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Prediction markets function as zero-sum speculative environments where retail traders consistently lose to institutional algorithms and data advantages. These platforms lack legitimate hedging utility and carry high manipulation risks.

Impact: Prevents capital misallocation and protects organizations from treating speculative betting as strategic forecasting.

— from Geopolitical Shocks, Energy Regulation, and Market Speculation · Mikroökonomen a.k.a. Mikrooekonomen· May 17, 2026