Vitalik Buterin Raises Concerns about Prediction Market’s Ineffectiveness for Ethereum Hedging

Ethereum co-founder Vitalik Buterin has expressed his reservations about the efficacy of prediction markets in protecting traders from market volatility. While acknowledging their growing popularity, he argues that current platforms lack a key ingredient: the ability to offer interest-bearing instruments. This absence makes these platforms unattractive for risk management and primarily caters to speculation rather than hedging.