Topic: Centralized Exchanges are against Crypto (Read 109 times)
You are right that the bitcoin philosophy is for identies to transactions be hidden but as for exchanges, we see that some decentralized exchanges also require some KYC before you can withdraw a certain amount with the excuse of ensuring the transaction isn't illegal or that you are the beneficiary of the transaction. This is same thing with fiat transaction where it is third party. So, it is a choice.
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eXch.cx - Automatic crypto Swap Exchange.
There are other disadvantage associated with centralized exchanges that are within the control of this exchanges to resolve but they have refused to tackle those disadvantage therefore making them a threat to the growth of the cryptocurrency industry. The hacking disadvantage isn't just an issue with centralized exchanges as the "supposedly" decentralized exchange also get hack. The DEX aren't helping matters as currently there isn't any out there decentralized and secured enough for me to encourage others to patronize.
We have seen scenario where the "supposedly" decentralized exchanges are getting hacked and enforcing KYC requirements on customers before they can access their funds also in some cases restricting access to users from certain regions which shouldn't be possible if these exchanges were decentralized as they claim. The centralized exchanges serve as escrow so until the decentralized ones can step up their games, yes we still need them but you should never used them as platforms to store your coins.
We have seen scenario where the "supposedly" decentralized exchanges are getting hacked and enforcing KYC requirements on customers before they can access their funds also in some cases restricting access to users from certain regions which shouldn't be possible if these exchanges were decentralized as they claim. The centralized exchanges serve as escrow so until the decentralized ones can step up their games, yes we still need them but you should never used them as platforms to store your coins.
Most probably normal users don't need centralized exchanges. But it's not (only) us who feed them and help them become this big.
It's the (day) traders. It's the bot owners. It's those who make thousands or millions of trades every day, buying, selling, buying again and selling again. Those do care if they pay the 0.2% or 0.1% or less. Actually the fee structure also favors them. And they don't have to pay transaction fees or anything (OK, they do pay, but 1-2 deposits/withdrawals don't compete with 1000s of trades), since everything happens inside the centralized exchange.
It's the (day) traders. It's the bot owners. It's those who make thousands or millions of trades every day, buying, selling, buying again and selling again. Those do care if they pay the 0.2% or 0.1% or less. Actually the fee structure also favors them. And they don't have to pay transaction fees or anything (OK, they do pay, but 1-2 deposits/withdrawals don't compete with 1000s of trades), since everything happens inside the centralized exchange.
There are many centralized exchanges here which have suffered many hacking attempts which resulted in loss of millions of dollars.
Point is that do we need centralized exchanges? Isn't that against the bitcoin philosophy as Bitcoin was created to get rid of Centralization. All of this is just centralization.
Point is that do we need centralized exchanges? Isn't that against the bitcoin philosophy as Bitcoin was created to get rid of Centralization. All of this is just centralization.
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