Vitalik Buterin: Predicting the market should shift towards risk hedging rather than short-term speculation

Vitalik Buterin, in a post on social media platform X, stated that current prediction markets are overly focused on short-term crypto prices and high-dopamine products like sports betting, lacking long-term social information value and potentially creating an unhealthy product-market match. He proposed that prediction markets should be driven towards "risk hedging," becoming tools for reducing asset or real-world spending risks. Buterin also envisioned building a stable mechanism to replace fiat currency through personalized prediction market share based on price indices, thereby providing users with more sustainable value hedging solutions. He called for building a new generation of financial systems, rather than simply relying on speculative flows.