Most people think of prediction markets as gambling
In fact, that's not the case at all
Just look at how these platforms operate — the price itself is information. When you buy YES or NO, you're not just making a statement, but actually betting with real money. This is the key to turning noise into signals.
A 30% YES price is not just a casual remark. It reflects the genuine judgment of capital. Buyers verify the credibility of this prediction with real money. This kind of cost — monetary cost — is what filters out true signals.
Prediction markets are essentially information markets. Price fluctuations reflect the genuine opinions of participants, not emotions.
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ProposalManiac
· 5h ago
Price discovery mechanism vs gambling, the difference lies in incentive compatibility. Once participants' economic interests are linked to the accuracy of information, noise will naturally be eliminated.
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TokenSleuth
· 5h ago
Finally, someone has clearly explained that price is the most honest voting mechanism.
Real money is much more powerful than words; this is the core competitiveness of prediction markets.
Wait, those who say this is gambling probably haven't truly understood the concept of cost.
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MelonField
· 5h ago
Uh... If you think about it this way, gambling is also an information market, except the information comes from probability and statistics.
But on the other hand, having real money can indeed filter out some blabber.
Behind the 30% price, it means someone is really betting with money.
It's just... what's the difference between this "real signal" and the signals from big players dumping?
It still depends on whether the participants are sufficiently dispersed; otherwise, it becomes a game of pricing power among a few big players.
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ser_we_are_ngmi
· 5h ago
I agree with this logic. Using money to speak indeed filters out a lot of spam information.
Forget it, it's still gambling. Winners all say they are analysts.
Finally someone clarified this point: price = consensus, no problem.
Prediction markets are much more reliable than polls; at least participants have to put real money on the line.
But to be honest, most people are still gambling; they just don't want to admit it.
The term "information market" sounds nice, but essentially, the more participants, the more accurate it is—nothing different from gambling logic.
Does the price reflect true thoughts? Then why is this week's market so bizarre...
This is what I've been saying all along: incentive mechanisms are the key; money talks.
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LiquidityNinja
· 5h ago
This is what someone who understands prediction markets would say; everyone else is just a player.
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FortuneTeller42
· 5h ago
Wow, I’m convinced by this logic. Price = information is indeed a brilliant perspective.
Real gold and silver are needed to filter signals, which is much more reliable than just talking big.
Predictive markets are actually a mechanism for discovering value, not a gambling arena.
This is exactly what Web3 should be doing.
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OnChain_Detective
· 5h ago
okay but let me flag something here... price discovery ≠ signal filtering when you've got whale wallets clustering around certain outcomes. pattern analysis suggests these aren't organic predictions, they're coordinated positions. statistical anomaly detected tbh
Most people think of prediction markets as gambling
In fact, that's not the case at all
Just look at how these platforms operate — the price itself is information. When you buy YES or NO, you're not just making a statement, but actually betting with real money. This is the key to turning noise into signals.
A 30% YES price is not just a casual remark. It reflects the genuine judgment of capital. Buyers verify the credibility of this prediction with real money. This kind of cost — monetary cost — is what filters out true signals.
Prediction markets are essentially information markets. Price fluctuations reflect the genuine opinions of participants, not emotions.