The day before yesterday, a group of people launched a memecoin called TRUMP OFFICIAL, and the internet went wild.
Donald Trump himself shared links to it on his social media, causing a frenzy. In just two days, its market capitalization skyrocketed to a staggering $13 billion, and it even got listed on Binance.
đ Huge profits were made by those who bought the coin earlyâyesterdayâwhile todayâs buyers are footing the bill.
Our world is filled to the brim with dreamers and gullible people who donât know the ultimate formula for life and financial success: the formula of expected value (EV).
When we consider investing in the stock market, we try to determine if we have a positive EVâwhether the odds are in our favorâand assess what advantages we might have over others. Rational decision-making is key, and over time, the market rewards those who approach it logically.
For irrational fools, however, the financial world seems like a magical placeâfull of dazzling opportunities, easy riches, and "surefire" bets.
The moment fools acquire some money, theyâre bombarded with offers to play "the game": "Bet 1 cent to win 100," or even, "Turn $1 into $100,000!"
Itâs not hard to figure out that the EV of "bet 1 cent to win 100" would actually be positive if your chance of winning were higher than 1%. But in the real world, everyone doesnât have equal odds. Casino organizers ensure that only they maintain positive EV, while the countless operating costs mean that the foolâs EV is always negative.
