In a Down Crypto Market, Does Investing in Prediction Markets Make Sense?
Investors look to prediction markets for higher returns, but that's probably a bad idea.
Overview
With crypto in a bear market, some crypto investors are looking for alternatives. Prediction markets are one option. On Kalshi, it's possible to buy contracts that pay out if a specific outcome occurs, including those tied to a given cryptocurrency's price on a given date.
Kalshi also lists perpetual futures for Ethereum (CRYPTO: ETH), XRP (CRYPTO: XRP), and a dozen other coins, and to many investors, getting paid for a correct prediction sounds like a cheaper way to earn a return than buying and holding. But does that actually make sense, or is there a flaw in the logic?
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Details
Source
Originally published at www.fool.com.
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