Are exchanges causing too much centralization? - page 2.

QuestionAuthority

legendary

Activity: 2156

Merit: 1393

You lead and I'll watch you walk away.

Quote from: figmentofmyass on January 09, 2018, 06:13:59 PM

Quote from: QuestionAuthority on January 09, 2018, 01:19:16 PM

Bitcoin only works as advertised when there are no exchanges.

You make something and sell it for bitcoin. You take the bitcoin and buy the supplies to make more of what you sell and pay your bills in bitcoin with your profit. That’s the way an economy works. Bitcoin has no economy because of the exchanges.

The minute someone buys a product with bitcoin, BitPay exchanges it for dollars and deposits the dollars in the sellers account. That’s the way to keep the dollar economy going, not the way to build a bitcoin economy.

The problem is, no one really wants bitcoin to work as advertised. No one cares if they can perform a financial transaction without the need for a trusted third party. All any of the worthless fuckers using bitcoin right now care about is getting rich in dollars. Centralized exchanges are necessary for getting rich in dollars. They will always be around.

i think this sort of price speculation is natural. we see it with other technologies (via the companies building them). investors are speculating on future development and utility. bitcoin's ecosystem is rather undeveloped. it could never be self-sustaining at this point, especially since it's inefficient to use for everyday transactions. the actualization of a scalable network ready for mainstream adoption is still very far away.

and yes, the exchanges are never going away. but remember, exchanges and futures markets arose for all commodities (including food/agriculture commodities) for a reason. not just to get rich. the market needs price discovery, and producers need to hedge.

Read all the posted links in this thread and you’ll see that this isn’t natural.

https://bitcointalksearch.org/topic/m.27666147

emuLOAD

sr. member

Activity: 328

Merit: 252

It's obvious that if a service that people find useful comes online, demand and ability to satisfy demand increase, pushing Exchange price up.

This is nothing wrong or against the concept of decentralization. Exchanges are indeed centralized and non "ideologically in-line" with the concept of pure decentralization, however I think there is a misconception of what decentralized means.

Mining pools, staking pools, mining farms, investment groups, payment processors... everything that offers a service through an own-Platform will be centralizing the portion of actions that they service, this doesn't centralize bitcoin. The ideal that BTC should be autonomous and impervious to services provided is absurd.

figmentofmyass

legendary

Activity: 1652

Merit: 1483

Quote from: QuestionAuthority on January 09, 2018, 01:19:16 PM

Bitcoin only works as advertised when there are no exchanges.

You make something and sell it for bitcoin. You take the bitcoin and buy the supplies to make more of what you sell and pay your bills in bitcoin with your profit. That’s the way an economy works. Bitcoin has no economy because of the exchanges.

The minute someone buys a product with bitcoin, BitPay exchanges it for dollars and deposits the dollars in the sellers account. That’s the way to keep the dollar economy going, not the way to build a bitcoin economy.

The problem is, no one really wants bitcoin to work as advertised. No one cares if they can perform a financial transaction without the need for a trusted third party. All any of the worthless fuckers using bitcoin right now care about is getting rich in dollars. Centralized exchanges are necessary for getting rich in dollars. They will always be around.

i think this sort of price speculation is natural. we see it with other technologies (via the companies building them). investors are speculating on future development and utility. bitcoin's ecosystem is rather undeveloped. it could never be self-sustaining at this point, especially since it's inefficient to use for everyday transactions. the actualization of a scalable network ready for mainstream adoption is still very far away.

and yes, the exchanges are never going away. but remember, exchanges and futures markets arose for all commodities (including food/agriculture commodities) for a reason. not just to get rich. the market needs price discovery, and producers need to hedge.

bribed

full member

Activity: 238

Merit: 100

Yes indeed, this is a major problem in the cryptocurrency space. The exchanges force people who seek decentralization into a centralized system again. The major problem of this is the power that the exchanges are given, this is like an incentivization to do some shady stuff, as most exchanges around do, no doubt about that.
Im totally into decentralized exchanges and the benefits that those bring to people. Really looking forward for them to take the centralized ones out of business, rather sooner than later! Another great thing is the atomic swap, but this is still next level. But it will come!

poor-yorik

newbie

Activity: 56

Merit: 0

Quote from: Playerino on January 09, 2018, 12:22:39 PM

Hi all. New here. Bitcoin was created with an underlying concept of decentralization. It was hard to convert dollars and other currencies into bitcoins, so exchanges were born, but now, if Coinbase adds a new cryptocurrency to the platform, prices for the cryptocurrency goes up? That's not cool. Too much power. Coinbase and others are becoming these huge businesses that in my opinion should never exist. How do we make exchanges obsolete? Thoughts?

You should look no further than decentralized exchanges. They can hypothetically make regular exchanges obsolete but there is still a long way ahead. There are some efforts to make it happen faster, I mean projects like BitShares or Waves but they are not very popular as of yet. Perhaps, their time simply hasn't yet come. We need to fix Bitcoin first.

ihaveaquestion

full member

Activity: 563

Merit: 101

The only centralization that they have, is just that you are going to put money in a place that they are asking you to provide all your information.. Id's, licenses, proof's of residence. That is why i am always looking for exchanges who are never requiring this, just like KuCoin.

cozk

hero member

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Merit: 500

Yes.

And most require your driver's license and passport. Wtf.. seriously

MiningSensei

hero member

Activity: 766

Merit: 509

Of course, the customers, the huge customers that they have, it is all a HUGE centralized system, it is just like another "blockchain" of customers and huge manipulation.

Quote from: fiulpro on January 09, 2018, 01:06:36 PM

Since they do have a lots of customers then for sure the price will go up with time and yes those big holders does make it a little centralized.

The first example of all this shit, is just what Coinbase did with Bitcoin cash; the incredible pump+advertising+and trying to bring the masses to that coin.

Quote from: fiulpro on January 09, 2018, 01:06:36 PM

The more bitcoins you have the more power you have over it but that's just how it works.

That is why i am always trying to avoid exchanges at all cost, they all are the same crap trying to do shady things to make their pocket's look bigger than what they were before.

QuestionAuthority

legendary

Activity: 2156

Merit: 1393

You lead and I'll watch you walk away.

Bitcoin only works as advertised when there are no exchanges.

You make something and sell it for bitcoin. You take the bitcoin and buy the supplies to make more of what you sell and pay your bills in bitcoin with your profit. That’s the way an economy works. Bitcoin has no economy because of the exchanges.

The minute someone buys a product with bitcoin, BitPay exchanges it for dollars and deposits the dollars in the sellers account. That’s the way to keep the dollar economy going, not the way to build a bitcoin economy.

The problem is, no one really wants bitcoin to work as advertised. No one cares if they can perform a financial transaction without the need for a trusted third party. All any of the worthless fuckers using bitcoin right now care about is getting rich in dollars. Centralized exchanges are necessary for getting rich in dollars. They will always be around.

fiulpro

hero member

Activity: 1890

Merit: 831

I do think that it's something thats inevitable because that's an essential part and without them the bitcoins economy can't function well.

Since they do have a lots of customers then for sure the price will go up with time and yes those big holders does make it a little centralized.

The more bitcoins you have the more power you have over it but that's just how it works.

bitorama

full member

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Merit: 100

that's why we need some decentralized exchanges

totnaksquad

member

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Merit: 10

Revolutionising Marketing and Loyalty

Quote from: Playerino on January 09, 2018, 12:22:39 PM

Hi all. New here. Bitcoin was created with an underlying concept of decentralization. It was hard to convert dollars and other currencies into bitcoins, so exchanges were born, but now, if Coinbase adds a new cryptocurrency to the platform, prices for the cryptocurrency goes up? That's not cool. Too much power. Coinbase and others are becoming these huge businesses that in my opinion should never exist. How do we make exchanges obsolete? Thoughts?

Because coinbase listing is a big impact for the users,coinbase is the based on u.s where financial institution like wallstreet and cme are there too.

Playerino

newbie

Activity: 3

Merit: 0

Hi all. New here. Bitcoin was created with an underlying concept of decentralization. It was hard to convert dollars and other currencies into bitcoins, so exchanges were born, but now, if Coinbase adds a new cryptocurrency to the platform, prices for the cryptocurrency goes up? That's not cool. Too much power. Coinbase and others are becoming these huge businesses that in my opinion should never exist. How do we make exchanges obsolete? Thoughts?

Topic: Are exchanges causing too much centralization? - page 2. (Read 306 times)