If centralized cryptocurrency exchanges cease to exist, this may lead to a decrease in liquidity in the cryptocurrency market and complicate the ability to exchange between fiat and cryptocurrency funds. This can reduce the demand for cryptocurrency and reduce its value. However, the cryptocurrency was created as a decentralized system, so the existence of centralized exchanges is not necessary for its functioning.
Moreover, there may be more innovative and secure ways to exchange cryptocurrencies between people, such as decentralized exchanges (DEX) or other technologies that allow the exchange of cryptocurrencies directly without the participation of centralized exchanges.
Topic: A crypto world without CEXs...How would it be? - page 3. (Read 415 times)
While it's true that the crypto world would still exist without centralized exchanges (CEX), the lack of government support could impact the future growth potential of cryptocurrency as an investment. Evading government regulations and expecting complete anonymity is not a realistic expectation, as most cryptocurrencies have become centralized in some way. Governments are also working to regulate the crypto market, which could impact the anonymity of certain cryptocurrencies.
Ultimately, cryptocurrency has become an alternative currency that uses decentralized ledger technology, but it's important to be aware of the evolving regulatory landscape and the potential impact on investments.
People who shout out loud that crypto promotes anonymity have no idea what is happening in the world right now. This is because anonymity can only be achieved if you do not convert your Bitcoin into fiat.
Ultimately, cryptocurrency has become an alternative currency that uses decentralized ledger technology, but it's important to be aware of the evolving regulatory landscape and the potential impact on investments.
People who shout out loud that crypto promotes anonymity have no idea what is happening in the world right now. This is because anonymity can only be achieved if you do not convert your Bitcoin into fiat.
Even if regulations become stricter, I believe it's crucial to protect and increase the value of our crypto assets. That's why I rely on XGo's wallet, which offers daily interest on my assets with no charges.
It is very true that CEX has a very important role in the growth of crypto today. the fall of CEX will do fatal damage to crypto, in fact most of the public's trust may be reduced if CEX has been deemed illegal by the government. this will probably bring about the collapse of the crypto empire.
However, if crypto survives, then DEX will be the first choice in exchanges. besides that, P2P can also be an option, but it takes a lot of trust to make large transactions. The scenario I'm thinking of is, DEXs might be vying for the trust of crypto users and trying to replace CEXs. but still that big losses for crypto will still occur, especially those who focus on trading or futures on CEX, they will definitely lose faith in using crypto.
However, if crypto survives, then DEX will be the first choice in exchanges. besides that, P2P can also be an option, but it takes a lot of trust to make large transactions. The scenario I'm thinking of is, DEXs might be vying for the trust of crypto users and trying to replace CEXs. but still that big losses for crypto will still occur, especially those who focus on trading or futures on CEX, they will definitely lose faith in using crypto.
Centralized exchanges are one of the biggest contributors to the cryptocurrency market. But without centralized exchanges, crypto trading would be decentralized, which could have several implications for the industry. For trading and investing in cryptocurrencies, the ecosystem will become more experimental and possibly more flexible.
Total trading volume on centralized exchanges is bigger than total trading volume on decentralized exchanges. However, they won't kill each other but will exist together. People will move their funds from CEXs to DEXs and with fear of losing money on CEXs by blackswan events, they always have reasons to keep part of their funds on self-custodial wallets which are available to use anytime on DEXs.Well we would lose those institutional investors we wanted to get in for so long. At your scenario there wouldn't be instant ban, as laws don't move as quickly we would have some time to prepare. But that prepariing would most likely be massive panic and people would try to escape out before fiat pairs would be banned.
The USA. tries to restricts as much as possible against cryptocurrency companies, banks support cryptocurrencies as they are reviving Operation Choke Point after its previous failure enforcement in Obama time.I don't believe US. congress and US. citizens will allow their government to ban cryptocurrency completely. That is a free nation and the voice of their citizens has its power.
Institutional investors/VCs are the ones keeping the crypto market afloat. Without CEXs, they will simply go away. This means that most of the money being poured into crypto assets right now, will vanish in an instant.
The cryptocurrency market is still young and very small (in its total marketcap) compares to traditional markets. I am sure if no serious regulations like you imagined happen, more institutional investors will join this market. Their new capital flow pours into this market will help it soars a lot in future. 
Well we would lose those institutional investors we wanted to get in for so long. At your scenario there wouldn't be instant ban, as laws don't move as quickly we would have some time to prepare. But that prepariing would most likely be massive panic and people would try to escape out before fiat pairs would be banned.
This would lead to lack of liquidity and total price crash. Most likely lots of people would even short it with leverage. I could see we might go back to 2013-2014 prices. As that what was happening before legit investors came. There were few big whales but it was a joke compared to current markets.
In the end we would be coming back to roots. People trading p2p, hard to say how many people would do that but it would be way harder and charts wouldn't really exist as they are now.
Some people would keep trading altcoin pairs (not stable coins tho). This would totally be a nerd and geek game after that. Some might think it would be a step up.
This would lead to lack of liquidity and total price crash. Most likely lots of people would even short it with leverage. I could see we might go back to 2013-2014 prices. As that what was happening before legit investors came. There were few big whales but it was a joke compared to current markets.
In the end we would be coming back to roots. People trading p2p, hard to say how many people would do that but it would be way harder and charts wouldn't really exist as they are now.
Some people would keep trading altcoin pairs (not stable coins tho). This would totally be a nerd and geek game after that. Some might think it would be a step up.
Institutional investors/VCs are the ones keeping the crypto market afloat. Without CEXs, they will simply go away. This means that most of the money being poured into crypto assets right now, will vanish in an instant. Bitcoin will decline massively in price, as well as, altcoins. There will still be a way to trade crypto (P2P, DEX, etc), but I doubt the majority of the people will do the switch when such solutions aren't as user-friendly as an ordinary CEX.
At least, truly-decentralized cryptocurrencies won't be going anywhere soon. The odds of a "full blanket ban" are slim, so there should be no reason to worry about CEXs disappearing anytime soon. Maybe restrictive countries like the US, China, and Russia will come to their senses soon? Just my thoughts
Centralized exchanges are one of the biggest contributors to the cryptocurrency market. But without centralized exchanges, crypto trading would be decentralized, which could have several implications for the industry. For trading and investing in cryptocurrencies, the ecosystem will become more experimental and possibly more flexible.
the volume and market capitalization definitely aren't gonna be this big, these cexes always give convenience for those that just want to invest, like majority of people, we just wanna invest and thats it, these cexes are already good enough for that, meanwhile with dexes you could see their are lacking the volume, there's reason many thinks cexes better but I guess everyone have their own preference.
Will a world without CEXs mark the end of crypto? I know crypto is decentralized, but the truth is that CEXs provide most of the liquidity of the market. DEXs are "second-hand" options that have their own set of issues. ...
As long as the DEX has a big reputation, it will be still the last longer But, I don't think this will happen at least in this era, because CEX still becomes one of the most used exchanges or platforms to trust. Although it has some down sides. but this still be a good choice with high reputation. Moreover, in local exchanges, they must be the ones that are regulated under the law of the government in the country and this becomes the exchanges that are trusted so much because of registered in the country. But once more, CEX may be like banks, it is centralized and sometimes, we need the DEX for more privacy. SO, many people are also using DEXs for transactions again. I think both uses of CEX and DEX have its own advantages and disadvantages. That is why if someday CEX is no longer operated, I am sure that people will switch to DEX that has high reputation in order to choose more secure transactions. If major countries around the world decide to reject crypto/Blockchain tech sometime in the future, there's a high probability CEXs (centralized exchanges) will cease to exist. They will shut down their operations as crypto is declared "illegal" for mainstream use. Without an on/off ramp to/from the Fiat and crypto worlds, I wonder how would the industry survive?
Will a world without CEXs mark the end of crypto? I know crypto is decentralized, but the truth is that CEXs provide most of the liquidity of the market. DEXs are "second-hand" options that have their own set of issues. Either mainstream adoption for crypto/Blockchain tech starts to decline, or all the other way around. We've seen how exchanges have been "closing up shop" in the US due to strict regulations. What makes you think other countries will tighten regulations especially when they claim crypto can be used to avoid sanctions?
Your input would be greatly appreciated. Thank you very much.
This is incredibly unlikely to happen, even if most countries around the world were to ban cryptocurrencies and they went against centralized exchanges, there will always be a few countries out there which will see this as an opportunity they can use to make a lot of money and pass very favorable laws towards cryptocurrencies and centralized exchanges, and in that case centralized exchanges like binance will just move their operations there. Will a world without CEXs mark the end of crypto? I know crypto is decentralized, but the truth is that CEXs provide most of the liquidity of the market. DEXs are "second-hand" options that have their own set of issues. Either mainstream adoption for crypto/Blockchain tech starts to decline, or all the other way around. We've seen how exchanges have been "closing up shop" in the US due to strict regulations. What makes you think other countries will tighten regulations especially when they claim crypto can be used to avoid sanctions?
Your input would be greatly appreciated. Thank you very much.
I think we'll find a way, like we always do. For years, crypto has faced challenges from many parties, but we're still here to survive and thrive. Beside, at the beginning, crypto was meant to be decentralized, so it is actually all about P2P trading and, later, DEXs. Although there is no doubt that CEXs played a significant role in the development of crypto, If major countries reject crypto and blockchain technology, there could be a risk of CEXs shutting down their operations, but the crypto industry is not solely dependent on CEXs. With the massive development of crypto and how big the industry became, I think many countries will also think twice before banning it; they probably will regulate it instead. By doing so, CEXs could then adapt to the regulations and survive.
What way? There is still DEX, hellow? And DEX was in fact the best and should be use the most by people because this symbolizes the true purpose of cryptos not CEX as it pushes centralization which are opposed to the main objective of cryptos. CEX will only be affected if it was established on the same country who banned crypto but if not then they can run fine though they will only remove the banned countries from their supported list.It can still affect their income. Some countries don't really care about the achievement of crypto or if how big it was already but they only think about themselves. They will still ban cryptos no matter what.
Although this is an unlikely scenario, but something tells me that centralized services will always be popular, whatever the weather on the crypto market. People themselves are very often lazy and do not want to manage their assets themselves, do not want to learn the basics of decentralization, it is easier for them to trust some third party to quickly solve all their problems and to make cryptocurrency transfer operations as easy and convenient as possible. People always choose convenience over security, otherwise centralized services would have disappeared long ago.
We have no choice but to adopt and make the best out of it.
CEX are being regulated so there’s a higher chance for them to being restricted, so far we are lucky to have countries accepting Bitcoin as a legal tender, at least that could be a safer place for CEX to operate if ever. Having no CEX around can limit people from transacting that much with cryptocurrency, we might be back to a slower era.
CEX are being regulated so there’s a higher chance for them to being restricted, so far we are lucky to have countries accepting Bitcoin as a legal tender, at least that could be a safer place for CEX to operate if ever. Having no CEX around can limit people from transacting that much with cryptocurrency, we might be back to a slower era.
CEX helps to give more liquidity to most of the cryptocurrencies out there but the only problem is the regulations and restrictions of the world government against it. we just need to be thankful that despite all of this, some countries won't ban it as long as they pay the amount of taxes that they need to pay in that country. That alone is huge progress compared to past years' experience with bitcoins and altcoins. Also, some big companies are already putting some effort into innovating their services to adopt cryptocurrencies as their accepted and offered payment. To be honest, it's hard to think at least for a newbie like me how it would be if there will be no CEX anymore today.
Cryptocurrencies survived without CEX, but I doubt CEX will survive without cryptocurrencies. What will they trade? Nothing.
Oh, and survive means it exists even though the value was low just like Bitcoin and Ethereum prices back when all we can use was the DEX.
One of the popular exchanges may have closed but the value remains, actually better because the value of Bitcoin suddenly rose.
That should mean something, it doesn't really rely on the massive amount of CEX that had been opening, it just needs one good exchange and another for competition and it will still survive or increase its market price.
I know the thread might be because of Binance being sued but I doubt they can take them down easily.
Oh, and survive means it exists even though the value was low just like Bitcoin and Ethereum prices back when all we can use was the DEX.
One of the popular exchanges may have closed but the value remains, actually better because the value of Bitcoin suddenly rose.
That should mean something, it doesn't really rely on the massive amount of CEX that had been opening, it just needs one good exchange and another for competition and it will still survive or increase its market price.
I know the thread might be because of Binance being sued but I doubt they can take them down easily.
We're certainly going to lose a lot of current users, that's for sure, but at the same time, I reckon it would create a stable balance since there wouldn't be much influx of new users anymore. At the same time though, its usability will be severely limited since it'd only be accepted by fellow crypto users, which I do hope would be countered by the creation of a solid network for fellow crypto users. Kind of like a hub, an online hub of sorts. I'd say there's a lot more cons than pros in general though.
On a very positive note though, we can finally see the stop of the creation of thousands of shitcoins every day!
On a very positive note though, we can finally see the stop of the creation of thousands of shitcoins every day!
CEXs,are already a pain in the a** for all the people who have been dealing with crypto since early on when they were created as we all know decentralization was the key point that made Bitcoin so popular together with the public ledger that we know as blockchain to come next.
Now if these exchanges stop their operations I am sure we will see something like immediate conversion service like Shapeshift.io if I remember the service correctly.Then to exchange to money,to FIAT we can use direct exchanges like the one anyone can find on bestchange.com website.Bottom line is we will survive and find a way always.
Now if these exchanges stop their operations I am sure we will see something like immediate conversion service like Shapeshift.io if I remember the service correctly.Then to exchange to money,to FIAT we can use direct exchanges like the one anyone can find on bestchange.com website.Bottom line is we will survive and find a way always.
IMO, if there is no CEX in the crypto market, it can cause difficulties and risks for users, however, the crypto community will have to look for other solutions to support the exchange. exchange and trade cryptocurrencies to ensure transparency and safety. Buying and selling cryptocurrencies will become more difficult and may lead to a lack of liquidity in the market. This can make the value of cryptocurrency vulnerable to major events such as news, announcements from crypto projects, etc.
Once government confirm and realizes the idea of bitcoin and crypto of being illegal then definitely will go to being decentralized and merchants and estabkishment that accept crypto will force to shut their door accepting crypto payment. Its really a gamble since some need fiag and how does someone will get fiat money if no one in interested to buy crypto? Some says cex is useless but the truth is we cant change the fact that time is changing and we need it. Some might be comfortable on doing p2p via decentralized way however what if we dont have buyers anymore of crypto due to that reason?
I think we'll find a way, like we always do. For years, crypto has faced challenges from many parties, but we're still here to survive and thrive. Beside, at the beginning, crypto was meant to be decentralized, so it is actually all about P2P trading and, later, DEXs. Although there is no doubt that CEXs played a significant role in the development of crypto, If major countries reject crypto and blockchain technology, there could be a risk of CEXs shutting down their operations, but the crypto industry is not solely dependent on CEXs. With the massive development of crypto and how big the industry became, I think many countries will also think twice before banning it; they probably will regulate it instead. By doing so, CEXs could then adapt to the regulations and survive.
If major countries around the world decide to reject crypto/Blockchain tech sometime in the future, there's a high probability CEXs (centralized exchanges) will cease to exist. They will shut down their operations as crypto is declared "illegal" for mainstream use. Without an on/off ramp to/from the Fiat and crypto worlds, I wonder how would the industry survive?
The world has black and white, right and wrong, legal and illegal activities and all of them are parts of the world. You can not have black without white, right without wrong and so on. I believe legal and illegal activities will continue to exist in societies and no government can ban all illegal things, prevent such occur in their nations completely.Quote
Will a world without CEXs mark the end of crypto?
If governments allow gambling, they will allow CEX but maybe with more conditions to have license for CEX operations.Quote
I know crypto is decentralized, but the truth is that CEXs provide most of the liquidity of the market. DEXs are "second-hand" options that have their own set of issues. Either mainstream adoption for crypto/Blockchain tech starts to decline, or all the other way around. We've seen how exchanges have been "closing up shop" in the US due to strict regulations. What makes you think other countries will tighten regulations especially when they claim crypto can be used to avoid sanctions
CEXs and DEXs give us more options in cryptocurrency market but not all of us only use CEX or only use DEX. Most of us use CEXs and DEXs in trading and this fact and demand from users provide opportunities for both exchange types to exist in future. Jump to: