How to gamble and make money?

You paralyzed everyone except the last guy (and maybe big blind, depending on parameters) from betting, because all it takes to guarantee that you'll win over the guy before you is to bet. Why bet if the next guy can just 1up you and force you to lose? Also, by liberty of your logic, the guy that raised is breaking the rules anyways since he'd have to bet more than $1 to raise someone that bet $1.

I don't know what kind of game you play, but the versions I'm familiar with, when someone makes a bet and another person raises, everyone else (except the person who originally raised) has the option to either "call", "fold", or "re-raise". Sure, there can be a raise limit, which I suspect is what you're confusing yourself over. But there would be no Texas Hold'em or Poker if you went with your example.


(in the case of misinterpretation, no one's stupid enough to only bring $1 to the table or even just $10)

I know how to play texas, the example I gave obviously doesn't work to prove OP wrong.
OP is basically saying u bet $1, then $2, then $4, then $8 and etc...
but in texas the first round ur opponent can raise to the max amount of money you have, in that case you have to fold if ur going by OP's way of betting.