Suddenly, prediction markets are everywhere. It’s not just professional investors attempting to predict the trajectory of the economy or the stock market, it’s everyday people attempting to predict the outcomes of sporting events, elections, and even geopolitical standoffs.

Sound familiar? In many ways, prediction markets are mirroring crypto’s boom. What started as a somewhat sketchy and highly speculative activity carried out in the backrooms of the internet has suddenly gone mainstream.

A booming new financial asset?

Using official “event contracts,” investors are making predictions about interest rates, future GDP growth, and the ability of companies to hit their earnings targets. How is this really any different from top Wall…