Vitalik: Prediction markets should shift from speculation to "hedging financial infrastructure"

PANews reported on February 14th that Ethereum co-founder Vitalik Buterin stated that current prediction markets overemphasize short-term cryptocurrency prices and "dopamine-inducing" products like sports betting, creating a business model that relies on "naive traders" (participants with flawed opinions) losing money, making it difficult to generate long-term social information value. Vitalik proposed shifting prediction markets towards broader "hedging" uses, including hedging political risks for investors holding specific stocks, and customizing "future spending baskets" for individuals and institutions through prediction markets targeting various goods and services price indices. This would replace traditional fiat stablecoins and monetary concepts, building a new generation of financial infrastructure based on assets like ETH, combining return and risk management functions.