Vitalik Buterin discusses challenges in prediction markets
According to PANews, Ethereum founder Vitalik Buterin highlighted an important issue in traditional prediction markets. He noted that most of these markets do not offer interest rates, making them less attractive for hedging. Participants in these markets are effectively sacrificing a 4% annual interest rate in US dollars. Buterin expects that once this issue is resolved and trading volumes increase, numerous use cases for hedging will emerge.