Diminishing Returns in the Game of Blackjack

Video Transcript

Hi this is Daniel on behalf of Expert Village. In this clips we are going to be talking about the diminishing returns while gambling. More specifically playing 21. Now when you come to a 21 table you are going to come with a set amount of money. Let's say you have 100 dollars in your hand, well can't really lose more than 100 dollars if that is how you come to the table with. Can you? Well actually you can and you could lose a lot more. Here is the idea. If you come to a table with a 100 dollars and you place a bet. Let's say a 20 dollar bet. You put that on the table and you are dealt a 21. Well 21 pays three to one. The dealer is going to grab 30 dollars to pay your three to one. You are now going to have 50 dollars sitting in front of you. If you take that full 50 dollars you put it back in your kitty you now have a 130 dollars to bet with or 130 dollars to lose. But, the smart gambler is going to take all of his winnings, this 30 dollars and he is going to put it in his safety hole and he is just going to leave it there and he is going to say no matter what I won't touch this money while I play at this table because I never have more then a 100 to lose. So as a player plays and wins more and more money or loses more and more money, we know that he could never lose more than a 100 dollars. Even if he loses his 100 dollars, let's say he lost a 100 dollars but he made 75 he would always walk away from the table with money and that is the idea of diminishing returns. The smart gambler is going to take his winnings and place it to the side, never losing more then he came to the table with.

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