Vitalik Buterin: Prediction markets should shift towards risk hedging rather than short-term speculation

Vitalik Buterin posted on the X social platform, stating that the current prediction markets are overly focused on short-term cryptocurrency prices and high-dopamine products like sports betting, lacking long-term social information value, which may lead to an unhealthy product-market fit.

He suggested that prediction markets should be encouraged to develop towards "risk hedging," making them tools for reducing asset or real expenditure risks. Buterin also envisioned constructing a stable mechanism to replace fiat currency 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 financial system, rather than merely relying on speculative flows.