Vitalik Buterin Says Polymarket Isn’t Gambling Amid DeFi Discussion

Vitalik Buterin, Ethereum’s co-founder, has opposed the claims that Polymarket constitutes gambling. According to the blockchain expert, this belief marks a significant misunderstanding of the nature of prediction markets.

Polymarket Is Not Gambling, Buterin Says

Polymarket, for context, is the world’s largest prediction market, offering trading markets on the world’s most hotly debated topics, including political campaigns and elections. Many consider this to constitute gambling but Buterin begged to differ.

Putting Polymarket into the category of “gambling” is a massive misunderstanding of what prediction markets are or why people (incl economists and policy intellectuals) are excited about them.

Vitalik Buterin

Discussing the matter on X, the Ethereum co-founder, decentralized prediction markets are not correctly understood. He pointed out that they are not simply trading platforms but also a tool that allows visitors to gain insights into important events without having their opinions swayed by journalists and editors.

This, Buterin argued, is of special value. He noted that conditional prediction markets are even finding limited use in governance.

Stablecoins Contribute to the Global Economy

The discussion, for context, was prompted by an X user who suggested that users associate decentralized finance with “the 2021 farming craze ponzi schemes.” They argued that people may not understand the healthier applications of decentralized finance.

This is perhaps why ppl are confused that why Vitalik would be seemingly against DeFi but for gambling/prediction markets like Polymarket and a centralized stablecoin like USDC.  

Strobie reeeee, X user

Responding to the comment, Buterin noted that stablecoins have an increasingly important role in economic openness. The Ethereum co-founder said that he prefers decentralized options, such as RAI, but agreed that stablecoins are very convenient for international transactions.

We are here to try to make the global economy and society more open and free, and people in emerging markets using stablecoins to freely transact is a real live use case that’s happening everywhere.

Vitalik Buterin

Buterin admitted that he is still somewhat reserved about USDC but believes that it is a step in the right direction.