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by kqr
977 days ago
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The upshot is that as long as you only stake $1 at a time, you're unlikely to lose more than $50. On the other hand, /if/ you do, you'll have to play for 6000 more flips until you can be fairly certain that you're even again. What's worse is if, after having lost $50, you're down to your last $50, there's almost a 1/5 chance you'll blow all of it trying to recover if you wager $1 each time. If you grow wise and start Kelly betting you'll get back to your starting $100 on average in 5000 flips, though. If you can take out a loan of $500 first, you can Kelly bet your way to even much faster, in an expected 700 flips. Whether this is worth the interest on the loan depends on how quickly you can find challengers to bet with. |
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If they can print money, why not infinitely as you will always pay it back anyway, so you don't have to worry about introducing inflation. There will always be a point when you can just burn the money that you temporarily introduced.