In prediction markets, traders bet on the verifiable outcome of real-world events within a specified time frame. Typically, they buy stocks that say “yes” or “no” to the outcome, paying $1 for each stock if their prediction is correct and $0 if their prediction is not correct. . (On Polymarket, bets are settled in USDC, a stablecoin or cryptocurrency that trades 1:1 with the dollar. Other platforms, such as Kalshi and PredictIt, pay regular dollars.)
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