- People born between 1997 and 2012, also known as Generation Z, are increasingly active in prediction markets.
- This is facilitated by low returns on traditional assets and high inflation, which devalues wages.
- For the sake of quick profit, they are willing to take risks and lose money.
Generation Z and millennials are more active users of prediction markets, even though many of them do not make money from these platforms.
According to Exploration According to Northwestern Mutual, 32% of Gen Z respondents in the US already have a prediction market account or are considering creating one. Among the general population, this figure is much lower—17%.
The World Economic Forum noted a rise in “financial nihilism” among young investors, who believe traditional assets are ineffective for achieving financial stability. Even now, members of Generation Z in the US perceive homeownership as an unattainable goal.
This situation is pushing younger users toward riskier financial products. Northwestern Mutual found that among Generation Z respondents interested in prediction markets, sports betting, cryptocurrencies, options, or meme stocks, 80% said they were attracted to these products because they felt financially lagging, including due to the slow-moving nature of traditional assets.
Traditional rules for handling money have been violated, said Personal finance expert Hayley Sachs: “Slow rates and small profits feel like a scam when inflation eats away at your paycheck and housing becomes unaffordable.”
Data from Northwestern Mutua
It’s worth noting that users who spend hours reading social media feeds think their awareness can function as market analysis.
Sachs added that this perception blurs the line between entertainment and investment. Prediction market interfaces often resemble sports apps or social media feeds more than traditional brokerage platforms, lowering the psychological barrier to participation.
Despite the high level of losses on platforms such as polymarket и KalshiThe number of young retail traders participating continues to grow. They appear willing to take risks, despite the statistics.
Prediction markets are increasingly starting to behave like another category of products for retail tradingFor brokers, this creates both new opportunities and operational challenges.
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