Topic: Bitcoiners kill Bitcoin, and governments are happy, boycott the CEXs - page 3. (Read 945 times)

There's that proof of keys day that should honestly be much bigger than it is, especially that there's a big exchange collapse almost every single year.

I'm not for boycotting CEXs because they offer a decent bridge between the banking system and cryptocurrencies, but people are using them the wrong way. They should always be used for fast transactions and nothing else. They're not banks, they're not your portfolio managers. They want to be because if you're dumb enough to hold money with them they'll make more money by loaning out your crypto, which is why they all offer those nice APIs where you see the total worth of your portfolio in real time, where you can stake, where you get new shitcoins for free... This is all there to make you stay. Don't fall for it!

It is easy to fall into the trap when you are new and do not understand wallet software to store on an exchange and then people just get trapped. They think they are safe because that is all they know and eventually they will hear about not your keys and not your coins but most people do not make the switch because they have not run into a problem yet and think it cannot happen to them. I stored Bitcoin on a CEX for many years before I realized that was a bad idea and I would say I am computer savvy so for the people who are not computer savvy that is a real problem.

You are right that we live in a centralized world, our banks, data, travel details are all held by government agencies. Bitcoin was created to free our financial matters from regulating bodies. A decade since its launch there is need felt for centralized exchanges  like the country where I live bitcoin is completely banned, there is only one way I can convert bitcoin to fiat and that's through centralized exchange like binance.
I know that's not what Bitcoin is created for but we have to consider the centralized aspect into consideration also.

I think you are correct in this statement you have made. Like I always say in my previous comments, that centralised exchange are the government regulatory arm that checkmates activities on blockchain via centralised exchange and they indirectly make us do kyc which requires us revealing our identity through uploading of means of identity via identity card issued by government, drivers license, international passport etc.which means they have their raider on us.
 They do this to monitor transactions and people behind the transactions and the nature of the transaction. Although the centralised exchange have their own benefit in as much as they do have disadvantages.

having fiat and wanting bitcoin usually means needing a fiat gateway to get bitcoin. hence the CEX convenience. but it should be taught by everyone introducing friends and family to crypto. only use CEX as a entry-exit gateway.. not a custody/bank
(coin in-coin out same day.. not hoard on exchange)


WTF are you on about

there was a price movement on november 11th. so thats what your price chart shows.. (ill come back to describing what that event was)

there was a balance drop soon after that..
in december, (today) by your chart shows 1.9m not your 2.35
your own chart shows that there was no balance of 2.35



now here is the thing. the bankruptcy of ftx/media hysteria of FTX was not in october.. it was november 11th

the peak of the green and orange lines was the november 6th-11th period of cz backing out of FTX(6th) and then whistleblowing and then on the 11th ftx filing bankruptcy

the price drop on november 11th WAS the FTX EVENT

october had 2.08, early november went to 2.12(call it nov 6th)
and then boom FTX drama. and the drop

price and coin, even in your chart has not gone above october levels

The whole world we live in is centralized, people use centralized systems every day, how do you now expect btc to remain decentralized?
This global adoption bitcoiners shout all the time, how is it going to be truly achieved with a decentralized system? i doubt anyone will be willing to live in a country with a decentralized system of government where most information will be hidden from the people, even the government official's identity will be private, and all operations will be private. exchanges are not the problem but people who use them as their personal wallets.
Perhaps we should have our views from both sides.

There is no Denial in that statment because centralized exchanges are getting shittier day by day but we also have to realize the fact there is no complete alternative there for centralized exchanges for now.

Yes, there are decentralized exchanges and p2p but the volumes are nowhere comparable so it stress the real cryptocurrency enthusiast who cares about privacy still have to go with shitty regulated exchange to buy their cryptocurrencies at fair price or else they have to compromise a lot to buy with complete anonymous in huge scale.

They do.
Yes, Bitcoin will survive, and I don't deny it, but Bitcoin is not the same compared to a few years ago, and totally different from what it was supposed to be. Let's say the Bitcoin's ideology is now a hybrid bitcoin's ideology

You admit what I was saying. People are too lazy to look around how truly works Bitcoin. So lazy that they don't want to handle their private keys themselves. If the volume on the centralized exchange is higher, that's again people are lazy.

Question: why to use a decentralized currency in a centralized circle?

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People are listening because the FTX scandal is happening. Once the story is over on the media and social medias, I'm pretty sure they will come back to their favorite CEXs. (Remember, they're too lazy).
While several companies will die, whatever if it's a CEX, mining companies, etc (and it's happening, see Core Scientist and others). Some others will survive and become more stronger, so with more monopoly, more influence on the bitcoin's industry, and more centralization.

Same question for you: why to use a decentralized currency in a centralized circle? Isn't it ironic?
#followthemoney #longlifetocapitalism.

ps: I believe your data is misleading perhaps. See what I mean Bitcoin Balances on Exchanges
30D/7D change, there isn't really a trend of people leaving exchange platform
On October 31 (before FTX so): 2.08M
On December 2021: 2.35M

In yellow the BTC's price. It seems related to the price and not any event happening during 2022. And we got quite a few.



So if it's more related to the price, we may argue people start to hodl theirs coins outside but still use the CEXs when they want to trade.
That's still the same problem, using centralized stuff..

Giving your KYC data to use a non-KYC currency... That's perhaps the best joke in this industry

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Fair, but the gamblers looking for a quick profit and here we can include individuals and companies bring the capitalism ideology.
The same thing we compain about with the traditionnal fincance, the same thing that make us switching to a decentralized currency.
Capitalism is the cancer in the finance/economy

"How are we supposed to deal with criminals, terrorists, money launderers, etc. who are abusing the same privacy that we so much crave for their own illicit activities?"

Nothing much. They're not able to do it properly with fiats, why they could be better with cryptos?
Wasn't Bitcoin supposed to be (pseudo) anonymous, giving financial freedom, with nobody blocking you etc?

Question: why to use a decentralized currency in a centralized circle?

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But they don't listen!
Places like BISQ, since @Wind_FURY talks about it, aren't difficult to use. How hard is to use Bisq? I'm sure a 10 years old children can use it after reading for some minutes.

"How are we supposed to deal with criminals, terrorists, money launderers, etc. who are abusing the same privacy that we so much crave for their own illicit activities?"

Nothing much. They're not able to do it properly with fiats, why they could be better with cryptos?
Wasn't Bitcoin supposed to be (pseudo) anonymous, giving financial freedom, with nobody blocking you etc?

Question: why to use a decentralized currency in a centralized circle?

We all have have made one costly mistakes that almost drain us but look at where we are today, at least we are recalcitrant to invest in most unpopular projects in the space that we don't have full required information about. CEX do have a positive change in the market but it's highly time to switch to a new heights and adapts for what yields profits. Everyone have their own choices to make, there's numerous people that still welcome the idea to use CEX but there are those that have no business concerning using CEX. We grow knowledge at certain stage in life as we're making mistakes, so as we are taking note on them.

There are speculators in every industry. It just so happens that speculation in the crypto industry is more hyped because the people talking about it either made extremely high returns on their crypto or they are bitter about not making any.

Fair enough. I was talking solely about trading bitcoin for fiat, since the vast majority of altcoins are scams. I would point out that if you are trading for some token on BSC or wrapped bitcoin or similar, then those coins/tokens are by nature completely centralized and can be seized from your wallet (any wallet) at any time. Trading them on a DEX brings little advantage since you have zero privacy or security with them anyway.

I don't think anyone can seriously claim that CEXs are in any way safe given the events of the past few months. There are few places riskier to send your coins to than a centralized exchange.

It doesn't matter what you were doing in the past. I think most of us here on this forum where using a CEX at one point or another, and, actually, it was a good thing for BTC during all those years. What matters is that you are not using it now, and you even try to convince your friends to follow your example.

Totally agree with OP. Let's boycott the CEXs from now on. They did a good job in the past, but it's time to move on. Let's not be the killers of what we love and value.

I can assure you that there were many scandals already 10 years ago, and will be the same in 10 more years. As long as there are new people in crypto every day then this will not stop. Still things get a little bit better from year to year, even if you don't see it.

In the case of branches, the less convenient part may also be true. When I use binance, I can trade many currencies, and they are legal, and when I trade on PancakeSwapper, I only trade commodities like BSC, or I use their hacked versions that are difficult to convert into cash. , and in Binance I can withdraw money in fiat form within 5 minutes from my bank account.  I think we should play now “sambad lottery ” from Nagaland state govt, instead of investing in bitcoin.  because govt is already taking steps to legalize it and take out their own currencies.

When you used to compare things together, it would have been a bit difficult and you would have understood the difference and reason for sure. There is no need to research the situation because DEX is still good, I am just saying that some people think like this.

I see CEXs very useful because it's the easiest and safest way to buy bitcoins, the problem occurs only when people start using them as wallets. They are called exchanges for a reason. If people would use them the way they are supposed to be used then we'd have way less problems.

bitcoins peer-to-peer network does as advertised.
.. disclaimer 'once you are funded in the network, and transacting in the network'

 however the offramps and onramps to get funded in the network. thats a whole different system not described in the whitepaper or experienced in the real world

yes we should prefer hand to hand paper fiat for bitcoin to on-ramp into bitcoin for the buyer and off ramp for the seller.

yes people should be doing the "disruptive technology" models of creating new business or systems that bypass the institutional services more

but for each extra bump in the road to get people away from institutional services the harder it gets (at current experience)

EG needing to go to a ATM only in business hours to then find someone you dont know at a coffee shop to do a face to face paper fiat for bitcoin trade. is more hassle than just doing a 3minute verified wire transfer into a CEX any time of the day or night for free, while at home sipping a whisky on your online bank account

so convenience takes over

bitcoin 2009-2014 was not recognise as a currency. it was deemed a property(and legally rightfully so) this meant that regulators and institutions couldnt get their paws on the gateways to bitcoin. meaning disruptive technologies of 'payment gateways' could.

however since being defined as a currency in 2014. bitcoin allowed in institutional services to facilitate the convenience ramps in and out.

then when deemed a security in 2017(asset) SEC ramped up its over reaching jurisdictional rules of the ramps in and out

then this year deeming bitcoin a commodity even more regulators can get involved. including the EPA(environmental protections agency) (yep EPA= the PoW/PoS wars of bitcoins future roadmap)

It is not only the issue but also the way people or us, using Bitcoin, of our own likeness. As mentioned in the whitepaper, Bitcoin should be used as a decentralized peer to peer transaction without the use of any financial institution. But if you would observe, Bitcoin is being more used as an asset. Most people would hesitate using it as a mode of payment because of profit concerns related to its market volatility. That is already where hypocrissy exist. People complain about issues, how governments are not using this technology and such, but we are guilty of our own ways. Many of us are pushing governments to adopt this technology but only a few has plans of really using this technology based on its true concept. So yes, I agree that we are ones who are killing this technology.

Not all CEXs are a scam. But, it's definitely not one of the best places you could keep your funds. If you keep money there, it is well advised that you don't store large amounts. While CEX offers excellent liquidity, you're better off storing funds in an offline wallet.

I think that people think that centralized exchanges are more convenient because it is something they are used to. These exchanges typically function in a similar way to traditional stock exchanges, with users able to place buy and sell orders and the exchange matching buyers and sellers. Centralized exchanges are often seen as convenient because they offer a wide range of features and services, including support for multiple cryptocurrencies, advanced trading tools, and fiat currency support. In contrast, decentralized exchanges may not offer the same level of convenience and features as centralized exchanges, and they may have lower liquidity.

It's not about blindness, it's more about greed, lack of understanding properly what they see and also impatience.
People want to get money - fiat money - very fast, as much as possible. They don't understand all these details, they don't even care about them. Heck, they don't understand nor care about bitcoin either! Of course then that way too many want a "bitcoin account", no matter that this means an account in a CEX that may fail tomorrow. All they want is to get fast to a little slice of this pie.

Yes, bitcoiners too make the mistake of using CEX sometimes. But that's a different story and the scale is smaller. There the problems might start with poorer countries and less options available and continue with the (bad) habits and laziness. Still, I think that this happens at a rather small scale.


You've just proven my point. So many coins. Greed*. I am almost sure you don't know well enough most of those. Because if you'd know, you'd notice that those "so many coins" are just a distraction, just a curtain of smoke preventing you see what makes sense to follow and what not. But why do that when you can trade/gamble between a lot of interesting names, hoping to get some easy money?
(* Please don't get offended, everybody is greedy to a certain point; of course, including myself.)

The less convenient part could also be true when it comes to chains. When I am using binance I can trade so many coins, and they are legit ones, whereas when I am trading on pancakeswap, either I trade the things only on BSC, or I use the wrapped version of them which is hard to turn into cash, whereas in Binance I can withdraw money to my bank account in fiat form within 5 minutes.

When you compare these things together then it becomes a bit harder and I understand the difference and the reason behind it for sure. It is not a situation that needs to be figured out because DEX is still better, I am just saying why some people think like that.