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

According to Odaily, Vitalik Buterin posted on the social platform X, stating that current prediction markets are overly focused on short-term crypto prices and high-dopamine products such as sports betting, lacking long-term social informational value, which may result in unhealthy product-market fit. He suggested that prediction markets should be promoted in the direction of "risk hedging," making them tools to reduce asset or real-world expenditure risks. Buterin also envisioned building a stable mechanism to replace fiat currencies 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 simply relying on speculative traffic.