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Vitalik: The advantage of prediction markets is that incorrect judgments will lead to losses, while accuracy may exceed media.
Foresight News reported that Vitalik Buterin, co-founder of Ethereum, responded to discussions about "prediction markets" by stating, "In token voting, if you vote for the wrong option, you won't be punished other than having a very small chance yourself of being the one who flips the result. In prediction markets, if you judge incorrectly, you will lose money; if you bet big on a wrong judgment, you will lose a lot of money. Personally, I find that the probabilities given by prediction markets are often more accurate than the impressions I get from (professional or social) media atmospheres. These markets actually help me stay rational and understand not to overestimate the importance of things (while also realizing when significant events truly occur)."
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