alt Hacker NewsNot to side track too much from this discussion, but I looked at that PolyMarket event: "US civil war before 2027?" Currently, it is priced at 91.3 USD cents for No. If you bet 100 USD, the payout for No will be 109.43. That is very good return -- ~9.5% for 12 months of lending (as PolyMarket required full payment at the time of trade). That is twice the (retail) risk free rate at the moment. I am actually tempted to buy a large part of the order book. Am I missing something obvious?
Also, if you enjoy troll humor, the comments section is very funny.
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> Am I missing something obvious?
The low volume places a rather disappointing cap on your profits.
It's similar to selling options out of the money. You get compensated because nobody likes to pick up pennies in front of a steamroller.
There are a few like this. You can bet on Jesus not coming back in the calendar year for a little pocket money.
Funny, because a bit like the yes side of the civil war scenario, if JC comes back and someone is the sort of person to bet that he will, then do they really need the payout in those circumstances; and will the gambling website be in a position to pay out?
PolyMarket bets are becoming ever more problematic the wider it gets known, carrying the manipulation incentives from stock markets into every bettable aspect of society.
> Total garbage. Spread by a $9bn company with a 1m-follower account, a post viewed by 4.5m people. Pure disinformation for financial gain, with serious consequences for actual human lives. Shashank Joshi - @shashj - Jan 12 - https://x.com/shashj/status/2010766014829478393
If you haven't been paying attention to American politics, there are currently widespread protests due to a woman being shot by ICE last week. It looks like the current administration may be seeking violent unrest in the hopes of delaying elections.
> Am I missing something obvious?
Considering reports like "Polymarket refuses to pay bets that US would 'invade' Venezuela" [1] one risk is poorly written small print, meaning you might not actually be betting on the thing you think you're betting on. This could also err in your favour, of course - but it's still a source of risk.
There's also the risks involved in cryptocurrency generally - it's the wild west, rife with scams, hacks, unexpected fees, and paperwork.
And thirdly, prediction markets often lack market depth, so if you want to invest a non-trivial amount the price can move a lot. You want to gamble $2,000 to win $190? No problem. You want to gamble $200,000 maybe no-one will take your bet. Can you be bothered to go through all the KYC paperwork rigmarole for $190 ?
[1] https://news.ycombinator.com/item?id=46521773