Explosion! Vitalik Insightfully Reveals the Dilemma of Prediction Markets, Solving the Interest Problem, Trading Volume May Experience Explosive Growth

According to ChainCatcher, Ethereum founder Vitalik Buterin recently spoke out, bluntly stating the fatal flaw in current mainstream prediction markets — the lack of an interest payment mechanism, a problem that severely undermines its attractiveness in the hedging field.

Vitalik stated that once investors participate in prediction markets, it is equivalent to giving up the 4% annualized return available on USD assets, a cost that deters many funds. The current situation where mainstream prediction markets do not pay interest makes them pale in comparison to traditional financial products and some DeFi projects that can provide stable returns.

However, Vitalik still holds great expectations for the future of prediction markets. He predicts that once the interest issue is properly addressed, prediction markets will unlock a plethora of previously unseen hedging application scenarios. Imagine that investors can not only predict the outcomes of events in prediction markets but also earn stable interest returns; this will attract a large influx of institutional and retail funds, and trading volume is expected to experience explosive growth. This will not only bring a new spring of development to prediction markets but also inject more vitality and innovation into the Ethereum ecosystem.