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Prediction markets could serve as a complete alternative to fiat currency by functioning as hedging tools, according to Ethereum co-founder Vitalik Buterin.
In a post on X last month, Buterin wrote that many prediction market platforms are “over-converging to an unhealthy product market fit” by favoring short-term “dopamine” hits over long-term utility.
For the sector to mature, it must move away from a “cursed” model built on uninformed gambling, Buterin argued..
Buterin said the issue comes down to who takes the losing side of trades. “Prediction markets have… ‘smart traders’ who provide information… and some kind of actor who loses money,” he wrote on X, referring to the counterparties who take the opposite side of those trades and absorb losses.
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Since these losses come primarily from uninformed traders, Buterin argues, platforms are incentivized to attract engagement-driven behavior. That dynamic pushes markets toward low-quality outcomes.
He said a more sustainable system would shift that role toward participants hedging real-world risk, aligning incentives with long-term utility instead of speculation.
Buterin also criticized the crypto industry’s focus on USD-pegged stablecoins. “What do people… want? They want price stability,” he wrote, arguing that reliance on dollar-backed assets limits true decentralization.
His proposed alternative replaces traditional currency with personalized portfolios of prediction-market positions tied to future expenses.
“Now, we do not need fiat currency at all,” he said, outlining a system where users hold growth assets like ETH or stocks, alongside tailored hedges for stability.
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In Buterin’s vision, AI tools such as LLMs would analyze spending patterns and automatically allocate positions across markets tied to goods, services, and regional costs.
Markets would be denominated in yield-bearing assets, such as tokenized stocks or interest-bearing fiat equivalents, to address opportunity costs.
On his X post, he closed with a direct call to builders: “Build the next generation of finance, not corposlop.”
Not everyone shares Buterin’s optimism. Kennyhertz Perry Partner Braden Perry, who specializes in financial regulation, said the biggest barrier to full-scale adoption of prediction markets “is not demand but regulatory certainty and coherence,” the Global Association of Risk Professionals reported in February.
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Perry reportedly said that the law around prediction markets is complex, as they sit at the intersection of derivatives law, gaming regulation, and financial market structure. He said, that until there’s a clear regulatory framework, platform growth will be uneven, and those currently participating face uncertain risks.
Despite recent Commodity Futures Trading Commission actions asserting exclusive jurisdiction, tensions between federal derivatives oversight and state gaming laws continue to create regulatory fragmentation. Litigation over preemption and scrutiny around insider trading add further hurdles.
Buterin argued that a hedging-based model would be more sustainable over time, as it could attract larger volumes of capital from participants seeking to manage real-world risk rather than speculate.
While concepts like prediction markets and tokenized assets are still evolving, many investors today continue to build portfolios using traditional assets like stocks and ETFs. Platforms like Public provide access to these markets, giving individuals a way to participate in long-term investing as financial systems continue to evolve.
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Building a resilient portfolio means thinking beyond a single asset or market trend. Economic cycles shift, sectors rise and fall, and no one investment performs well in every environment. That’s why many investors look to diversify with platforms that provide access to real estate, fixed-income opportunities, professional financial guidance, precious metals, and even self-directed retirement accounts. By spreading exposure across multiple asset classes, it becomes easier to manage risk, capture steady returns, and create long-term wealth that isn’t tied to the fortunes of just one company or industry.
Rad AI
Rad AI’s award-winning artificial intelligence technology helps transform data chaos into actionable insights, enabling the creation of high-performing content with measurable ROI. Their Regulation A+ offering allows investors to participate at $0.91 per share with a minimum investment of $1,000, providing an opportunity to diversify portfolios into early-stage AI innovation. For investors seeking exposure to the rapidly growing AI and tech sector, Rad AI offers a chance to get in on the ground floor of a data-driven growth story.
Metals.io
Metals.io is a digital investment platform that gives individuals direct, 24/7 access to a range of precious, rare earth, and strategic metals—including gold and uranium—through blockchain-powered tokenization. By representing physical metals as tradable tokens, the platform removes many of the traditional barriers associated with commodities investing, such as high minimums, limited trading hours, and reliance on intermediaries. Investors can buy, sell, and manage their holdings within a single, unified dashboard, with features like fractional ownership, real-time visibility, and globally accessible trading designed to make metals investing more flexible and accessible.
Paladin
Paladin Power is addressing the growing demand for energy independence with a fire-safe energy storage system that doesn’t rely on lithium-ion batteries. Instead, its ESS uses non-lithium, solid-state graphene battery technology designed for durability, safety, and long service life—positioning it as an alternative to fire-prone storage solutions that dominate today’s market. Since launching in 2023, Paladin has generated $185 million in contracted revenue, achieved strong year-over-year growth, and secured a manufacturing agreement with NYSE-listed Jabil. With systems already deployed across residential and commercial properties and a $500B global electrification market opportunity ahead, Paladin offers investors exposure to decentralized energy infrastructure backed by real contracts, U.S.-based manufacturing, and scalable next-generation technology.
Arrived
Backed by Jeff Bezos, Arrived Homes makes real estate investing accessible with a low barrier to entry. Investors can buy fractional shares of single-family rentals and vacation homes starting with as little as $100. This allows everyday investors to diversify into real estate, collect rental income, and build long-term wealth without needing to manage properties directly.
Masterworks
Masterworks enables investors to diversify into blue-chip art, an alternative asset class with historically low correlation to stocks and bonds. Through fractional ownership of museum-quality works by artists like Banksy, Basquiat, and Picasso, investors gain access without the high costs or complexities of owning art outright. With hundreds of offerings and strong historical exits on select works, Masterworks adds a scarce, globally traded asset to portfolios seeking long-term diversification.
Finance Advisors
Finance Advisors helps Americans approach retirement with greater clarity by connecting them to vetted, fiduciary financial advisors who specialize in tax-aware retirement planning. Rather than focusing on products or investment performance alone, the platform emphasizes strategies that account for after-tax income, withdrawal sequencing, and long-term tax efficiency—factors that can materially impact retirement outcomes. Free to use, Finance Advisors gives individuals with meaningful savings access to a level of planning sophistication historically reserved for high-net-worth households, helping reduce hidden tax risk and improve long-term financial confidence.
Public
Public is a multi-asset investing platform built for long-term investors who want more control, transparency, and innovation in how they grow wealth. Founded in 2019 as the first broker-dealer to offer commission-free, real-time fractional investing, Public now lets users invest in stocks, bonds, options, crypto, and more—all in one place. Its latest feature, Generated Assets, uses AI to turn a single idea into a fully customized, investable index that can be explained and backtested before committing capital. Combined with AI-powered research tools, clear explanations of market moves, and an uncapped 1% match for transferring an existing portfolio, Public positions itself as a modern platform designed to help serious investors make more informed decisions with context.
AdviserMatch
AdviserMatch is a free online tool that helps individuals connect with financial advisors based on their goals, financial situation, and investment needs. Instead of spending hours researching advisors on your own, the platform asks a few quick questions and matches you with professionals who can assist with areas like retirement planning, investment strategy, and overall financial guidance. Consultations are no-obligation, and services vary by advisor, giving investors a chance to explore whether professional advice could help improve their long-term financial plan.
EnergyX
EnergyX is a lithium extraction company focused on making production faster and more efficient with its LiTAS® technology, which can recover over 90% of lithium in just days instead of months. Backed by General Motors and a $5 million U.S. Department of Energy grant, the company controls extensive lithium acreage in Chile and the U.S. and is working to scale one of the largest lithium production facilities. Its goal is to help meet the rapidly growing global demand for lithium, a key resource for electric vehicles, consumer electronics, and large-scale energy storage.
Global Air Cylinder Wheels
GACW is an engineering startup developing the Air Suspension Wheel (ASW)—an airless mechanical wheel with built-in suspension designed to replace traditional rubber tires in heavy-duty applications. Initially targeting the $5 billion global mining tire market, the company says its technology can eliminate blowouts, reduce maintenance, and lower lifetime operating costs while also addressing environmental concerns tied to tire waste and microplastics. The patent-protected system is fully recyclable and designed to last the lifetime of the vehicle, with potential applications beyond mining. GACW plans to commercialize the technology in 2026 using a “Wheels as a Service” model that lets operators adopt the system without large upfront costs.
Bam Capital
BAM Capital offers accredited investors a way to diversify beyond public markets through institutional-grade multifamily real estate. With over $1.85 billion in completed transactions and guidance from Senior Economic Advisor Tony Landa, the firm targets income and long-term growth as supply tightens and renter demand remains strong—especially in Midwest markets. Its income-focused and growth-oriented funds provide exposure to real assets designed to be less tied to stock market volatility.
Atari
Atari is bringing its iconic legacy into the physical world with the launch of the first-ever Atari Hotel, a construction-ready gaming and entertainment destination in downtown Phoenix. The Atari Hotel Phoenix blends immersive gaming, live events, dining, and technology-driven experiences into a next-generation hospitality concept, backed by secured land, licensing, and development partners. Through a Regulation A+ offering, investors can own a direct stake in the land, building, and branded hotel starting at $500, with targeted returns including a 15% preferred return and a projected 5.8x multiple. As gaming and experiential travel continue to converge, this opportunity allows everyday investors to participate alongside developers in transforming a legendary brand into a real-world destination.
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