Vitalik Buterin called prediction markets a more rational alternative to social media, especially when discussing sensitive topics.
According to him, users of online platforms can irresponsibly fuel panic. The media, which often heighten anxiety with sensational headlines and thereby fuel debate, act in a similar way. Prediction platforms address this issue through a mechanism of financial accountability: reckless or "stupid" bets lead to real losses.
Buterin believes that the risk of losing money forces participants to seek objective information rather than succumb to emotion. As a result, such markets provide more accurate assessments of probabilities and better reflect the real world.
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Vitalik Buterin called prediction markets a more rational alternative to social media, especially when discussing sensitive topics.
According to him, users of online platforms can irresponsibly fuel panic. The media, which often heighten anxiety with sensational headlines and thereby fuel debate, act in a similar way. Prediction platforms address this issue through a mechanism of financial accountability: reckless or "stupid" bets lead to real losses.
Buterin believes that the risk of losing money forces participants to seek objective information rather than succumb to emotion. As a result, such markets provide more accurate assessments of probabilities and better reflect the real world.