Why are billionaires pouring into the forecast market

The forecast market is attracting top billionaire investors, with Kalshi topped the list after a $2 billion valuation after a round of funding in June. With the support of Charles Schwab, Henry Kravis and Peng Zhao of Citadel, Kalshi has received regulatory approval for election betting, with the number of users rising to 2 million, processing more than $1 billion in election betting. Its rival Polymarket is valued at $1 billion, with investors including Peter Thiel and Vitalik Buterin. Both platforms offer contracts covering events ranging from elections to Bitcoin prices, with fees ranging from 1.5% to 10% per transaction. Kalshi has now exceeded $1 billion in monthly trading volume, with a total trading volume of $6.9 billion since its inception.