Topic: CEX ruins the true value of Bitcoin (Read 814 times)

Both Uniswap and Pancakeswap do not trade bitcoin and bitcoin is the tartget here, maybe we should start looking at bitcoin DEXes. Other option will be wrapped bitcoin or rBTC but invariable the neglect on bitcoin could affect it on the long if many people adopt it. We cant rule out coinbase involvement in this exploitation to control transfer of fund across close countries.

CEX uses a custodial framework which does not give full control of private keys to the user and leads to giving no sense of ownership.

CEX was also good but recently governments start throwing tons of rules and regulations on them which is effect can be shown on bitcoin. But CEX is still better than DEX cause they providing facilities of trade, margin, future, stop loss and thus people can best use what they have decided. Will only p2p transactions help to make bitcoin fly? I think without CEX, it would also ruins bitcoin true value.

There is always pros and cons to everything. Centralized exchanges has been helpful indeed and I can say that for sure because I’m also one of those that started in the cryptocurrency market by making use of these exchanges. They are really helpful for the fact that they have a simple interface and are far much easier to use than the decentralized or non-custodial wallets and exchanges. At the same time, we all know that these exchanges are not working the way that bitcoin is meant to be, which is decentralization.

The community is meant to be decentralized and not controlled by anything or anyone.FYI Even if there was no centralized exchanges people would have still been able to learn how to make use of the non-custodial wallets and decentralized exchanges.

There is no denying that CEX has contributed a huge part to the growth of bitcoin and the entire market. Most of the people entering the market will most likely have a CEX account, after all trading exchange through CEX is simpler and safer than DEX for newbies.

Currently, there are many reputable centralized exchanges like Binance, I must say that I feel satisfied when using Binance. But I still would like to advise you not to put all your assets on a centralized exchange as they can freeze your assets anytime, you are not fully in control of your keys when stored on CEX. The war between Russia and Ukraine has shown us what they can do with our assets.

Yobit and HitBtc were kind of shady almost since the beginning, I've never used them and I absolutely don't plan to ever do it. I'm surprised there still are people who use those exchanges. I've only used Bitstamp at the very beginning, then Kraken and Bitfinex, now pretty much only Binance, Kucoin and Gate.

I am pretty sure that nothing important has been developped since then expect the inerfer of SEC authorities for similar cases. Many other projects turn into a scam after building the good reputation for several years. Not toention examples like Yobit and HitBtc who are still operating despite the accusations .

In exchange of convenience from converting your fiat to crypto then you would really be needing to exchange your personal information or simply your anonymity or identity.If you are fine with that and dont bother
yourself about getting known or possible taxation or something like that then go ahead but it is totally contrary on why crypto is been created for which is for decentralization.
Yeah, CEX might ruin it but are there things that we do have some choice then we do go with that but now, we dont have something that we could choose on.

Although we have contrary opinions, for or against. CEXs have contributed to the exponential growth of people who use bitcoin. They have had the opportunity to learn about bitcoin on these platforms and have even created a way of working as a trader, in P2P and other ventures linked to these sites.
I do not disagree with the CEX, on the contrary, I feel safe in their apps, and every day I notice improvements in UX/UI due to user demands.

This is what you get when you use the service of a centralized exchange and one other exchange you failed to mention is the popular binance exchange which also requires certain information from a user of a different country with their peculiar KYC requirement. I have always tried as much as possible to avoid the use of centralized cryptocurrency services because of the demand for personal information and documents to be able to operate on them. I call them the crypto bank as they are performing according to the same law that guides the banking system.

gee big surpirses bitcoin gets hit again. does everyone just short btc everyday until its shutdown ow? Is it that easy to make money by only shorting every single rise?

Shameful display of fucking down every damn week

I double checked, it happened in February 2014 and they stole approx $473 mln, which of course is a huge amount of money even today, but at the same time it's not that much compared to the current exchanges gains through the commissions. CZ alone is worth at least $75 billions, so the difference is huge.

With my statement I don't mean we need to trust CEX at 100% but for sure many things changed in the last 7-8 years.

Bitcoin is created for the purpose of freedom and decentralization. But CEX works the other way. Maybe at first we could use help from exchange platforms to make crypto assets well known, but eventually people will realize they don't need CEX to trade at all. It's a process that takes time.

CEX ruins the values(features and benefits) of bitcoin(privacy/pseudonymity)
.. BUT
CEX establishes the value($financial) of bitcoin
after all when you check the price of bitcoin. you check the main markets.


best advice is. If/WHEN you are ready to convert from fiat to bitcoin or from bitcoin to fiat. expect that the wire transfers from banks will be reporting you anyway or knowing your involvement in crypto. so dont be afraid to use CEX when you are dealing with fiat. .. but if your not dealing in fiat. dont use an exchange

The solution is simple, don't use any centralized exchanges. Do not keep you money on them, do not make any trades there. But then, if people weren't using these exchanges the space would be so dull and empty. It is probably most people treat crypto as a giant casino and centralized exchanges are often the fastest and the only ways of depositing/withdrawing cash...

bitcoin is too slow for onchain exchange. there is the weakness. it must be trade via an sql ledger not the bitcoin network ledger.
And that makes the fixed supply denominator notso fixed.

Here we have reached the end of the bitcoin experiment. we learned so much and now we know.

 exchange must be onchain for true supply economics to work.

Did  futures and other infinite supply mechanics kill bitcoin, did sql ledgers trading kill bitcoin, did we all kill bitcoin?

yes

At least we do have some option but majority of us wont really be having any options but to dealt with CEX since this is the only medium or path for us to make out conversions from crypto to fiat which cant be possible
on decentralized exchanges. We've seen platforms had no kyc wayback but since they are regulated then this is where they do really get pressured on applying such terms and conditions because they've been asked to do so which would lead no choice and wont really be surprising that almost centralized platforms would really come into this path  which is something to become the norm.

If i am not wrong, it was 2014-2015.
It's a famous case. Please take a look at it. The case seems to be resolved after catching up its CEO but the authorities still fail to recover the full lost amount knowing that the thief has partners from inside/outside the platform to help him enjoy his winnings.

The main reason for someone to scam others is greedness which you won't see until the incident happens.

Could you please remind me in what year MtGox scammed its users? Many things changed in the meantime, and all the exchanges that scammed usually were minor exchanges, sometimes located in secondary countries (I remember one in Turkey for example). Of course everyone can believe what he wants to believe, if you think that Coinbase or Binance will scam their users, you are totally free to think it. But again, I don't see a single reason for them to do it.

Yeah, DEXES are not fully developed yet and people are comfortable trading on centralized exchanges. However, the there is no difference in true value of  bitcoin if dexes were more common.
I don't think that anyone does not buy or trade bitcoin only because trading platforms are centralized.

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

The possibility of theft from members of the platform themselves, even if they are its owners, remains a possibility that cannot be abandoned. We have seen similar cases in the past so we do not cancel any hypothesis. And I think we all remember the MT.GOX platform, which is an issue that has not yet been resolved after making sure that the project managers were the ones who stole the users' money. Assuming that platform owners are rich, users' savings represent a much larger figure that can be easily obtained instead of working to make a profit.

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.

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?

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.

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.

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.

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.

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.

 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

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.

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.

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.

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.

Admittedly, CEX is an integral part of the market. Although CEX is regulated by organizations and law enforcement agencies, CEX is easy to use and the utilities it provides are almost complete for users. With DEX, currently DEX has many limitations in utility as well as expensive transaction fees, so it is not as popular and popular as CEX.

CEX is only suitable for daily transactions and exchanges, holding assets on CEX is not safe so use non-custodial together with CEX.

So you mean that you're worried about a possible exit scam? That's always a possibility, but let's face the reality taking people like CZ and Sam Bankman-Fried: those people already have tens of billions of dollars, and they're assets are extremely (if not completely) crypto related, so why should someone in their position scam? To eventually get some other billion of dollars while tanking the market and becoming an international criminal? What are they even going to do with that money? They already enough money for the next 20 generations of their families.

No matter how DEX would flourish out in the market it would still remain inferior to CEX.Why? As long it wont really be able to attach  in between fiat to crypto conversion and this is where people do really need
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.

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.

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.

Currently there are very few KYC less p2p trading platforms and it may not be convenient for every fiat conversion and also in large amount, centralized exchange acts as trusted third party because we know the source of funds coming from their bank account but when doing p2p transactions with anonymous person we have more risks like someone can use hacked bank account and buy bitcoin so they will never exposed but our bank will freeze our account that is why I am sticking with LBC even though they made KYV mandatory because we can find the funds are coming from the original owner or third party account.

It's just sometimes and it really hasn't had a serious impact. I think today's users are savvy enough to have many options to buy BTC from many places. We have hundreds of CEX and DEX so it's really a matter of how users are affected, but I get what you mean, but it's only a small part of a division or an exchange, so don't worry too much about a simple matter.

That part doesn't really bother me. I am not using crypto in any bad way at all and my nation doesn't really see crypto as a legal problem. You could make money, or you could lose money and in the end you would be fine.

This means that we should not really be bothered by having any part of a problem in the crypto world, we should just focus on how we could KYC but at the same time do not share it with the world, and just share it with the governments that require it. I mean I have seen so many people's KYC information leaked so far that I am sure mine must be somewhere out there. I am not bothered by governments seeing it, but regular people seeing it surely doesn't feel nice.

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?

What is a better way do you mean? Remove CEX?

It is not a shame, Defi is a choice, NOT a must. You cannot force someone to use Defi or Cefi.
Don't make it be complicated, mate! 

If we want to accelerate bitcoin adoption, wether we like it or not, CEXs are very useful. What people should understand is that CEXs must be used mainly to deposit fiat, buy whatever you want to buy, and move it to your own personal wallet, don't use the CEX like it's a bank. You say CEXs won't last long, I'm curious to understand why in your opinion companies valued tens and tens of billion should fail/disappear in a market that is growing a lot.

CEX is not here to stay. Sorry, centralized boys and girls. Centralized Exchanges are not going to be part of Bitcoin's future. 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. Decentralized Exchanges are the future. Its just a shame that you can't use DeFi with Bitcoin... Yet. But I have full faith in the increasing technology breakthroughs, especially when it comes to Blockchain.

We'll get there.

Many are preserving their privacy and they would love to avoid cexs but dexs doesn't have much liquidity at least for the newer ones. Although there are dexs that have good volume but the pairs that they need isn't there.

There's always the pros and cons with them but it's all about where you're comfortable trading with. I guess, we just have to bear the reality not unless they become more extreme with their requirements.

CEXs are also tied with their hands and are only following the laws and regulations towards crypto according to where they are licensed.
As much as possible, these exchanges don't like to get information from their clients but they are bound by the protocols of the government.
If they will not abide those protocols, their business will be in jeopardy and they may stop their operations.
So people or crypto users are also complying just to use the services of exchanges and so with the exchanges to retain their business.
We can't avoid this requirement if we do really want more adoption from legal platforms.

I see. The op should not put the blame then to coinbase or to the other centralized exchanges or wallets because it wasn't totally their fault on why they expose a user's identity but it was the order of the government. Those cex also care for the people's privacy and to the reputation of bitcoin but what can they do? they only want to continue their business. They need to think of their selves first before the others so sorry.

It is expected that all people will not need fiats anymore in the future because they can use bitcoin directly once bitcoin have been made a legal tender. I think that will make the kyc obsolete as well but for now, we can use dex and p2p if we only want to bypass the centralization and kyc imposed by the governments.

Probably in the future, a close one, big exchanges like Binance, Coinbase and FTX, that are always trying to follow all the different regulations around the world, could even ask and obtain some kind of bank permits, so they'll be able to lend money to people just like banks do nowadays. I see this as a natural evolution of this sector, big banks should really watch their backs because if I were them, I'd be pretty worried.

I also disagree for comparing bitcoin with those shitcoins. Trading is part of what influences the price of bitcoin. The shitcoins they are talking about don’t have up to one quarter of Bitcoins daily trading volume no matter how much you think that they are being traded. So, trading volume have an impact in the price of bitcoin, they contribute a lot to it.

Basically everything we are doing in the bitcoin market is buying and selling. Even if what you did was to buy bitcoin so that you can Hodl it in your wallet while you wait for the value to increase, it is still buying that you have done. At the end when that bitcoin you're holding in your wallet increases in value, you're going to sell it for profit and someone else is going to buy it as well, that’s just how the market keeps moving every day.

They're not, they are a necessity. They're merely facilitators for buyers and sellers to meet, and provide liquidity for the market. But from another viewpoint, exchanges can become very powerful, that can control this new "financial system" too, like banks control legacy systems. A balance is needed, enter decentralized exchanges like BISQ.

It's for several reasons:
- At the beginning how/where would you buy bitcoin? On the street? From some stranger?
- The exchanges offer a certain level of security because they kind of explain you how to activate the 2FA etc
- Are we sure that someone who try to buy/use cryptos for the first time has the knowledge to manage DeFi exchanges and wallets?

I don't think CEXs are the devil, they're a good tool and I like to use them in combination with DeFi.

That is something out of hand I guess. Thats totally impossible but we did see bitcoin at cents before, and knowing the market volatility, we could really never know what would happened. Crash to $30 its possible if market decided to.

Yeah but Michael Saylors, obviously referring that utilities as investment. He is a capitalist, and we all knew he invested on bitcoin to gain profits. Store of value is literally a term for him to gain his asset called investment asset.

Thats prevention of scammers it is. We can assume that those who hate cex, aside from reasoning of privacy could another alibi of scammers but Im not generalizing it since some reallt preserve privacy.

That's why we call this type of exchange is CEX (Centralized Exchange). If someone wants to use their service, he needs to obey such regulations or rules. They must have the regulations or rules because there is an obligation from the government. CEX is different from DEX, as most of them have offices, they must follow some requirements as a business entity. Their activities are monitored by the government, don't have freedom like DEX. So, it is quite understandable if CEX members must comply with such rules.

CMIIW

Well, those that don't want to use cex, that's their personal choice and who knows if they're involved with those shady activities.

I do agree about their way of finding those scammers on their own platforms is the one good thing that we can see with what they do. And as well as finding out hacked funds and stopping it once it started to get into them.

Just like what happened to Binance when a hacker deposited it to them.

CEX are already working with the government and the banks to carry out regulations in favour of the government. The regulations that will come in the future is going to be more tight than what we have been seeing for long, which is why it is advisable that people starts making use decentralized exchanges starting from this moment if they don’t want the stress that comes with making use of an organization that will be controlled by the government.

This news has been spreading since earlier this year on the regulation tactics that will be used by centralized exchanges.  even  the chief executive officer of the exchange warned about it. CEX are very much similar to banks and they will be able freeze users account if given such order by the government.

I have been  making use of decentralized wallets and exchange for long now, but even that is not enough, as it requires that every cryptocurrency users will have to switch DEX to keep safe and private. Even if you stay with DEX, people that are making use of CEX are required to give out information about recipients,  which is why everyone has to move to DEX if this is going to work.

Maybe some influence, but I don't think it's too big of an issue in the interest of the majority. Basically, I can still buy BTC or crypto through other CEXs. I don't think it's too big since these are exchanges with many whale sharks and not for ordinary users to easily use, so be more comfortable with your choice.

All I can accept is that to some extent "price" is being decided by traders but the intrinsic value which is always close to the price is decided by the utilities otherwise I can't see how it can be sustained for years.

The important thing is the degree of their power. Can they crash the market to $30k? Of course. Can they crash it to $30? Absolutely not.

Obviously. One of the utilities of money is being a store of value, being deflationary makes it an even better SoV.

Real value != financial value. The same mistake when some people in the forum read "HODL Bitcoin as a hedge", and literally conclude "financial hedge". Because of Bitcoin's underlying nature, it's not just a "financial hedge", it's also a hedge against a group of non-elected people who are trusted by plebs to keep the monetary system in order.

It's influenced by many things that lead to these areas being restricted to Coinbase, like the OP's problem, seeing from a 1 CEX perspective, and the effect it has is not too specific. I think users in those regions are still doing well with other vehicles. Obviously, many of the risks from CEX lead to DEX being navigated and favored, but the main issue the OP is talking about is really not so ominous.

Im pretty sure it is. Its the whale trading game make it move just accept it. If they wanted it move down, they will do it, regardless the adoption and its all about the gains and profits from trading. Utilities of bitcoin, do you think people like Michael Saylor bought in for utilities? You know very well he bought it for profits. I do believe in bitcoin as truly decentralized, but just accept the fate that it is being bought due to investment driven reason. If a whale bitcoin holder ( wanted it down) trust me, utility or not. It will go down, what reason he will do it? Ofcourse trading reason.

Check whales wallet do they used it everyday for utlities? I dont think so. But Im pretty confident that they will move their holding basef on CHART (trading) not for peer to peer system.

I disagree. Trading alone can not ensure price rise. There are a lot of markets, like penny stocks or even the shitcoin market that people trade in a lot but they can't gain the same value as bitcoin. At the end of the day it is the utilities that bitcoin provide that makes people "buy" more bitcoin and increase the price regardless of what traders are doing day to day.

That's because your vision is limited. You are only focusing on the fact that the number of people who see bitcoin as an investment has grown but you ignore that people in other groups (the unbanked and those seeking financial sovereignty) has also grown.
In fact if you look closer you can see that many of those who are trading bitcoin are doing it because they want to increase the amount of bitcoin "currency" they own.

These exchanges has to follow the regulations of government if they want to continue their services so what can we expect from them when the government made them to do it. When you are dealing cryptocurrencies with Fiat the KYC will become unavoidable for sure in the next few years and you know we don't have to convert bitcoin to CAD or USD we can simply use bitcoin as bitcoin itself atleast in the future.

The centralized crypto exchanges are already kinda similar to banks,when it comes to complying with the laws and regulations set by the authorities.We can't blame them for that.Every registered business has to comply with the laws and regulations,otherwise it will get punished by the authorities.
I guess that we can't have both value and anonymity.We have to sacrifice one or the other.
Complete anonymity means less value,like messing around privacy coins,which are less valuable or using BTC mixers,which are costing you fees and there's always a risk of getting scammed and losing your coins.
A CEX can also scam you,but at least you could hire a lawyer and sue them.

We cant stopped that since they are being alarmed on those shitty scammers who do money laundering. If there is a way to find those guys before they can continued to use cex for their greed then this is it. Im pretty sure only few would disagree to that. Of course the resistant itself are those scammers hiding on innocence. Some dont want to use the cex for their privacy and we can agree on that but that leaves government no choice for those who arent playing fair ( rugg pull/ scam/ hacked).

Cexs are going to be more stricter since the eyes of the government is with them and they are being monitored as well.

They are very strict to avoid customers or citizens that could be involved with money laundering. That is why some folks have experienced sudden alarm of being suspected involved to those activities that they are discouraging. And they do that through asking more information and additional kyc.

Everyday in centralized exchanges do have sell orders, this means everyday someone want to sell his coins and we can assume most of Bitcoin's daily volumes is traders. Trader will need many features to help their decision of their analysis. It's hard to implemented such features to decentralized exchanges because:
1. trade in DEX isn't automatic, you need to send and confirm, while stop loss is automatic.
2. future trading and margin trading would possible when the liquidity is high.

Well some of them choose to do so, because it fits their new business model... (Circle)   These exchanges know exactly what they are doing and they usually start with "low" requirements for small traders, because they know those users are the bulk of their income.

So, later..... when the user base grow, it will catch the attention of the regulators and they have to start to adhere to all the KYC/AML regulations. (The regulators are not too worried about the small operators, but once they step up into the big leagues.. they are forced to adhere to the same regulations as the big boys) 

Actually it is. Bitcoin price fly to the moon not because many uses it on the decentralized aspect or peer to peer system. It is flying up to this level  due to simply trading. Centralized market and even whales holding massive bitcoin just to trade it and gains from it isnt it?

The bull run is due to the massive adoption of bitcoin on trading and not how the way it is decentralized and being used. And if we based it on stat even Im not looking on it, Im 100% sure that there are more traders and users who used bitcoin for trading rather than use btc for buying or peer to peer and any other form of decentralized system of btc.

bitcoins 'values' (features and benefits) is different from bitcoins financial value
and bitcoins financial value is different than bitcoins price

so lets get things fully correct
bitcoins values(features and benefits) have changed alot. it has actually become less of a system for the unbanked to use for daily purposes of buying food or getting paid a wage(common currency), and instead become more of an investment asset


the financial VALUE is a number that sits below the price. you wont find what the financial value is on any CEX or DEX. its made up from the bottomline support that pretty much everyone would refuse to sell below because no matter what method of acquiring bitcoin you can find, those selling wont sell below it.
thus the main way to work out the financial value is from the cheapest mining cost.
because if no one can mine for any less. everyone would be buying coin because its cheaper to buy than to mine.

as for bitcoin price. its actually the CEX that people gauge prices from.
if you look at many DEX and 'localbitcoin' style portals the price is too varied, so no one can ascertain a correct price thats deemed right for the moment.
however CEX allows people to trade at a single price point and also arbitrage between exchanges to balance out the price over many CEX so that most of the CEX platforms follow each other and so people can see a price point and settle on that number as being the market rate.

You are wrong because value of bitcoin doesn't stem from how easily you can trade it! But the real value of bitcoin stems from how decentralized and censorship resistant it is as a currency or a payment system. This principle does NOT change for bitcoin no matter how much restrictions are placed in some centralized third party service that works with bitcoin.

Because it isn't as necessary for the users to use just a DEX, like BISQ, but I believe if we lose more exchanges to the governments' demanding requirements, DEX trading will become the first choice for many users.

Plus don't believe those trolls who spreads misinformation that DEX, or their developers are "random individuals" hiding away. Decentralized Exchanges are simply solutions to a problem.

They can only play safe when they are doing dex that arent connected to fiat. Obviously these are anon guys. But those dex with fiat conversion will likely to follow what cex is doing to avoid such harsh law of crypto.

Thats true. However some cex doing the opposite and has plenty of issue thats why others are hesitant with this and also we can assume that some whales prefer to have fiat without being noticed and thats where dex comes in. Anyway countries have no other choice but to do some of this since some incidents of hacking and doing money laundering has been happening widely on crypto just to avoid the precious taxes.

People want to use DExes but the decentralized exchanges lack a lot of feature which centralized exchanges offer. If you use uniswap, you will have to pay too much fee  while people can trade the same tokens on centralized exchanges with minimal fee. Pancakeswap has no issue of high fee but often there are liquidity problems. Above all, none of the decentralized exchanges offer stop limit and future trading , margin trading etc. Unless these decentralized exchanges offer all benefits, i don't see people shifting from the centralized exchanges.

Well, the reality is they have really played a big role to the adoption as they are giving service to everyone that eases the conversion of bitcoin into fiat.

It is already there and we can no longer pull over and reverse it that they have grown together with bitcoin. There is still the main purpose of bitcoin but when it has come to the point of exchanging it, there goes the cexs and many of us in here don't mind the requirements as long as we get our money converted from btc.

People like to demonize Coinbase a lot(and sometimes rightfully so), but let's not pretend that they or exchanges in general actually wanted to place stricter measures in terms of manual data collection. 9 out of 10 times chances are these exchanges are just forced to do so.

In this case, we can't blame any of the cex. Because they are providing service as a company, and if they want to provide services, they should abide by the rules of the government. Otherwise, they are able to provide any service.First of all, they do not have any dex, meaning that they do not have any information about users. Because of kyc, all cex have a user's complete information.Why can't the government get the information from Cex as well?So in that case, we can only blame CeX. We also have to blame the government. Though I am also a cex user and it's badly needed because of the trading fees. So I can't blame them for ruining it; they're trying to provide services, but they have to deal with the government. It's what I believed. Others' opinions might be different. Thank you.

The issue is simple and has been discussed many times before. It is the reverse of how the OP puts it.  If Bitcoin is mass adopted and someday reaches $1M in price it will be in part because of CEX and custodial wallets, not the other way around.

I would qualify and say that CEX ruins the original idea of bitcoin to be a P2P electronic cash system, but there are inventions that evolve and succeed beyond the original idea of its creator.

Those who want to use Bitcoin with maximum room for privacy will be able to do so, but they will be in the minority, and at least that's the way it is today.

Mass adoption will come together with governments regulations and CEX, and not against them, despite the original idea of Bitcoin.

CEX are proper businesses set up with proper physical legal addresses which you can file law suits against should they wrong you.
DEX are random individuals hiding away behind tor and proxy and virtual mail/PO Boxes which if they should wrong you, your just lost and no way to claw back anything

CEX are also easy to find on the internet, and have had years of reputation.
DEX are hard to find and even harder to trust

..
dont worry about volume
when an exchange does a arbitrage. it may only have say 100btc involved. but when it sidechain swaps to another exchange, plays on that exchange and then tethers back to then buy coin and repeat every minute. that 1 allotment of 100btc can be seen as being 10,000btc volume due to arbitraging 100 times a day. even though its only 100btc being spend repeatedly


its like looking at bitcoin network 'btc transaction value' per day.
when people re-spend the same allotment of coins by spamming the network EVERY BLOCK that single coin. appears as 144 coins a day.
in short.. volume is meaningless as it does not explain who/how much//how often individuals actually spend individual funds

even things like exchanges just moving funds from cold to hotwallet where its not 'spending' but just organising its own wallet holdings. it appears on the network as thousands of coin 'volume'
EG the 'whale alert' twitter bot keeps announcing whale spends of thousands of coins.. where reality is its just an exchange organising its custodial funds.

so dont put too much thought into the value of the volume statistic

What is interesting, however, is that despite people supporting Bitcoin they are also supporting centralized exchanges and custodial wallets and all things that are essentially against the Bitcoin standard. So perhaps we could ask whether the people really prefer complete independence. For many years, DExes are left behind by CExes in terms of volume. Moreover, despite compulsory KYC hassles and failing a number of times in the process, centralized exchanges are not losing popularity. Is it only because DExes don't support fiat? Or is it simply because CExes are generally better? Or perhaps people aren't really interested get out of fiat altogether?

the issue is simple
if you want to use any service that handles fiat in exchange for another currency(any currency) that service has to register as a Money service business, thus need to create a policy to KYC their customers and monitor for AML and other criminal usage

just because coinbase also handles bitcoin. does not mean coinbase can avoid its fiat requirements/obligations

what you will also find is that if there is any service offering DEX, where fiat is also involved, governments can set up 'honeypot' traps to get evidence that an individual is running an exchange business without a licence. and punish them.
its happened many times with 'localbitcoin' users

so dont think that DEX is default outside of the jurisdiction of fiat laws. because those individuals handling exchanges fiat for a fee will need to register or try extra hard to hide their identity(kind of hard when doing bank transfers)

.. currently exchanges that just do 'swaps' of crypto-to-crypto dont have to abide by money laws. but that may soon change especially when more and more governments are legalising bitcoin as a asset currency, rather than a merchants good/product

yep. by states offering the ability to pay taxes in bitcoin, is a round-about way to slip in bitcoin as 'money' to then gain jurisdiction to then set more laws

At times due to the rules and regulations of certain countries, CEX used to ruin the value of bitcoin. This means these exchanges completely outlaw the reason for which people prefer bitcoin as well as the reason for which bitcoin is being innovated. Coinbase, one among the leading exchange in terms of volume have come up with requirements of recipient information for crypto transfers from users in Canada, Singapore and Japan.

• For Canada the limit is $1000CAD, fow which it requires the recipient information. This new change comes to effect from April 4, and this change is with regards to the Canada's FINTRAC rules.
• For Singapore users, for each and every transaction it requires the recipient information along with country of residence. This comes to effect from April 1, change is following the Singaporean regulations.
• With Japan complete information of the recipient name, address and country of residence is a must. This is according to the English translation of rules established by the Japan Cryptocurrency Trading Association (JVCEA). This will take effect on April 1, said the coinbase.

Recipient Information Required for Crypto Transfers From Users in Canada, Singapore and Japan

We aren't compelled to make use of these exchanges, it is possible to use the non custodial wallets. However this Exchanges might turn to be similar service providers of banks in future while sticking to the rules and regulations.