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“And you ask, ‘What if I fall?’ Oh but my darling, What if you fly?”
Erin Hanson
A voice cuts through the track and asks, “What if I fall?” The answer follows: “Oh but my darling, what if you fly?”
Producers keep folding those lines into the dance music I listen to.
The words come from a poem. Erin Hanson wrote it at 18 and posted it to her blog, The Poetic Underground.
The lines traveled far enough that people credit them to Peter Pan.
“What if I fall” weighs the downside. “What if you fly” weighs the upside.
Say a bet costs you $1 when it misses, pays you $10 when it hits and hits 1 time in 3. Run it 30 times and you land around $80 ahead, even though most single bets lose. Gamblers call that a positive expected value bet: the odds pay you if you keep playing.
Odds like that are reason enough to bet before you’re certain.
You control whether you take the bet. The result is out of your hands.
Sam Bankman-Fried preached that math in interview after interview: positive expected value, take the bet. He ran FTX, a crypto exchange once valued at $32 billion.
An economist once asked him about a game: 51% it doubles the world, 49% it wipes the world out, played double or nothing.
He answered that maybe you play your way into “an enormously valuable existence.”
Gamblers size bets with the Kelly Criterion, a formula that keeps a run of losses from wiping them out.
Bet above Kelly and one miss can end you. Bet below Kelly and your wins stay too small to matter.
He tweeted that he’d bet bigger than the formula recommends.
In November 2022 FTX collapsed.
Customer deposits went down with it and a judge gave him 25 years.
The $80 arrives only if you survive all 30 bets. A 50% loss takes a 100% gain to climb back. Lose it all and the game ends.
Size each bet so a miss can’t finish you. Pass on games where a single turn can. When the odds pay, go.
🪂
What idea could you test at a survivable size?
