According to VitalikButerin, the concept of nonlinearity in utility functions for money is crucial when considering betting scenarios. He compares this to betting with lottery tickets, where the chance of winning $1M is X/10^6, suggesting that the perceived value of money changes with the context of the bet.

According to Vitalik Buterin, the concept of nonlinearity in utility functions in monetary contexts is more relevant to betting scenarios than simply distinguishing between 'preference' and 'better'. He uses the example of betting in lottery tickets with a minuscule chance of winning $1 million to illustrate this point.