one where you do not have to give a site your personal information and where deposits and withdrawals are near instantaneous.

Betwithbtc.com lists a few of the reasons why Bitcoin gambling could be important:

• With Bitcoin, transaction fees are less than a penny, regardless of the amount transferred. 

• Bitcoin transactions are not reversible. This means that online casino operators do not have to be concerned with chargebacks, and can therefore allow users to clear bonuses much quicker than in traditional online casinos. 

• Gambling sites can pass on their savings to players, increase your odds of winning, and offer better bonuses. 

• Credit cards charge "cash advance" fees when you fund online casinos. Those fees do not exist with Bitcoin. 

• Bitcoin transactions are virtually anonymous, and are not associated with a geographic location. 

• Withdrawals to your account are now instantaneous. No more waiting, no more checks, no more fees. 

• Keep your personal information to yourself. No names or addresses required. Your Bitcoin address becomes your identity. 

• No risk of having your credit card stolen. 

• No risk of having your identity stolen. 

• Since complicated payment processor software is not required, and micro-payments are possible, Bitcoin opens up a micro-gambling world that has never been seen before.

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No doubt, with the profits shown by SatoshiDice, the stalwarts of the online gambling industry are surely taking notice, and it may not be long before the larger sites start accepting Bitcoin.

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Bitcoin in 2012: By the Numbers

Our humble digital currency continued to show resilience in 2012, growing in all respects and steadily building its user base. The expression "slow and steady" is a fitting descriptor; let's take a look at the stats:

The rate of downloads of the main client increased slightly toward the latter half of the year, with approximately 70,000 per month. 

The number of users of the popular "My Wallet" service provided by blockchain.info has grown nearly exponentially, especially over the last month. Blockchain.info arguably has the most user-friendly mobile app for Bitcoin, which has likely contributed to the success shown in this chart.

Another popular client, MultiBit, receives approximately 200 downloads per day (6000 per month), which is quite respectable.

Always a favourite statistic is the exchange rate. Over the past year Bitcoin's value when compared to the US Dollar, and most other currencies, increased steadily, though there was a large spike and subsequent dip in August.

Interestingly, the current market cap is actually at a peak for 2012, exceeding the spike in August. This can be attributed to the fact that tens of thousands of Bitcoins have been introduced into the economy since August, though now at the slower rate of 25 per block.

Bitcoindata.net has been tracking several other statistics, including the number of items listed at Bitmit (an auction site that operates in Bitcoin), the number of users at Ogrr (an MMORPG marketplace), and the number of views of the "What is Bitcoin" YouTube video. All three of these have shown steady growth over the past year.

Bitcointalk forum membership growth and subscribers to the Bitcoin sub-reddit are also increasing steadily (charts again courtesy of Bitcoindata.net):

In the online gambling scene, things appear to be looking up as well. Bitcoin's top poker site, SealswithClubs, is gaining new users on a daily basis, with attendance at the tables on the rise:

Even the Bitcoin discussion on the TwoPlusTwo forums, the most popular poker discussion forum on the 'net, has 3,000 posts and 165,000 views!

Other notable stats:

Bets made at SatoshiDice.com: 2,354,830
Merchants using Bit-Pay: 1000+ in 98 countries (as of Sept 2012)

All-in-all, a very impressive year for Bitcoin. Here's to an even stronger performance in 2013!

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Merry Christmas!

Happy Holidays to all the Bitcoiners out there, and may your 2013 be full of independent financial awesomeness!

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Got the Smarts? Put your Bitcoins on the Line at BitTrivia.com

So, there I was, sitting at BitTrivia.com thinking to myself, "more people need to know about this site!"

Opened just two days ago, BitTrivia is exactly what it sounds like, a site where you can put your Bitcoins on the line against others in a no-holds-barred trivia competition. Got the smarts but never had an opportunity to cash-in on your talent? Now you can!

BitTrivia's design is intuitive and enjoyable, giving competitors a satisfying multiplayer experience. I've attended a few trivia nights at the local bar, and I would say that BitTrivia's bank of questions is a little easier than what you would find in a real life trivia competition, with the occasional stumper mixed in with the usual trivia fare.

The site takes a 10% cut of the prize-money, which can be as much as you're willing to bet, multiplied by the number of players who match your bet. If you're not feeling overly brainy, you can bet as little as you wish, but your winnings will never be more than you're willing to risk. Deposits are instant and withdrawals are as well, as long as your deposit has a single confirmation against it.

Update: the site now lets you play on your own!  If you get a question right, you automatically win 0.001 BTC - a great way to earn Bitcoins if you don't already have some.

I suspect the Bitcoin-backed online gaming scene has a lot of room to grow; BitTrivia is definitely a good example of its potential.

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