Prediction markets also have problems around events with very low probability, as it is unattractive to lay bet low probability events, both qualitatively (people don’t like risking a lot of money for a small reward), and also quantitatively (you can often get similar returns just investing the money, usually at lower risk).
The latter of these problems is in theory solveable by an exchange paying interest on stakes, or by using fractions of stocks as currency, but neither of these options is implemented in a major market.
Prediction markets also have problems around events with very low probability, as it is unattractive to lay bet low probability events, both qualitatively (people don’t like risking a lot of money for a small reward), and also quantitatively (you can often get similar returns just investing the money, usually at lower risk).
The latter of these problems is in theory solveable by an exchange paying interest on stakes, or by using fractions of stocks as currency, but neither of these options is implemented in a major market.