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    Author Topic: bustabit – The original crash game  (Read 63359 times)
    TheGreatPython
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    February 07, 2021, 05:17:31 PM
     #1761

    It is not possible for bankroll investors' EV to become negative. Assuming the commission rate never reaches 100%–and economics says it can't–both the bankroll's expected value and its expected growth will always be positive. And even in the case of a 100% commission rate the expected value and expected growth merely become neutral, not negative.

    Worrying about that really isn't necessary, though. People invest in the bankroll to earn a profit. If they don't expect the bankroll to earn a profit then they won't invest in or remain invested in it. That holds true even if the dilution fee might lead someone that only invested recently to hold on and tolerate low yields a little longer than others in the hopes of others divesting first.
    Even though that first part is true (why would anyone want invest into something they think they will not be making any profit) the second part is very much true and a bit of a problem. The part about where the new investors would have to wait a lot just to break even, I don't know how long it would take because it depends on the gamblers and how much they wager and how much they wager and we all know there are volatile periods, so it could be investing and profiting in 10 minutes or not profiting for 10+ days both are quite possible depending on the luck of the gamblers.

    But the fact that you invest and start with a negative is a bit of a problem and having it go higher and higher makes it even harder and harder to make a profit. I would have to say something dynamic like "the more you keep your money in" type of solution could be better if you ask me.
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