Posted by madihaa 5 hours ago
Money is neither created nor destroyed in prediction markets. (In most cases, the collateral goes into boring money market fund like fixed-income products, as far as I understand.)
The real concern here is that, for many people, paid employment simply doesn't look like a viable way to earn a living anymore, so they feel the need to play high-risk, high-reward games in the first place. Capital markets are a great way to preserve and modestly grow one's wealth. If there's no reasonable perspective of any wealth in the first place, is it any wonder that people are looking beyond?
In other words: If your job is at most paying half of what you need to lead the life you want to live (and that, in many cases, your parents have been able to afford working the same job just fine), suddenly betting on a game that pays double or nothing doesn't seem so irrational anymore.
This cannot possibly be the motivation; gambling is very rarely a worthwhile investment.
Manipulation through advertising, mobile app behavior alteration, and ease of access are the sole motivators here.
And why would they when there's very few options to begin with.
I dont get what you think is happening when people gamble or take drugs. Rarely is the reason rational and sober.
The odds are such that they loose. Gamblers end up with less money. These people are addicts solving their emotional problem at high financial cost and debt.
> suddenly betting on a game that pays double or nothing doesn't seem so irrational anymore.
It is as irrational as in any other situation. And odds are not double or nothing. That would simply made betting pointless
How about some real journalism about how propping up the economy through money printing has destroyed opportunity for the current working generation which has led them to these types of behaviors?
> More than a quarter of Gen Z and millennials surveyed together by Global Strategy Group said they participated in prediction markets, versus 10% of Gen X and just 2% of baby boomers.
The 25% of “prediction market” users are entirely doing sports gambling. Two different things that the gambling market desperately wants everyone to confuse.
BS article, do not read.
Yes. Everyone seems to like sports gambling and no one whatsoever cares about non-sports-gambling prediction markets. Thats the difference. Framing this as an issue about prediction markets is misleading. It’s about sports gambling only
> If all of this money went into the capital markets instead, it would finance the growth of companies through innovation and entrepreneurship, as well as infrastructure that girds the economy.
It's all about the fortune spent on prediction markets. The NBA just announced deals with them. It's capitalism's ultimate dream: "Self Regulation".