Vitalik: The advantage of prediction markets is that incorrect judgments will lead to losses, while accuracy may exceed media.

Foresight News reports that Ethereum co-founder Vitalik Buterin responded to discussions regarding “prediction markets” by stating, “In token voting, if you vote for the wrong option, you won’t face any punishment except for a very small chance that you might be the one who flips the result. However, in prediction markets, if you make a wrong judgment, you will lose money; if you place a large bet on a wrong judgment, you will lose a lot of money. I personally 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 recognizing when significant events actually occur).”