gwern comments on Raising the forecasting waterline (part 2) - Less Wrong
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FWIW, my own Obama probability is more like 65-70%.
Bets are typically paid as Paypal, Bitcoin, or donations to specified charities.
I personally don't use Intrade because the new fees make it very expensive for low-stakes long-term bets like most bets on LW (assuming the market even exists).