Quote:
Originally Posted by noname6520
Hi Matty,
can I ask why you are doing this? seems like you have 5k to your name already, why not just grind that?
You should ask that to pretty much everyone selling shares in this forum. But, let me sum up.
Let's assume (probably incorrectly) that matty's ROI is the same regardless of if he's playing the games he would on a 5k roll as with a 20k roll, and let's say that ROI is 20% (his is a bit higher), and he plays the roll once getting absolutely average results.
5K * .2 = 1k profits
Now compare that to playing bigger games with a 20% with 3/4 of it marked up.
5k *.2 + 15k* .1 = 2.5k profits
Matty get's an extra 1.5k and his investors do too.
he also gets to reduce variance since the 10% markup he gets (1.5k in our example) whether he wins or loses.
This is how staking works regardless of your roll.