Prediction markets, where participants bet on the outcomes of political and other real-world events, are experiencing a surge in popularity and funding, especially after recent policy changes in 2024. Platforms like Polymarket and Kalshi have attracted significant investment and user interest, blurring the lines between financial trading and gambling. Supporters argue that these markets can provide unique, real-time insights into future events that traditional analyses may miss. However, critics warn that without proper risk management, prediction markets can be as risky as gambling. The rise of decentralized and transparent platforms is fueling further growth, raising questions about their role in both finance and public forecasting.
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