Vitalik Buterin: Prediction Markets Should Shift Towards Risk Hedging, Not Short-Term Speculation

Odaily News Vitalik Buterin posted on social platform X, stating that current prediction markets are overly concentrated on high-dopamine product forms such as short-term crypto price speculation and sports betting, lacking long-term social information value, which could lead to an unhealthy product-market fit. He suggested that prediction markets should be steered towards "risk hedging," making them tools to mitigate risks associated with assets or real-world expenditures. Buterin also envisioned building an alternative stablecoin mechanism through personalized prediction market shares based on price indices, thereby providing users with more sustainable value hedging solutions. He called for the construction of a new generation of financial systems, rather than merely relying on speculative flows.