We currently decide the outcomes of the bets. so the oracle is the Bitcoin Prediction Market team. We're looking to decentralize this by using ecash mints to enable anyone to run their own prediction market, ask questions, and provide liquidity.

The issue with a fully decentralized p2p prediction market is then you can't use something like LMSR (or at least I currently don't know how you'd architect that kind of solution). The point of the prediction market is to centralize liquidity around a market maker, which can use those bets to forecast the future. If all the bets are p2p, then you can't gather that intelligence, which is a major drawback.