11–20 of 109 posts
can we stop calling them "prediction markets" and please call them what they actually are: gambling
Some prediction markets can be gambling, some not. Gambling is a broader category that does not include all of the prediction markets.
can we stop calling them "prediction markets" and please call them what they actually are: gambling
Honest question which I think is at the heart of the question: What’s the difference between these and NYSE / Robinhood?
can we stop calling them "prediction markets" and please call them what they actually are: gambling
Honest question which I think is at the heart of the question: What’s the difference between these and NYSE / Robinhood?
It becomes problematic when we make a game of it and add financial stakes. Gambling is a lot like drugs in its ability to hijack the brain's reward circuits. I stopped investing in cryptocurrencies because seeing +400% profits was like crack. I never gambled any money I couldn't afford to lose but there are people out there who were leveraging their entire lives to FOMO into markets.
Neither conservative nor Mormon, but online gambling is an addictive scourge that ruins lives, and I'd love to see it banned broadly. And go ahead and ban paid loot boxes as well. I don't love casinos or lotteries, but at least there's the friction of having to travel to a physical location to feed your addiction. And then there's the whole "insider trading" and "gambling on war" angles that come into play with predi…
> it is clear from studies and from what we see with our eyes that ubiquitous sports gambling [...] is mostly predation on people who suffer from addictive behaviors.
> This is not a minor issue. This is so bad that you can pick up the impacts in overall economic distress data.
> the financial consequences of legalized sports betting [...] include a 28% overall increase in bankruptcies (!). [...] a 28% increase in bankruptcies is far more than I would have predicted. The typical adult bankruptcy rate is about 0.16%, so this would mean about 4bps (0.04%)/year of additional bankruptcies, or an over 1% additional chance a typical person goes bankrupt during their lifetime. [...] A bankruptcy is extremely socially expensive, on the order of $200k. That alone is almost triple the profits, and clearly wipes out all the social gains. Legalized online sports betting is currently a deeply, deeply horrible deal.
> [...] there might be a 3% overall increase in domestic violence as the result of legalized sports betting [...] This is a huge direct cost to bear. Domestic violence ruins lives. It also is a huge indicator that this is causing large amounts of distress in various forms, and that those gambling on sports are not making rational or wise consumption decisions.
As I get older I'm starting to realize, the Christians were right about everything.
Perhaps a solution instead of banning them would be to create a class similar to accredited investors that are allowed to participate. And stuff like market manipulation should just be prosecuted in old fashioned ways like we prosecute any crime.
It's like you make something legal, and some group of people try as hard as possible to push the limit as far as they can, and in turn ruin for everyone.
Neither conservative nor Mormon, but online gambling is an addictive scourge that ruins lives, and I'd love to see it banned broadly. And go ahead and ban paid loot boxes as well. I don't love casinos or lotteries, but at least there's the friction of having to travel to a physical location to feed your addiction. And then there's the whole "insider trading" and "gambling on war" angles that come into play with predi…
As much as I hate what gambling does on the society, I'm still not sure if banning this activity counts as freedom. I believe that grown consenting adults do have a free will and should have the ability to destroy their lives if they so choose. OTOH allowing those kind of activities WILL end up with people opting in for the greater evil and thus some kind of limits should be enforced by governments. I have no idea wh…
I'm not sure why we think this works.
Gambling is considered bad, and banned in many states, but many of those states run a lottery. This is just a straight up theft from the poor who are least well equipped to understand they are playing a rigged game, and not rigged in their favor.
Earlier quoted context omitted.
Honest question which I think is at the heart of the question: What’s the difference between these and NYSE / Robinhood?
You actually own something when you buy stock.
https://en.wikipedia.org/wiki/Depository_Trust_%26_Clearing_...