... bitsharesX uses a prediction market or information market. The two terms are interchangeable.
Prediction Market = Information Market
but Information Market != BitSharesX != New York Stock Exchange
Is the price of a bitAsset not a prediction on the price of a real asset in the immediate future?
No, not necessarily. If the price of milk is falling, I might wait for a cheaper price or I might just buy it to get out of the store. If anything, it would be a prediction on the future price of a virtual, not real, asset. BitGold is not Gold.
Do traditional financial markets not incorporate future prediction and speculation into the price of traded assets?
They do, but traditional financial markets are not prediction markets as they are currently defined by users / owners / academics. If you claim that anything that "incorporates future prediction and speculation into the price of traded assets" is a prediction market, then you are claiming that many humans are prediction markets. That's clearly not what people mean when they say "Prediction Market".
You can argue whether or not a bitshares is a traditional prediction market, but such a discussion misses the point.
It clearly does not. Your earlier comments are unambiguously interpreted as the following:
Question: "Will bitUSD track well?"
Premise 1: Prediction Markets do 'track well'.
Assumption 1: BitUSD is a Prediction Market
Conclusion: BitUSD will track well.
I don't know how you can say that a challenge to Assumption 1 misses the point. It almost IS the point.
All the theory behind the bitshares platform is empirically proven...
Can you provide any example of this proof?