# Probability Related Articles

HTX News Center provides the latest articles and in-depth analysis on "Probability", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Probability in the Price: How World Cup Odds Are Calculated

**The Probability in the Price: How World Cup Odds Are Calculated** Two major systems released their "championship probabilities" before the 2026 World Cup, and they disagreed on the favorite. Prediction market aggregators listed France at around **17%**, while the Opta supercomputer gave European champion Spain **16.1%**. These numbers look similar, but their production methods are fundamentally different. The market's **17%** is the **price** that clears after hundreds of millions of dollars in trading across platforms like Polymarket and Kalshi, where contracts trade between 0 and 100 cents, directly representing implied probability. This liquidity is provided by crypto-native market makers like Wintermute, though the market still has "the liquidity profile of an early-stage" asset class. In contrast, Opta's **16.1%** is a **simulated frequency**. Its model uses team data (including betting market odds as an input) to estimate match probabilities, then runs **10,000 full tournament simulations**, counting how often each team wins. Which is more accurate? There is **no rigorous, cross-tournament academic study** directly comparing their track records. However, a persistent **longshot bias**—where low-probability outcomes are systematically overvalued—observed in traditional betting for nearly a century, has also been found in modern crypto prediction markets. Research shows low-price contracts on Kalshi/Polymer less likely to pay out than their implied odds suggest. Unlike traditional bookmakers, prediction markets operate on **public blockchain ledgers**, making every transaction auditable and enabling such research. However, price formation is also influenced by **regulatory uncertainty**, as seen in recent US state-level bans and legal battles over jurisdiction. In summary, the "probability" you see is either a **market-clearing price** subject to behavioral biases and liquidity constraints, or a **model-simulated frequency** that partially incorporates market data. The question of which method is more reliable remains open, highlighting the importance of asking: **How was this number produced?**

marsbit06/05 00:26

Probability in the Price: How World Cup Odds Are Calculated

marsbit06/05 00:26

a16z Crypto's Latest Article: Why Do We Need Prediction Markets?

Prediction markets allow people to trade on the outcome of future events. They function as markets that aggregate dispersed information into a price signal, which represents the collective probability of an event occurring. By creating assets that pay out only if a specific outcome happens, these markets enable participants to bet based on their knowledge and beliefs. These markets have historical precedents, like 16th-century papal selection bets, and modern foundations in economics and market design. They offer advantages over traditional forecasting tools like polls: they provide direct probability estimates, update in real-time, and incentivize participants with real financial stakes to contribute accurate information. This can lead to more informed predictions, even for highly specific questions—such as which AI model performs best on certain tasks—that aren't covered by traditional commodity or stock markets. However, prediction markets face challenges. Infrastructure is needed to verify outcomes and ensure transparent, auditable operations. Market design must encourage participation from diverse, informed individuals while mitigating issues like insider trading or manipulation attempts aimed at distorting public perception. Despite these hurdles, with proper design focusing on transparency and participation management, prediction markets have significant potential as a core tool for forecasting the future.

marsbit06/02 14:34

a16z Crypto's Latest Article: Why Do We Need Prediction Markets?

marsbit06/02 14:34

After UFO Files Released, Why Does Prediction Market Only Price Alien Existence Probability at 20%?

Following the official release of over 160 declassified UFO/UAP files by the U.S. Department of Defense, featuring videos, photos, and historical reports from NASA, FBI, and other agencies, public discussion has surged. However, the prediction market platform predict.fun shows measured skepticism. The probability for the event "Will the US confirm that aliens exist before 2027?" remains at only 20%. This is because the market does not trade on the philosophical question of extraterrestrial existence, but specifically on whether the U.S. government will officially and explicitly acknowledge it by the end of 2026. While the document release increases transparency and provides compelling, unexplained cases—like a jellyfish-shaped object over the UAE or anomalies near Apollo missions—it presents historical data without official interpretation or confirmation. The market views this as expanding the pool of evidence rather than providing a definitive conclusion that would compel a governmental statement. The 20% probability reflects a time-discounted assessment, acknowledging potential for future disclosures while doubting a conclusive official acknowledgment within the tight deadline. Thus, the event highlights how prediction markets concretize abstract mysteries into tradable contracts based on verifiable outcomes and specific timelines.

marsbit05/09 01:20

After UFO Files Released, Why Does Prediction Market Only Price Alien Existence Probability at 20%?

marsbit05/09 01:20

After the UFO Files Are Made Public, Prediction Markets Only Price the Probability of Alien Existence at 20%?

The U.S. Department of Defense has launched a website declassifying UFO/UAP files, releasing an initial batch of over 160 documents. These include videos, photos, mission logs, sighting reports, and communications from agencies like NASA and the FBI, featuring unexplained incidents such as anomalous lights near Apollo missions and a "jellyfish"-shaped object over the UAE. Despite widespread public discussion, the prediction market predict.fun shows only a 20% probability that the U.S. government will officially confirm the existence of extraterrestrial life or technology by December 31, 2026. The market's focus is not on whether aliens exist, but on whether U.S. authorities will make a definitive, binding statement before the deadline. Analysts note the file release provides transparency and fuels debate but does not constitute an official confirmation. The 20% odds reflect a time-discounted assessment, acknowledging the possibility of future evidence while doubting a conclusive governmental stance within the current year. This event highlights how prediction markets translate speculative narratives into tradable contracts based on verifiable outcomes and specific timelines.

Odaily星球日报05/09 01:14

After the UFO Files Are Made Public, Prediction Markets Only Price the Probability of Alien Existence at 20%?

Odaily星球日报05/09 01:14

Can You Make a Steady Profit by Blindly Following Polymarket's Pre-Game Win Probability to Bet on NBA Games?

The article investigates whether blindly betting on NBA teams with higher pre-game win probabilities on Polymarket guarantees profits. Backtesting data from the 2025-26 regular season (1,096 games) shows that a strategy of consistently betting $100 on the team with the higher pre-game probability resulted in a net loss of $2,054 (ROI: -1.87%), indicating that the market is efficient and prices are accurately set. Further analysis reveals that returns varied significantly by team. Certain teams, such as the Trail Blazers (POR, 19% ROI), 76ers (PHI, 14%), Spurs (SAS, 12%), Lakers (LAL, 11%), and Hornets (CHA, 9%), consistently outperformed market expectations when favored. In contrast, top-performing teams like the Celtics, Knicks, and Nugks had ROIs close to zero or negative, showing their probabilities were efficiently priced. The weakest teams showed extreme ROI variations but had insufficient sample sizes for reliable conclusions. The key takeaway is that blindly following pre-game probabilities is not a profitable strategy overall, but targeting specific teams may yield better results.

marsbit04/17 07:02

Can You Make a Steady Profit by Blindly Following Polymarket's Pre-Game Win Probability to Bet on NBA Games?

marsbit04/17 07:02

Can You Make a Steady Profit by Blindly Following Polymarket's Pre-Game Win Probability to Bet on NBA Games?

**Can You Consistently Profit by Blindly Following Pre-Game Win Probabilities on Polymarket for NBA Games?** A backtest of the entire NBA 2025-26 regular season (1,096 games) was conducted to test the strategy of always betting $100 on the team with the higher pre-game win probability on Polymarket. The results show that this strategy is not profitable. The total amount wagered was $109,600, with a return of $107,545.20, resulting in a net loss of $2,054 and a Return on Investment (ROI) of -1.87%. This indicates that the market is highly efficient, and pre-game probabilities are accurately priced, leaving no simple arbitrage opportunity. In fact, blindly following the market would have been slightly less profitable than betting against it. However, a deeper analysis by team revealed significant differences. Certain teams consistently outperformed market expectations when they were favored to win: * Portland Trail Blazers (POR): 19% ROI * Philadelphia 76ers (PHI): 14% ROI * San Antonio Spurs (SAS): 12% ROI * Los Angeles Lakers (LAL): 11% ROI * Charlotte Hornets (CHA): 9% ROI In contrast, the market was highly efficient for the top-performing teams, offering minimal returns (e.g., Boston Celtics ROI: 4%, Denver Nuggets ROI: -5%). Results for the weakest teams were too inconsistent due to small sample sizes. The key finding is that team-specific factors, rather than the probability percentage itself, drive potential value, making a one-size-fits-all strategy ineffective.

Odaily星球日报04/17 06:58

Can You Make a Steady Profit by Blindly Following Polymarket's Pre-Game Win Probability to Bet on NBA Games?

Odaily星球日报04/17 06:58

A Once-in-300-Years Event? Independent Solo Miner "Hits the Jackpot," Claims $220K Bitcoin Block Reward Alone

A solo Bitcoin miner with only 70 TH/s of hashrate has successfully mined block 944,306, earning the full 3.128 BTC block reward (approx. $222,000). This miner’s computing power represents just 0.000007% of the total network hashrate, making the probability of such an event roughly once every 300 years on average. The miner used CKpool’s solo mining service, which allows individual miners to work independently rather than in a pool, keeping the full reward minus a 2% fee. This is the 313th solo block mined via CKpool since 2014. Remarkably, this is the second such unlikely event within ten days, highlighting the lottery-like nature of solo mining—where small miners occasionally win big despite extremely low odds.

marsbit04/10 12:43

A Once-in-300-Years Event? Independent Solo Miner "Hits the Jackpot," Claims $220K Bitcoin Block Reward Alone

marsbit04/10 12:43

Oscars Preview: Who Are the Big Players in Prediction Markets Betting On?

"Oscar Predictions 2026: Where Are the Prediction Market Whales Placing Their Bets?" As the 98th Academy Awards approach on March 15, 2026, the crypto prediction market Polymarket is offering its own forecasts on the winners, with significant trading volume indicating where large bettors, or "whales," are placing their capital. In the high-stakes Best Picture category, "One Battle After Another" is the current frontrunner with a 76% probability, followed by "Sinners" at 20%. Analysis of top wallets shows one address holds a substantial "YES" position on this outcome with an 89.7% win rate. The Best Actor race has seen a major shift; Timothée Chalamet was previously the favorite with an 80% probability, but Michael B. Jordan has now surged ahead to a 57% chance. Notably, the top wallet betting "YES" on Jordan has a negative historical profit, while a major "NO" bettor on Chalamet has profited over $2.82 million. Several categories appear to be near-certain "sure bets" or "savings plans." Paul Thomas Anderson is the overwhelming favorite for Best Director with a 91% probability. For Best Actress, Jessie Buckley leads with a 97% chance. "Sinners" also dominates Best Original Screenplay with a 96% probability. Other closely watched categories include Best Supporting Actress, where Amy Madigan leads at 52%, and Best Supporting Actor, where Sean Penn is the favorite at 73%. "One Battle After Another" also leads in Best Cinematography with a 73% probability.

Odaily星球日报03/12 02:44

Oscars Preview: Who Are the Big Players in Prediction Markets Betting On?

Odaily星球日报03/12 02:44

Brad Garlinghouse says CLARITY Act could pass by April as Polymarket odds hit 85%

Brad Garlinghouse, CEO of Ripple, has stated that the US CLARITY Act could pass as early as April, signaling potential regulatory clarity for digital assets. This optimism is reflected in prediction markets, with Polymarket traders assigning an 85% probability of the bill becoming law by 2026, a significant increase from 60% earlier this year. Garlinghouse and other industry leaders view the legislation as a crucial step toward resolving long-standing regulatory uncertainty, which they argue has disadvantaged US crypto firms. While some industry reservations remain about specific provisions, the rising market confidence suggests passage is increasingly seen as the base case. The act is viewed as a medium-term structural shift rather than an immediate market catalyst.

ambcrypto02/19 20:43

Brad Garlinghouse says CLARITY Act could pass by April as Polymarket odds hit 85%

ambcrypto02/19 20:43

High-Frequency Trading, $100K Annual Income: The Most 'Boring' Profit Myth on Polymarket

A user known as planktonXD (0x4ffe49ba2a4cae123536a8af4fda48faeb609f71) has generated over $106,000 in profit on Polymarket within a year by executing more than 61,000 predictions—averaging around 170 trades per day. This high-frequency, automated strategy focuses on exploiting small, certain opportunities rather than betting on high-risk, high-reward outcomes. The approach is characterized by market-making and micro-arbitrage: placing orders on both sides of the order book to capture spreads or profiting from mispriced options in low-liquidity markets. The largest single win was only $2,527, illustrating a disciplined, risk-managed method that avoids large drawdowns. The bot operates across diverse categories—sports, weather, crypto prices, politics—constantly scanning for pricing inefficiencies. Notable examples include buying heavily undervalued options in niche markets, such as esports matches or extreme crypto price movements, where probability is mispriced due to emotional trading or thin order books. For instance, a $16 bet on SOL falling to $130 (priced at 0.7¢, implying <1% chance) returned $1,574 during a volatile period. Key takeaways: The strategy highlights the power of compounding small gains, the necessity of automation and API tools, and the superiority of high-probability opportunities over high-risk bets. In prediction markets, the most advanced approach isn’t forecasting—it’s managing probability and liquidity.

marsbit02/11 13:06

High-Frequency Trading, $100K Annual Income: The Most 'Boring' Profit Myth on Polymarket

marsbit02/11 13:06

活动图片

Hot Categoriesright-arrow

Hot Tagsright-arrow

Regulatory Policy

Project Updates