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Alright. I should probably elaborate more.
Assume there is a predefined setup for generating a stream of bets with bet amount of 1 BTC but variable multiplier and High/Low selection of rolls (and no bias in terms of house edge). Each bet will produce result (profit or loss) that will be added to the previous result (again profit or loss). Now, with each bet in progress, you’ll get a cumulative time-series values of so-called betting performance that will look like a curve starting at zero on both X and Y axes. There is no way to know what form the curve will eventually take after N-number of bets is executed, thus the outcome is unpredictable.
Now as regards to the odds. As I mentioned, we may introduce multitude of different combinations for placing bets. For the sake of simplicity, consider a binary option to illustrate how it works: You bet on the curve that ends (1) positive or (2) negative - for the curve to end positive, profits should prevail over losses. Since the process is random, there are basically 50/50 chance of either outcome. So BitDice will take on first player bet with 2.00x payout for either case. As further players arrive to the game they will realize that the odds are no longer 50/50 for them, as the first player, who’s already bet for (1) option, will skew the multiplier payouts.
In this particular example, placing a first bet on (1) option for the bettor that follows him will somewhat decrease multiplier for (1) and increase multiplier for (2), bringing incentive for other players to bet on less crowded option (2). As result, every incoming player will affect payout stakes after committing his bet, where in fact the outcome WILL hold a theoretical distribution of odds, in this case 50/50.
Assume there is a predefined setup for generating a stream of bets with bet amount of 1 BTC but variable multiplier and High/Low selection of rolls (and no bias in terms of house edge). Each bet will produce result (profit or loss) that will be added to the previous result (again profit or loss). Now, with each bet in progress, you’ll get a cumulative time-series values of so-called betting performance that will look like a curve starting at zero on both X and Y axes. There is no way to know what form the curve will eventually take after N-number of bets is executed, thus the outcome is unpredictable.
Now as regards to the odds. As I mentioned, we may introduce multitude of different combinations for placing bets. For the sake of simplicity, consider a binary option to illustrate how it works: You bet on the curve that ends (1) positive or (2) negative - for the curve to end positive, profits should prevail over losses. Since the process is random, there are basically 50/50 chance of either outcome. So BitDice will take on first player bet with 2.00x payout for either case. As further players arrive to the game they will realize that the odds are no longer 50/50 for them, as the first player, who’s already bet for (1) option, will skew the multiplier payouts.
In this particular example, placing a first bet on (1) option for the bettor that follows him will somewhat decrease multiplier for (1) and increase multiplier for (2), bringing incentive for other players to bet on less crowded option (2). As result, every incoming player will affect payout stakes after committing his bet, where in fact the outcome WILL hold a theoretical distribution of odds, in this case 50/50.
Okay. Can you clarify this?
I got everything except the variable odds part.
Suppose there is a 1BTC bet on profit after 1000 rolls, and there is 2BTC bet on loss after the same.
Will the odds be 50:50 or 1:2 ? that is will the chances depend upon the bet amounts on both sides, so that no one has an advantage or disadvantage?
If so, if a player bets against for 0.1BTC against 0.05 hoping for a win and a whale comes and places a bet of 10BTC, won't the player get a different set of odds than he intended?
Also, I assume the house will be taking a small fee? or will it be free?
Edit: Is the variable edge implemented in a similar way like house edge is implemented?
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