That's the easiest thing to build, coming from a world of traditional fiat money banking. But BTC enables something superior - 2of3 transactions between betters. We create a 3 way transaction - Long says "I want the money". Short says "I want the money". When the bet is concluded the arbitrator says "Long won, give me 1%."
The arbitrator can never go insolvent - in fact, the arbitrator never needs to hold a single bitcoin.
One suggestion: two-factor authentication. After so many hacks, 2FA should be available on any site that holds users' bitcoin.
2. I won't send bitcoin to a site that can't prove it controls the keys for 100% of customer deposits.
3. Obama vs. Romney?
2. Reliability and trust are big things to us. How would you suggest we implement this to show customers?
3. 2016? Not sure I'd be betting on either there...
