Vitalik Buterin urges prediction markets to move beyond uninformed bets toward AI-driven hedging tools

Ethereum co-founder and Polymarket investor Vitalik Buterin warned that prediction markets are increasingly centered on short-term speculation and retail gambling, which he believes threatens their long-term health. He proposed shifting these platforms toward AI-powered hedging instruments tied to real-world expenses, and argued that such markets, if denominated in productive assets, could eventually remove the need for fiat-pegged stablecoins.