This weekly roundup thread is intended for all culture war posts. 'Culture war' is vaguely defined, but it basically means controversial issues that fall along set tribal lines. Arguments over culture war issues generate a lot of heat and little light, and few deeply entrenched people ever change their minds. This thread is for voicing opinions and analyzing the state of the discussion while trying to optimize for light over heat.
Optimistically, we think that engaging with people you disagree with is worth your time, and so is being nice! Pessimistically, there are many dynamics that can lead discussions on Culture War topics to become unproductive. There's a human tendency to divide along tribal lines, praising your ingroup and vilifying your outgroup - and if you think you find it easy to criticize your ingroup, then it may be that your outgroup is not who you think it is. Extremists with opposing positions can feed off each other, highlighting each other's worst points to justify their own angry rhetoric, which becomes in turn a new example of bad behavior for the other side to highlight.
We would like to avoid these negative dynamics. Accordingly, we ask that you do not use this thread for waging the Culture War. Examples of waging the Culture War:
-
Shaming.
-
Attempting to 'build consensus' or enforce ideological conformity.
-
Making sweeping generalizations to vilify a group you dislike.
-
Recruiting for a cause.
-
Posting links that could be summarized as 'Boo outgroup!' Basically, if your content is 'Can you believe what Those People did this week?' then you should either refrain from posting, or do some very patient work to contextualize and/or steel-man the relevant viewpoint.
In general, you should argue to understand, not to win. This thread is not territory to be claimed by one group or another; indeed, the aim is to have many different viewpoints represented here. Thus, we also ask that you follow some guidelines:
-
Speak plainly. Avoid sarcasm and mockery. When disagreeing with someone, state your objections explicitly.
-
Be as precise and charitable as you can. Don't paraphrase unflatteringly.
-
Don't imply that someone said something they did not say, even if you think it follows from what they said.
-
Write like everyone is reading and you want them to be included in the discussion.
On an ad hoc basis, the mods will try to compile a list of the best posts/comments from the previous week, posted in Quality Contribution threads and archived at /r/TheThread. You may nominate a comment for this list by clicking on 'report' at the bottom of the post and typing 'Actually a quality contribution' as the report reason.
Jump in the discussion.
No email address required.
Notes -
I can't speak to Polymarket, but I was watching Predictit pretty closely. I saw a surge in market activity about a week ago with Trump moving from $0.49 to $0.56 and Harris dropping from $0.55 to as low as $0.48. I predicted this was a pump-and-dump and that the prices would inevitably settle back to $0.50-ish (there's not really enough volume to to totally wipe the pump, IMO). I missed the $0.48 shares for Harris, but she's back up to $0.51 and Trump is back down to $0.53. Had I taken the Trump short and gotten in at the Harris Lows I could have made $6 for every $100. Not huge, but basically proves my point that these market moves are opportunities for scalping and the race is strictly 50/50...at least for now.
This theory doesn't work unfortunately. PredictIt is not a real market. Betters are limited to $850 per contract. Also, to buy shares in both Kamala and Donald would cost you $1.06 right now. On Polymarket you can own both for $0.998.
So your 6% profit all gets eaten by transaction costs. And it's not possible to buy more than $850, so it's also impossible for a single whale to pump and dump. Polymarket is a liquid prediction market. PredictIt, on the other hand, is just a toy. That explains the weird behavior you are seeing.
If you are confident that Kamala has a greater than 41.7% chance of winning you can go on Polymarket right now and make real money.
My point is this wasn't the case a few days ago. I could have bought Harris at $0.48 and sold Trump at $0.56 (aka buy 'No' at $0.44). Selling at market today would have been profit.
As for pump and dump, I think these markets are so thin that $850 would look like a pump and there's no reason to think, if it was a pump, that there was only a single individual involved. Volume doubled for a three day stretch, so something was happening and it was unlikely a single person.
I'm not confident in anyone winning anything...again, my point. I think the actual price per contract should be $0.50.
I'm also not trying to make 'real money' on prediction markets. I don't really understand who would do that...but w/e. What I'm interested in is how that market functions and how closely my predictions skew toward reality. Though, with your suggestion, I may take a closer look at Polymarket.
More options
Context Copy link
More options
Context Copy link
There's a speculative Twitter thread suggesting Polymarket is being distorted by a single huge better: https://x.com/Domahhhh/status/1846597997507092901
Seems possible, but also really stupid unless you think higher odds on Polymarket actually changes the real odds more than trivially.
If the market becomes obviously wrong (like Trump at 85%) then it will attract essentially unlimited money on the other side of the bet that will make it impossible for a single whale to fight.
They say that markets can stay irrational longer than you can stay solvent. But that's actually NOT TRUE about prediction markets because they have a concrete end date.
There's still risk discounting to account for. Even if the true odds are, say, 50-50: to counteract 25m of dumb money, the sharp traders need a bankroll in the order of billions of dollars to avoid kelly ruin, i.e. approximately the total volume on that market right now.
True enough. But 1 billion is a tiny amount of the available hot money, which is in the trillions. There's already been a couple billion gambled on this market.
Among high net worth people, there is a huge demand for investments which are both positive alpha and uncorrelated from the stock market. They are rare and precious. Hell, if Trump was at 85% right now, I'd throw in 50k myself.
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link
spreads would have nerfed some of those gains too
All of them actually.
More options
Context Copy link
More options
Context Copy link
More options
Context Copy link