The philosophers’ stone or stone of the philosophers (Alchemy) is a legendary alchemical substance said to be capable of turning base metals such as lead into gold (chrysopoeia) or silver. (Source: wikipedia)

The question is if the philosophers’ stone has not been discovered yet, does it mean it does not exist? Is there a business model to generate infinite profit?

There are a number of stories in the history in different cultures bringing huge fortune for mankind. For instance, the Sampo brings fortune to its owner in Finnish culture. There were based on human’s imagination but this imgination may come true one day.

Among them, there is the story of Wheat and chessboard recently raised as a problem by Ray Kurzweil. The king asks the creator of the chess for a reward. The man asked one grain of wheat for the first square, two for the second one, four on the third one, and double the amount each time. It was then calculated that was equal to wheat production of the whole country for several years.

Is there any market in the world with such potential to provide exponential profit? Forbes recently announced that SuperCell is the fastest-growing game company and analyzed other companies as well. If a market follows the same exponential profit growth as the chessboard problem then it is a different story. Such market exists but it is way difficult to find a solution to extract profit from that.

The answer is the “Sports betting markets” have the potential the generate such profit. There are more than 100 sports matches a day and if you come to a solution to predict only one of them correctly you can almost double your investment. Hence, every gambler has the opportunity to beat the market but it never happens in one day except for very few ones.

Recently, Analyst Masters, announced that it could analyze sports matches and predict their outcome at 98% accuracy. The system was tested on over 50,000 matches during two years. They could achieve 30% profit by simply using the system to predict the match outcome and bet accordingly. If they plan to acquire customers each subscriber can become a millionaire after 7 months with only $1000 investment. Despite of achieveing such big exponential growth the betting companies can not pay them back if they acquire only 1 customer for 1 year.

Are they willing to attract subscribers? If yes all bettnig companies will lose profit or may even go bankrupt. The question is how much they charge each customer when they know they make huge profit a year? If you have philosopher’s stone, how much do you sell it? philosopher’s stone is even more valuable than Coca-Cola Company’s secret recipe as its product is money not a product you have to sell to earn money.