Vitalik Buterin: Prediction Markets Need Transformation Ethereum co-founder Vitalik Buterin pointed out that prediction markets are overly catering to short-term speculation and need to shift toward AI hedging tools to avoid collapse. He proposed combining prediction markets with price indices of physical goods to create personalized market baskets as an alternative to fiat currencies and stablecoins. He warned that current market participants are mainly uninformed retail investors, and risks are accumulating. (theblock)