How to Protect Bettors from Themselves

Betting with no productive purpose can ruin lives, which is why governments across the globe have generally banned or restricted betting not connected with the production of something useful.

Betting for productive purposes can’t be outlawed because uncertainty is a fundamental aspect of reality. We have no choice but to make bets, that is, to risk resources on uncertain outcomes in the pursuit of some gain.

BetBacked enables betting for a new, productive purpose: evaluating the veracity of public speech. Yet, the platform is dangerous if users – bet speakers – can risk their life savings. That raises the question, can bets on BetBacked be made safe, while still enabling them to be effective speech?

The answer is yes, in theory, with software-enforced rules that limit risk. Such rules can include, for example, requiring that bet speakers apply for a betting limit, like a credit limit, tied to net worth and income. If a bet speaker loses his limit, a smaller limit can be approved, which can get progressively smaller each time he loses that new limit. Rules like these can almost entirely eliminate a bet speaker’s risk of ruin. Still, the bet offers that he makes will usually remain meaningful.

Most Bet Offers Will Involve Little Risk

Regarding the danger of the platform, it should be noted that a unique aspect of BetBacked, as a peer-to-peer betting platform, is that most bet offers are not meant to be accepted; they’re not meant to transact. Most bet offers will be nearly sure thing offers, stacked in a bet speaker’s favor, and made to support a fair statement or attack a misleading one. For instance, a doctor might offer to bet $2,000 that a bogus claim on a quack medicine site is MISLEADING. When bet speakers make offers that are stacked in their favor, those offers usually won’t be accepted, and therefore, will involve little to no risk.

Funds and Organizations May Be Bet Speakers

If BetBacked becomes popular, investment funds will arise to bet against misleading statements and in support of fair ones. Bet offers by these bet speakers will not endanger individuals. Likewise, organizations of all kinds will become bet speakers. Their bet offers generally will not endanger individuals either.