Coinflip of the century (experiment in prediction markets, read description)
19
100Ṁ264
2099
52%
chance
15

As of creation, this market has exactly a 50% chance of resolving YES and a 50% chance of resolving NO by January 1, 2099, by the following mechanism:

Every year on January 1st, beginning 2025, I will resolve this market as YES with a probability of p=0.009199=1-0.5^(1/75).

If on January 1, 2099, after the last resolution attempt, the market is not yet resolved, it will resolve as NO.

Since there are 75 such attempts, the probability of resolving NO is exactly (1-p)^75 = 0.5, because that's the probability that the market does not resolve as YES in all 75 attempts.

This is an experiment in prediction markets. As this market evolves, I will reveal some results in the theory of prediction markets which I hope will convince some folks to change their trading strategy. Note that the process of resolution will remain exactly as described. All information is available

Note: To indicate that the experiment is still going, I will comment after each attempt and update this description. If I do not comment by January 31st of any year, mods are free to resolve this to NO with a probability of (1-p)^n, and YES otherwise, where n is the number of remaining attempts.

UPDATE January 1st 2025:

  • The market did not resolve on the first attempt. probability of YES by 2099 is now 49.53%

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what if you are dead by the time it is 2099?

It's January 1st, 2025. I ran the first attempt, and, as expected, the market will not resolve today.

The script I used for the attempt: https://gist.github.com/bary12/e915f7ec34341c3b9a337700020c8559
output of the script:

p = 0.00919938673477072
Does not resolve yet

The chance to resolve YES by 2099 is now 49.53%

opened a Ṁ1 YES at 49% order

@BaryLevy Any 2026 update?

I'm curious to hear people's reaction to this. Do you have any guesses what the purpose of the experiment is?

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@BaryLevy About discounting the value of a market resolution if it's in a long time?

@BaryLevy something to do with European style VS American style options?

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