Any plans for a LTC dice site?
LTC? Ew, no!
Again, how can 5% (5 BTC) possibly be equal to 2.06% (2.06 BTC) when we're talking about the same thing (profit) over the same time period (a week) when both are using the same variable (wagered amount)? How much is in the investment pool is irrelevant to any of this discussion.
Profit as a percentage of the total wagered is different that profit as a percentage of the bankroll. Both are interesting numbers. The first tells us how well we performed relative to the 1% house edge. The second tells us how much our contribution to the bankroll grew this week.
Suppose only 1 person bet all week, and they bet just a single satoshi, and that they lost their bet.
The profit for the week would be 100% of the amount wagered, but only very slightly over 0% of the bankroll.
We will have performed 100 times better than expected, but nobody will have made much of a profit at all.
They're two different numbers which gives you two different denominators when calculating the percents.
Exactly this.
Thanks for clarifying. Apparently I was somehow missing the link between the two (in that the first was x/wagered and x/invested). Looking through it a few times I finally caught on, in that 50% of 100 BTC would be a 50 BTC increase, but if there were 500 BTC invested it'd only be a 10% increase in holdings.
Sorry about that, everyone. For whatever reason this concept wasn't clicking well. I think the way I was interpreting it was:
*Bankroll has 100 BTC
*100 BTC is invested
*50% edge = 50 BTC = 50% profit
*50 BTC/100 BTC is 50% profit
It works in that scenario, but wouldn't if there were, say 100 BTC wagered but 500 invested. This is what lost me I think (as I generally try to minimize things for ease, and the scenario I used kept resulting in the same thing).