Topic: CEX ruins the true value of Bitcoin - page 2. (Read 722 times)
CEXs are pressurized by government to obey their rules and regulations what they provided. When you want to dealing fiat with crypto-currencies, government ask kyc otherwise that will be under money laundering sections. Even It'll be easy to trust CEXs when you know their identity. Besides file complain if you get scammed. Where it wont be easy for DEXs but it just gives facilities to trade & convert without kyc issue. Maybe later they make themself better for use
In that future, I'm very confident there will be more, and better BISQ-like decentralized exchanges implemented, and more peer to peer exchanges like LocalBitcoins/HodlHodl. Why? Because it they will be necessary for further development of Bitcoin. Exchanges becoming like banks is deteriorated development.
I absolutely hope as well that in the future we'll have several reliable DEXs, that would be the natural evolution of cryptos. At the same time I think CEXs will still have their market share because this world is going to be so big there everyone can have its own space. It's up to us deciding what to use depending on the situation because if someone wants to cash out, doing it through a regulated exchange with KYC approved for sure is going to be way more simple than simply getting some money from some unknown platform.
True DEXs, like BISQ, are open source projects licensed under a GPL-like license that makes the project "owned" by the community. If a lead developer leaves, another from the community can take his/her place, like Bitcoin when Satoshi left, or Linux if Linus Torvalds leaves.
Problems with Bisq is their low trading volume. So it reveals the fact that not much people actually care about privacy, anonymity and truly DEX. If they care about that, they will use true DEX like Bisq more and will contribute to make trading volume on it much higher.
It's still early ser, plus the current situation doesn't make it very necessary for most of the users to start using DEXs. It's simply not its time yet. But the glass should always be viewed half full. It's like Bitcoin, it's there when you truly need it, and when the situation makes it necessary.
True DEXs, like BISQ, are open source projects licensed under a GPL-like license that makes the project "owned" by the community. If a lead developer leaves, another from the community can take his/her place, like Bitcoin when Satoshi left, or Linux if Linus Torvalds leaves.
The sad part is that we are not really dealing with anything that is getting any better with the DEX in the world. They might be truly decentralized and I am not arguing against that but they are certainly not doing that well neither. I feel like we could definitely see tons of hacks towards decentralized places as well.I mean billions have been stolen from those places total, in many different chains and that should be enough to scare people. Doesn't mean that we shouldn't trust them, but if you do not trust CEX because it is centralized, doesn't that mean that you shouldn't trust the DEX places because they could get hacked as well?
I disagree with the OP on the opinion. Bitcoin is for everyone and there are many use cases for it, on DEX, on CEX, on Peer-to-Peer marketplace, gambling sites, etc. Nothing destroys the true value of Bitcoin. Together, they contribute to bring Bitcoin to the world, to result in better adoption. It's more good than harm.
Exactly, that's a huge point that many people forget because they are too extremist. This kind of internal fights are just bad for bitcoin and the cripto world, we are still at the beginning at the end, do you guys prefer someone who buys bitcoin through a CEX or someone who doesn't buy at all? The knowledge of the DEXs etc will follow. It reminds when I talk with vegan friends who are absolutely against people who are "just" 80% vegan, I think 80% is better than 0%, and people just need time for a certain time of transition but this is our world today, we want something 100% and we want it now. It's just stupid for me. True DEXs, like BISQ, are open source projects licensed under a GPL-like license that makes the project "owned" by the community. If a lead developer leaves, another from the community can take his/her place, like Bitcoin when Satoshi left, or Linux if Linus Torvalds leaves.
Problems with Bisq is their low trading volume. So it reveals the fact that not much people actually care about privacy, anonymity and truly DEX. If they care about that, they will use true DEX like Bisq more and will contribute to make trading volume on it much higher.I disagree with the OP on the opinion. Bitcoin is for everyone and there are many use cases for it, on DEX, on CEX, on Peer-to-Peer marketplace, gambling sites, etc. Nothing destroys the true value of Bitcoin. Together, they contribute to bring Bitcoin to the world, to result in better adoption. It's more good than harm.
In that future, I'm very confident there will be more, and better BISQ-like decentralized exchanges implemented, and more peer to peer exchanges like LocalBitcoins/HodlHodl. Why? Because it they will be necessary for further development of Bitcoin. Exchanges becoming like banks is deteriorated development.
I absolutely hope as well that in the future we'll have several reliable DEXs, that would be the natural evolution of cryptos. At the same time I think CEXs will still have their market share because this world is going to be so big there everyone can have its own space. It's up to us deciding what to use depending on the situation because if someone wants to cash out, doing it through a regulated exchange with KYC approved for sure is going to be way more simple than simply getting some money from some unknown platform.The problem with DEXs is that even if the technology is decentralized there is still a single point of failure which are the people that own the DEX, one of the likely reasons why satoshi disappeared was to eliminate this point of failure in bitcoin, so we need another visionary like satoshi that creates a DEX technology but that is willing to leave it behind when the time comes, something which is unlikely to happen as such a person would leave a lot of money over the table by doing a move like that.
True DEXs, like BISQ, are open source projects licensed under a GPL-like license that makes the project "owned" by the community. If a lead developer leaves, another from the community can take his/her place, like Bitcoin when Satoshi left, or Linux if Linus Torvalds leaves.
Centralized Exchanges are not supposed to be an integral part of the market. While the illusion of fairness and justice exist in theory, in practice, how many people got their money back from scam/bad faith cexs? CEX's (even though regulated by organizations and law agencies) are outdated and completely unnecessary in the future of Blockchain. Since that was what Bitcoin is about from the start. No more third parties with their hands in our pockets.
DEX's are just really new. They will improve, just like Bitcoin exchanges did.
DEX's are just really new. They will improve, just like Bitcoin exchanges did.
DEX also has a downside, do you remember the squidgame scam on PancakeSwap? And what kind of restoration is there for the victim? The answer is none. Not even a guarantee of recovery, because DEX does not involve the legal authority to deal with all forms of crime caused and PS will not bother chasing the scammer. In fact, now the case seems to just disappear.
Then, what about MTGox, it was the most historic case of crypto fraud and now it has found a light as the hunt for scammers has continued since the hacking incident occurred thanks to pressure from legal authorities.
I think it needs some reminding that what we currently have, in terms of "decentralised finance" is not truly decentralised. But it will become so, in the future when adoption and technology become significant aspects of the entire nature of DeFI.
The Squidgame scam on pancakeswap did not have anything to do with Decentralisation. Perhaps it could be argued that a con point of decentralisation is the lack of arbitration when human nature fails and allows such a scam to happen to them.
TLDR: Rugpulls and DEX's have nothing to do with each other. Its down to the individual not to fall for obvious scam coins with no source of value generation for the token and an anonymous team.
Today I read the news that the European Parliament obliges to deanonymize a transaction if it exceeds $1000. It seems that this is becoming a trend and will soon become commonplace in the crypto industry, just as KYC became commonplace in its time. Everything goes to the fact that the crypto industry will be completely controlled by governments and all your data will flow into certain databases.
I don't think it's the CEXs that are destroying the value of bitcoin. The value of bitcoin is destroyed by the very adoption of bitcoin, no matter how strange it may sound. The more expensive it becomes, the more often it is used, the more it is subject to regulation and control. This is the other side of today's high price of bitcoin.
Wait, what they proposed today was an initial draft, so to become law it still has go through other 2 approvals, and it can also be modified. It looks like that the exchanges could simply ask for a confirmation buy the user that the wallet he is moving to money to/from it's his, so the most annoying part is not the wallet rather than they have to advise pretty much every single transaction. That's ridiculous. I don't think it's the CEXs that are destroying the value of bitcoin. The value of bitcoin is destroyed by the very adoption of bitcoin, no matter how strange it may sound. The more expensive it becomes, the more often it is used, the more it is subject to regulation and control. This is the other side of today's high price of bitcoin.
You've said some solid point or simply the pro's on dealing with centralized exchange which you could really have that kind of security when it comes to your funds which if there would be some hacking incident then
tendency on being compensated or recovery of funds would be there unlike when you are dealing with DEX.Yes, they might be that heavily centralized but there are actually key areas which is really helpful on users part.
It doesnt really totally ruin the true value or utility of these coins specially bitcoin yet people could make on their own choices.
tendency on being compensated or recovery of funds would be there unlike when you are dealing with DEX.Yes, they might be that heavily centralized but there are actually key areas which is really helpful on users part.
It doesnt really totally ruin the true value or utility of these coins specially bitcoin yet people could make on their own choices.
Its just too out of mind for someone to think that they could store their crypto better than a crypto exchange could. Don't get me wrong we have heard about a billion bad stories about horribly small places. Like that canadian exchange where the owner died and all, but that was like a few hundred million dollars. Binance is multi hundred billion dollar company and so is coinbase as well. This means that we are talking about security at a level we have never seen before in the digital world. If you think that you could store your crypto better than Binance or Coinbase, then good luck to you, I do not have that confidence in myself
Centralized Exchanges are not supposed to be an integral part of the market. While the illusion of fairness and justice exist in theory, in practice, how many people got their money back from scam/bad faith cexs? CEX's (even though regulated by organizations and law agencies) are outdated and completely unnecessary in the future of Blockchain. Since that was what Bitcoin is about from the start. No more third parties with their hands in our pockets.
DEX's are just really new. They will improve, just like Bitcoin exchanges did.
DEX's are just really new. They will improve, just like Bitcoin exchanges did.
DEX also has a downside, do you remember the squidgame scam on PancakeSwap? And what kind of restoration is there for the victim? The answer is none. Not even a guarantee of recovery, because DEX does not involve the legal authority to deal with all forms of crime caused and PS will not bother chasing the scammer. In fact, now the case seems to just disappear.
Then, what about MTGox, it was the most historic case of crypto fraud and now it has found a light as the hunt for scammers has continued since the hacking incident occurred thanks to pressure from legal authorities.
tendency on being compensated or recovery of funds would be there unlike when you are dealing with DEX.Yes, they might be that heavily centralized but there are actually key areas which is really helpful on users part.
It doesnt really totally ruin the true value or utility of these coins specially bitcoin yet people could make on their own choices.
Centralized Exchanges are not supposed to be an integral part of the market. While the illusion of fairness and justice exist in theory, in practice, how many people got their money back from scam/bad faith cexs? CEX's (even though regulated by organizations and law agencies) are outdated and completely unnecessary in the future of Blockchain. Since that was what Bitcoin is about from the start. No more third parties with their hands in our pockets.
DEX's are just really new. They will improve, just like Bitcoin exchanges did.
DEX's are just really new. They will improve, just like Bitcoin exchanges did.
DEX also has a downside, do you remember the squidgame scam on PancakeSwap? And what kind of restoration is there for the victim? The answer is none. Not even a guarantee of recovery, because DEX does not involve the legal authority to deal with all forms of crime caused and PS will not bother chasing the scammer. In fact, now the case seems to just disappear.
Then, what about MTGox, it was the most historic case of crypto fraud and now it has found a light as the hunt for scammers has continued since the hacking incident occurred thanks to pressure from legal authorities.
I understand the idea, we have already managed to build swaps where people could earn money via liquidity and people are thinking that maybe we could have DEX in the future doing far more trading than CEX however people are forgetting the power of these companies.
I mean Binance is so huge that they would build a system where it is dex but they are the ones that are making the money. They could just provide the liquidity themselves, and make all the profit from the swaps we do as well. Plus we do need centralized exchanges for a few stuff, like getting into crypto, because I need to somehow turn my fiat to crypto or vice versa in some sort of way.
I mean Binance is so huge that they would build a system where it is dex but they are the ones that are making the money. They could just provide the liquidity themselves, and make all the profit from the swaps we do as well. Plus we do need centralized exchanges for a few stuff, like getting into crypto, because I need to somehow turn my fiat to crypto or vice versa in some sort of way.
They are just in place currently because we have not found a better way. But we are looking for better ways to make Bitcoin more decentralized.
What is a better way do you mean? Remove CEX?Is this a centralization problem because CEX has roles and personal data of its users which at any time can be asked by the government to control how much money is in it?
The role of CEX undermining Bitcoin? I just thought somehow when CEX was removed, maybe the trading volume wouldn't be this high until now. Despite the dire point of view of CEX, I feel safe on a trusted platform that if at any time lose funds on it has a minimal level of solution.
CEXs not here to stay disproven many times already. DEXes came, DEXes went. The ones alive today and thriving haven't been around for very long and when "defi" yields less and less, people will move on to the next fancy thing. CEXes have only gotten bigger. The cracker here is so many new defi coins still want to list on exchanges -- there's the exposure, there's where regular Joe lives, there's where it's still easiest to get your hands on crypto.
Of course I advocate for self-custody, but CEX will be for a long time the gateway.
Of course I advocate for self-custody, but CEX will be for a long time the gateway.
CEX is not here to stay. Sorry, centralized boys and girls. Centralized Exchanges are not going to be part of Bitcoin's future.
Why? Do you think CEX won't survive a long time in crypto industry? 
In my country, CEX plays a good role to introduce Bitcoin and crypto as a whole. Without CEX, people in my country probably aren't interested in Bitcoin because they are hard to believe with exchanges like DEX. By the way, Binance, Huobi, KuCoin, and many other top exchanges are CEXs, which means people around the world trust CEX. How can CEX not a part of BTC future, mate?
CEX is only suitable for daily transactions and exchanges, holding assets on CEX is not safe so use non-custodial together with CEX.
Centralized Exchanges are not supposed to be an integral part of the market. While the illusion of fairness and justice exist in theory, in practice, how many people got their money back from scam/bad faith cexs? CEX's (even though regulated by organizations and law agencies) are outdated and completely unnecessary in the future of Blockchain. Since that was what Bitcoin is about from the start. No more third parties with their hands in our pockets.
DEX's are just really new. They will improve, just like Bitcoin exchanges did.
CEX is not here to stay. Sorry, centralized boys and girls. Centralized Exchanges are not going to be part of Bitcoin's future.
Why? Do you think CEX won't survive a long time in crypto industry? In my country, CEX plays a good role to introduce Bitcoin and crypto as a whole. Without CEX, people in my country probably aren't interested in Bitcoin because they are hard to believe with exchanges like DEX. By the way, Binance, Huobi, KuCoin, and many other top exchanges are CEXs, which means people around the world trust CEX. How can CEX not a part of BTC future, mate?
CEX is only suitable for daily transactions and exchanges, holding assets on CEX is not safe so use non-custodial together with CEX.
In that future, I'm very confident there will be more, and better BISQ-like decentralized exchanges implemented, and more peer to peer exchanges like LocalBitcoins/HodlHodl. Why? Because it they will be necessary for further development of Bitcoin. Exchanges becoming like banks is deteriorated development.
I absolutely hope as well that in the future we'll have several reliable DEXs, that would be the natural evolution of cryptos. At the same time I think CEXs will still have their market share because this world is going to be so big there everyone can have its own space. It's up to us deciding what to use depending on the situation because if someone wants to cash out, doing it through a regulated exchange with KYC approved for sure is going to be way more simple than simply getting some money from some unknown platform.
In that future, I'm very confident there will be more, and better BISQ-like decentralized exchanges implemented, and more peer to peer exchanges like LocalBitcoins/HodlHodl. Why? Because it they will be necessary for further development of Bitcoin. Exchanges becoming like banks is deteriorated development.
I absolutely hope as well that in the future we'll have several reliable DEXs, that would be the natural evolution of cryptos. At the same time I think CEXs will still have their market share because this world is going to be so big there everyone can have its own space. It's up to us deciding what to use depending on the situation because if someone wants to cash out, doing it through a regulated exchange with KYC approved for sure is going to be way more simple than simply getting some money from some unknown platform.on which they could easily convert it to fiat and then transfer it out into their bank accounts or simply could able to cash out it and this is where DEX do really lacks.
Lets just face the reality that we are indeed needing this even though it do really remove out the true essence of decentralization but this just cant really be avoided.
In that future, I'm very confident there will be more, and better BISQ-like decentralized exchanges implemented, and more peer to peer exchanges like LocalBitcoins/HodlHodl. Why? Because it they will be necessary for further development of Bitcoin. Exchanges becoming like banks is deteriorated development.
I absolutely hope as well that in the future we'll have several reliable DEXs, that would be the natural evolution of cryptos. At the same time I think CEXs will still have their market share because this world is going to be so big there everyone can have its own space. It's up to us deciding what to use depending on the situation because if someone wants to cash out, doing it through a regulated exchange with KYC approved for sure is going to be way more simple than simply getting some money from some unknown platform.Jump to: