Comment by alpha_squared
12 hours ago
It's not a 'prediction market', it's a gambling market. It's far more accurate to say 80% of gamblers were convinced Bolsanaro would win than to say there's an 80% likelihood he would win. It's not measuring likelihood as it's untethered from things that impact the actual results. Obscuring it basic gambling with the word 'prediction' doesn't change the fact that's naked gambling at the end of the day.
It's extremely inaccurate to say 80% of the gamblers were convinced because that's not how it works at all. Each bet has someone on the other side of it - 50% of the people bet on Bolsanaro and 50% against.
If you bet on 20% chances and they happen 30% of the time you make money. The payoffs are such that you win by being a better predictor than the market. I'm fine criticizing it as a gambling blight (not to mention a corruption payoff) but it is also a prediction market.
The 80% is not the proportion of people who think he would win, that's not how these things work.
Every single factor was pointing towards Bolsonaro, Polymarket was just consistent with that.
He unexpectedly won the first round of the election. His lead was expected to grow since he'd likely get most of the votes of the other candidates. 17 out of 18 polls favored Bolsonaro. Market movements indicated a strong expectation of him winning. The Brazilian Real futures are already down 10% in the last couple hours.
But that's how democracy works, I think this election will be studied many times in the future.
> The Brazilian Real futures are already down 10% in the last couple hours.
Brutal.