The surge in speculation driving prediction markets and leveraged bets on various sectors isn’t reckless, it’s rational, according to CoinFund managing partner David Pakman.

In a presentation during Consensus Hong Kong, Pakman reframed the behavior as “economic nihilism,” a calculated response by Gen Z to structural barriers in wealth building.

His case started with housing. For Gen X and Boomers, he said, the average home cost about 4.5 times their annual salary. For Gen Z, it’s closer to 7.5 times.

That shift, Pakman argued, effectively shuts younger people out of the housing market, long considered the cornerstone of middle-class wealth. Only 13% of 25-year-olds own their homes, over half of Gen Z investors now…