Buterin says combining on-chain prediction markets with AI tools (such as LLMs) will help people manage everyday expenses and protect themselves from rising costs.
In this model, prediction markets would track the prices of essential goods and services across different regions.
AI tools would then analyze a person’s spending habits and recommend personalized positions tied to their future expenses.
“You have price indices on all major categories of goods and services that people buy (treating physical goods/services in different regions as different categories), and prediction markets on each category.”
The idea is that if the cost of living rises, gains from these prediction market positions could help offset those increases. This could give individuals and businesses a way to protect their purchasing power.
Not everyone’s happyAs expected, Buterin’s post saw strong reactions on X, with many users defending the buzz as a necessary entry point. One user wrote,
“For a lot of regular people, memecoins and prediction markets aren’t just dopamine… they’re hope.”
Others argued that the hype creates the liquidity needed for real hedging to exist. Some even addressed practical challenges, stating,
“The hedging layer is emerging directly from the speculative base.”
If speculation is limited, there is the risk that users might leave for other platforms where they feel more accepted.
Final Summary
- Vitalik Buterin wants prediction markets to protect people from inflation and rising living costs.
- However, there is the risk of limited speculation slowing growth.