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The D and Golden Gate To Accept Bitcoin

By Chuckmonster on Tuesday, 21st January 2014 10:41am
  » filed under Las Vegas  comments: 16

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The D Accepts Bitcoin Logo

After a few days of teasing, The D and Golden Gate announced today that it will begin accepting the virtual currency bitcoin for payment at both hotel front desks and American Coney, Joe Vicari's Andiamo Italian Steakhouse and the gift shop at The D.

So how does it work? Each bitcoin user has a cryptographic key that is unique to their holding of bitcoin, these are stored on a decentralized network of computers called mines. When you purchase something, you scan a QR code or enter in the key of the vendor using a mobile device and send them whatever amount of bitcoin is owed. That unit of bitcoin (Satoshis, named after the architect of bitcoin) is transferred and assigned to their key in the mine ledgers. No cash, no credit, no cards... just bitcoin on the barrelhead. Bitcoins are not yet accepted at gaming tables or slot machines.

1 bitcoin currently sells for $963USD on Japanese-based bitcoin exchange Mt. Gox.

This is an historic moment in the history of bitcoin and the evolution of Las Vegas.



Tagged: the d   golden gate   las vegas   bitcoin   



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Comments & Discussion:

I have my doubts and concerns over this. I don't expect Bitcoins to ever be legal tender in a Las Vegas casino as there are a lot of concerns about illicit and illegal activities involving Bitcoins and that folks are using Bitcoins as a way a launder money. Bitcoins are a fairly volatile and I see the trading in them to be much like the daytrading boom of the mid-to-late 90s before the tech bubble burst (Bitcoins are the new gold, as some investors are moving their profits made in the rise of gold prices in recent years to Bitcoins.). While more and more mainstream companies are embracing Bitcoins as a currency, I don't see it gaining widespread acceptance.

Ten months ago a bitcoin was worth $13, and today it's worth $963. So 1,000 bitcoins then = $13,000, but today, ten months later = $963,000. Hmmmm.

Well, congrats to everyone who bought in early. Just fourteen grand 10 months ago would've made you a millionaire today. Sweet.

I realize The D and the Gate are just responding to Tony Hsieh's army of dead-eyed code monkeys, but you'll forgive me for not wanting to chant something in Elvish and send a Facebook request for more Candy Crush lives in order to buy a fruit punch Powerade at the gift shop.

I see why the move is being made but how many people are actually going to do this instead of just flashing money the way our moms and dads did.

I've got no problem with Stevens accepting an alternative currency for these retail/dining outlets, considering that it's his company's risk. They could make out well if the digital currency continues to appreciate...but could get stung if the coin lands on the other side. That being said, the whole Bitcoin thing just seems like a multi-year pump-and-dump scenario. Just a gut feeling, nothing more.

You've gotta hand it to Derek, he knows how to get good coverage and he's making things happen.

Holy PR stunt, Batman! And, as such, it made national news today.

But as jerrydice says, it's Derek's company and his call to risk his neck. I share vespajet's and Drake's concerns about the currency, but it's not like Vegas hasn't seen its share of funny money in the past.

Aside from the steakhouse, how much money really is going to be made from non-gaming Bitcoin purchases? I'd wager (with real dollars) that it's not much.

Does anyone see the day when a player preloads his rewards card with Bitcoin (or fractions of Bitcoin) and slides it into a slot machine or computerized table game? I'd think state and federal regulators would take a long look at multiple non-American currencies flowing through a casino.

Agree it was great press, but could someone smarter than me please tell me how Derek turns virtual currency into actual money?

I wrote this on Facebook, I'll re-post it here:

Bitcoin's interest group is two people: Libertarians who think 'government-backed currency' is a bunch of hokum, and money launderers who want to move around illegal goods such as drugs and weapons. Then there's people who are simply tragically foolish (though they can also be in the first two groups.)

The majority of Bitcoin transactions are dollars-for-Bitcoins, the number of things you can buy without translating them to dollars is incredibly limited, and the few merchants who do take Bitcoins usually do so through a third-party exchange service who converts the Bitcoins into real dollars so the merchant never sees any Bitcoins. I'm guessing this is what Stevens is using.

Basically, I had a nice chuckle when I first heard of this story. But Stevens is a local guy with private control of his properties, and given that Nevada has such a vocal base of Ron Paul voters, I wasn't surprised to hear he was hit with buzz about it. I don't think any publicly-held resort companies would go for it unless similarly large companies did. They probably won't, as the technical underpinnings are already beginning to strain under the relatively few transactions that are taking place. The verification file (which grows with every Bitcoin minted) is already several gigabytes which means the currency can't scale well, and the third party money transfer services like these retailers are using have a tendency to just vanish and take your funny money with them, or simply are too high-profile to not get hacked by the currency's more digitally-inclined community like a internet bank heist.

By the way, Mt. Gox means "Magic: The Gathering Online eXchange", but the people who run the largest BitCoin transaction site didn't bother to take the name out of the nerdy card RPG out of the name of the site when they decided to depart that business, because they figured there was nothing wrong with being a Serious Financial Institution(tm) with that legacy in their name.

And that's incredibly amusing. They're probably as responsible as anyone else for trying to keep that bubble afloat past it's expiration date.

Well said, MinVegas.

Bitcoins remind me of Pogs (the first fad that I had no interest in and frankly had no clue what it was).

Does that mean will be seeing Bitcoins bearing the likeness of ALF? ;)

Steve Harvey! Vespa, Steve Harvey

I just watched Derek Stevens being interviewed about this on Bloomberg and he said that within the last years, they saw a rise in the number of customers asking if they took Bitcoin to the point that it was becoming a daily thing.

The D and the Golden Gate aren't directly taking Bitcoin; Bitcoin transactions are done through a processor (similar to how credit cards are processed) and the Bitcoins are converted to dollars and that's what the seller gets. So the hotels are insulated from the volatility of the Bitcoins since the merchant gets the amount in US dollars.

Heard Derek on CNBC heading home this evening...he's DEFINITELY getting some run out of this. Well played, just like the refunds his sportsbook gave out for that Replacement Ref Green Bay game.

Here's the link to Derek Stevens on Bloomberg:

http://www.bloomberg.com/video/las-vegas-hotels-now-accepting-bitcoin-SgsW3WeDTayfoHbpI8mndA.html

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