The post Vitalik Warns Prediction Markets Are ‘Cursed,’ Pushes Hedging to Replace Fiat appeared on BitcoinEthereumNews.com.

Key Takeaways: According to Vitalik Buterin, prediction markets are being exploited towards short-term bets, bringing restricted value for society. He proposes converting these markets into large-size hedging tools, minimizing financial risks in practice. His vision includes AI-based personalized hedging portfolios that are able to threaten fiat-based price stability price models. Ethereum co-founder Vitalik Buterin is doubting the future of onchain prediction markets. Although volumes remain robust, he claims that the product concentration is shifting to the short run speculation, rather than the long run utility. Read More: Vitalik Buterin Sells $6.6M ETH in 3 Days as Ethereum Price Wobbles Prediction Markets Chasing Dopamine Buterin admits that prediction websites have achieved actual advancement. Traders are now able to place large bets and there are even those who make a life out of the market activity. The traditional news sources can easily be complemented by these markets, as they are expected to mirror the crowd anticipations on-the-fly. However, he believes they are converging toward what he calls an “unhealthy” product focus. Recently I have been starting to worry about the state of prediction markets, in their current form. They have achieved a certain level of success: market volume is high enough to make meaningful bets and have a full-time job as a trader, and they often prove useful as a… — vitalik.eth (@VitalikButerin) February 14, 2026 A variety of platforms are no longer focused on information discovery or on economic coordination; these platforms revolve around price movements, sports betting, and speculation around events. These markets make money particularly in bear markets when the users need volatility. However, they do not provide much informational value in the long run. Buterin indicates that the over dependence on uninformed trading can create distorted momentum. Platforms can prioritize the maximum interactive level rather than actual value,…

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Filed under: News - @ February 15, 2026 4:23 pm