Notes related to prediction markets
I was wrong about Prediction Markets
Donald Trump just got elected, and while polls showed a very close race, prediction markets such as Polymarket were confident he would win. But why? I couldn't understand how they could be so certain when regular polling showed such unclear results.
I watched an interview with a French trader who invested millions of dollars betting on Trump's victory. This helped me understand what was really happening. Instead of writing about his research like a journalist would, this trader did careful analysis and put his money behind his findings. He spotted the difference between public perception and reality – and made a lot of money for his work.