Vitalik Buterin thinks that prediction markets are missing the big picture. In a recent post, the founder of Ethereum said that these platforms can be more than places to bet on elections or crypto prices. In his view, they have the potential to become fundamental financial instruments, perhaps even traditional fiat alternatives such as the US Dollar.
Platforms like Polymarket have exploded in popularity, but Buterin believes they are gravitating toward what he calls “corposlop.” Too many guesses. Nothing is enough.
His vision is pivotal. Instead of pure gambling, prediction markets can be used for financial security and communication. That shift could shift them from entertainment products to critical infrastructure, potentially reshaping how sustainable value is created and trusted online.
Lately I’ve been starting to worry about the state of the prediction markets, in their current form. They have achieved a certain level of success: the market volume is high enough to make meaningful bets and have a full-time job as a trader, and they often seem useful as…
— vitalik.eth (@VitalikButerin) February 14, 2026
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This is important because currently, crypto users rely on stablecoins (tokens pegged to the dollar) to stay safe from volatility. Buterin suggests a radical alternative where we use prediction markets to maintain our purchasing power, potentially rendering a traditional fiat currency ineffective.
How Buterin Sees Prediction Markets Evolving
In the long thread on X, Buterin did not sugarcoat it. He said the prediction markets are skewed towards an unhealthy product balance, dominated by short-term value betting and sports-style gambling. In his view, that is a waste of what the technology could be.
His correction is surprisingly bold. He calls it a fence in the general sense. Instead of holding a dollar-denominated stablecoin, you can hold a basket of forecast market positions tailored for your life.
However, he even suggests that AI could track your spending habits and automatically buy predictive stocks against price increases on the things you actually eat. Groceries. Hire. Power. Whatever is important to you.
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(Source: Polymarket Open Interest / The Block)
The end goal is clear. He said plainly. Replace fiat money. I call you here, it’s impossible, thanks for the idea, Buterin.
For investors and owners of Ethereum, this represents a long-term vision rather than a quick tool. However, it shows where the brightest minds in crypto want to take the technology. If developers start building these tools, we could see a new class of DeFi applications focused on “personal inflation protection” rather than just profitable farming.
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The post Vitalik Buterin: Prediction Markets Can Replace Fiat Currency appeared first on 99Bitcoins.
