The rise of the Internet has given us an unprecedented opportunity to participate in the financial world. It has become common for newsletters to discuss stocks, commodities, and other financial topics. While most newsletters rely on their readership to provide useful information, there are some exceptions. A growing number of websites are focused on specific industries or have niche audiences. For example, MySpace and Facebook play in the less Seriousmarketsserious markets. It can be helpful or detrimental, depending on the author's knowledge and agenda.
One of the most fascinating aspects of these sites is that they offer prediction markets. They can be anything from the daily close of the Dow Jones to US Presidential elections and the timing of North Korean missile launches. These are illiquid markets, with wide spreads, but the profits can be huge for the liquidity providers. As an example, I once speculated on Malcolm Turnbull's first election as Liberal Party leader. The implied probabilities were extremely informative and made me an entire short position on the political future.
Intrade is a popular platform for online traders. Its website allows you to trade on predictions of future events. Among these are the daily Dow closing, US Presidential elections, and timing of North Korean missile launches. Intrade contracts are often illiquid with wide spreads, but they can be profitable for liquidity providers. I was short-interested in Malcolm Turnbull's first time leading the Liberal Party. I also had a long-term bet on him to win his party's leadership vote. I'm not saying that he will be elected, but I think he'll be a strong candidate.
As a matter of fact, we're not the only people who are skeptical of the Trump presidency. As a matter of fact, many of the predictions we make are based on real events. The only thing that is certain is that if a market doesn't like the president, then it's not a serious market. We should take Trump's tweets as signals of a possible change in direction.
There are many kinds of markets that can be profitable for investors. For example, Quantum (Qtum) is a protocol asset that requires developers to create smart contracts. This is a niche market that is not very likely to grow rapidly and has the potential to scale. If a company wants to be successful, it must be serious about its business model and its product. Despite its high price, it's best to have a long-term view.
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