The Story of a degenerate Gambler, who wagered over 300 million USD playing online dice.

The average mid 20 year-old kid has never had more than 10.000$ to his name. But this is not about an average kid.

Today I'm gonna tell you about guy that won nearly 2.000.000$ playing online dice. How could he do this?

First off, this whole story plays in the world of bitcoins. A bitcoin is a digital currency that is independent from any state/government. It's decentralized. In 2009/2010 bitcoins were worth cents and less, but became widely known in the course of time. Today a bitcoin is worth between 130$ and 140$.
This guy, let's call him by his online nick: Nakowa, came to bitcoins early on and never sold them. So basically he turned an investment of a couple hundred dollars into a couple of millions. But how can a person be responsible with such amounts of money, if he did never work for this money at all? How could he be responsible? I think he can't. That's also why this story is interesting. The "luck" that he made the right investment in the right time, doesn't end here.

One day Nakowa decided to try his luck and deposited 1000BTC (130.000$) on a site called just-dice. This site alows you to set you own payout and win%. So you can basically choose how much to risk , win and the frequency of it. The house edge is 1% and the bankroll of the site is composed of investor deposits (everyone can invest). When he first came to the site, there were 50.000BTC invested (6,700,000$) with a maximum payoff at 1% (500BTC). So this guy tested his luck and quickly won about 9000 Bitcoins (1.2 Million$). The investors at the site quickly cried and said that he must be cheating and that the maximum payoff was to high at 1%.

While Nakowa continued his quest to kill the bank, some investors convinced the site owner to change the maximum payoff to 0,25%. When this changed to the lower amount, the guy had already won 16000 BTC (~2Million USD). He basically turned his 130000$ into 2,2mil$.

Now a Week later, the guy has still not stopped betting and lost 700000$ back.

While playing he wagered about 2,500.000 BTC. Thats about 337.500.000USD that he bet!!!!! Thats so sick, that is more than a small stock exchange. Thats also the reason this betting site, is now the biggest BTC betting site there is (amount wagered).

That is a screenshot of his bets. His style was to bet at 2x Payout at 49,5% frequency. He altered his betsize in a random pattern (half/quater/eight). His maxbet on this screenshot is 172BTC thats about 20.000$!!!!!!!

This screenshot shows the amount invested, the %profit, the number of total bets, the amount wagered and the absolute site profit. All numbers are BTC.

 The last graph shows his profit chart and the colors represent the standarddeviation and the likelyhood in %. (green sd from 1 to -1) (yellow sd from -1 to -2) (red sd -2 to -3)

I'll keep you posted, and i hope he loses all back, because I am and was invested and lost a small sum to this investment atm!!!

Regards

http://bitcoin.org/en/
http://bitcoinity.org/markets/mtgox/USD
https://just-dice.com/