The Rise of Prediction Markets: Unlocking the Power of Collective Intelligence
Prediction markets, in essence, are platforms where participants can buy and sell shares of future events' outcomes. These events can range from election results and stock market trends to weather patterns and box office success. Participants, often referred to as traders, use real money or virtual currency to invest in different outcomes. The prices of these shares fluctuate based on the traders' beliefs about the likelihood of specific events occurring.