Topic: Decentralized market vs. Centralized market (Read 251 times)

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I also think that both are good. Centralized mean that the government will involve in it and decentralized mean that the government has nothing to do with it. People do not pay income tax on their crypto profit, but the problem is this that you cannot claim any deficit. If crypto market is centralized it will be better for average investors because they would be satisfied that it is government backed currency.

About market for me decentralized market will be more profitable since there's no limit of decreasing or increase the price. Plus we don't need to pay tax.

Anything relate to Centralized have to pay highly tax. Where Decentralized system like cryptocurrency are volatile things like bitcoin and alt coins.

Yeah I agree with you. I don’t want a government controlled currency because they will not only impose tax but also create many obstacles in investing your money. In some fields people do not accept government policies because they do not benefit people. I want that cryptocurrency should be decentralized forever and no one should control your investment and trading options and also the use.

Centralized are the fiat which we are using with the permission of our government. Its mean we have to give tax too.

Decentralized markets is great where everyone can access freely and safe.Centralized markets they control our funds espcially those who require KYC and demand for passports and don't want to accept local ID.Som Centralized exchange too they allow users to deposit and later on its hard for them to withdraw their own money.

for me all have good and bad values respectively. where exchange centralization such as binance offers convenience, a good interface and a gathering place for investors and traders with high trading volume and this will be profitable but their drawbacks still have a crack to hack because they have a centralized server. while the decentralization exhcange is generally able to load many tokens and coins so that the new project and ICO must initially be listed here, but the drawback is the small volume of trade that causes supply and demand are also small and the trade will take longer

But the problem is that if you ask most people, they want the control, the manipulation and the monopolies to happen. They actually feel safer, trusting some exchange, some company, to go and make money for them or to take care of their money.

Worse, is that so many of these "decentralized" crypto companies want the same control. It all started with Ethereum. They made a DAO, but then took a big decision to reverse the hack and losses, and hence showed the ugly side of Ethereum. Same with all those exchanges and cryptos with god figures who make decisions for all the holders.

In decentralization no one is dictating us on what we are going to do, because no one is controlling us. In short we all free to do whatever we want. Whether we waste our investment or not. Since that crypto and bitcoin are being categorized unto it that's the reason why the government can't control us in every nations due they are centralize government.

Both sides do have their own corresponding advantage and disadvantage.So, lets talk first about Centralized market which we do know that it would really give some advantages either on insurance or the accessibility when it comes to transactions which involves on fiat.We wont really see any difficulty but in return we would surely compromise our own identity and this is why some people do really hate up when it comes to centralization because it is fully contrary on why crypto is being created on the very first place.Talking about Decentralized market, this is what most people prefer when it comes to anonymity.

That freedom that decentralization brings actually cannot be under-emphasized because this is one criterion that brings value to this space as it is. Judging from the way things have been over the years, centralization ends up giving a lot of room to control, manipulations, monopolies and a lot of things being affected with bad economy policies and in the case of decentralization, I believe we are all a deciding factor as to how the market goes in terms of demand and supply based on usage.

Apparently, everything in life will always have a pro and con but if we really want to look at the advantage that the decentralized space brings to common people, we will both agree it is far better off than centralization.

Centralization is just a part of the system that tend to benefit the elites, government and the banking system, while the working class and lower class tend to be the ones to bear the outcome of crazy policies that ends up affecting everything which is something the decentralized ecosystem rules out.

I personally are both equally important, where sometimes we want to invest in a decentralized way, that is, with full freedom without the ties and regulations of any party.
on the other hand we also need investments where there is supervision and regulation of the investments that we run so that we can avoid events that we do not want, such as our investments that suddenly disappear for example, or what we often call scam words.
so which one is better depends on the stability of our own heart to choose which one.

The best and simple comparison is to ask you so far, which has been a lot better; fiat or cryptocurrencies ? It is as simple as that. Fiats are centralized, which means they are controlled and someone will always have an upper hand forever, but for one thing, decentralization gives everyone an equal chance and how each person decides to use that chance is best left to them. Decentralized basically is that no one is actually controlling, and the market is more like a free ride for everyone.

The weightage of cons of decentralized market is very less compared to centralized one. In long term perspective, after getting established these decentralized markets will be the most used one hence the current problems due to unregulated nature will fade away over time for sure.

They both have pros and cons but I think decentralized is better

Decentralized market system gives us freedom to invest without knowing our full identity and also doing whatever we want without being interfered by any group or organization. Centralized on the other hand alrhough it needed us to state our personal info, it helps us to lessen scams we all do not want.

They both have pros and cons, the difference really is in how the trades are carried out and where the authority lies. A centralized market is a financial market structure that consists of having all orders directed to one central exchange with no competing market controlled by a centralised authority. There is only one price available to investors seeking to buy or sell.

Whereas in a decentralised market there are competing prices because various buyers and sellers are connected directly. So when you think about it in the long run decentralised markets would probably be a lot more profitable compared to centralised markets. Due to the absence of intermediaries.

However, both can be profitable and you just have to learn how to make money on either.

I believe at the end it is all about variety like someone said. However, the potential for freedom in the way you can spend is there when it comes to decentralization and that is something no one can get from centralization.

Centralization brews control and with that, there would always be some certain limitations as time goes on, which is the reason why we have seen how fiat has really messed up over the years with some economic policies that ended up backfiring and all sort while the citizens end up suffering the consequences of the economic meltdown. Decentralization brings freedom and I think that answers it all.

Well, by definition, centralization and decentralization are directly opposing concepts, but we definitely need both of them. In my opinion, decentralized market is better. It offers freedom to its users and community and in decentralized market your private info and identity are quite safe. There is no central authority in decentralized market..

A lot of explanation will tell you what are the differences of decentralized and centralized market. We've been living in a centralized market where there's manipulation that usually happens, monopoly, hoarding and that's how they play the market which gives us the suffering. While in decentralized market, we have the rights and can avoid manipulation.

Now lets define first what is the meaning of Decentralized Market and Centralized Market

What is Decentralized Market?
- A decentralized market is a market structure that consists of a network of various technical devices that enable investors to create a marketplace without a centralized location. In a decentralized market, technology provides investors with access to various bid/ask prices and makes it possible for them to deal directly with other investors/dealers rather than with a given exchange.

What is Centralized Market?
- A centralized market is a financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.

Now lets talk about the difference of Decentralized Market vs Centralized Market
- Centralized Market is controlled by a central server, while the Decentralized Market is no central server, peer-to-peer decentralized exchange protocol.
- Centralized Market is easy even for beginners, while the Decentralized Market is not user-friendly; too technical even for intermediate or advance user.
- Centralized Market offers advance trading feature, while Decentralized Market offers basic trading features.
- Centralized Market required; higher transaction fee, while Decentralized Market offers basic trading features.
- Centralized Market not anonymous, while Decentralized is anonymous.
- Centralized Market Slower; at risk for server downtimes, while faster; lesser risk for server downtimes.
- Centralized Market single point of entry; susceptible to malicious attacks, while Decentralized Market is multiple points of entry; lesser chances of malicious attack.
- Centralized Market users potentially held legally accountable if issue occur. While Decentralized is accountability is not as apparent as the code could be considered law.
 

Before you go in and list all the pros and cons, like others above already start, you should also take a look at what's already on offer and make comparisons from there. Some of the points aren't even possible to validate, like OP's original point about higher profitability with centralised markets (huh?).

A starting point would be the existing offerings of decentralised exchanges (DEX). We've now come to see that none of them are "purely" decentralised. After all, what's total decentralisation and how can it even be possible at this point in time? The majority of DEXs out there have only decentralized the storage of funds - meaning you still keep your Bitcoin or crypto on your wallets. That's already a great starting point since it eliminates the risk of the exchange running of with your funds.

But there are still several aspects that these DEXs have centralised. Most of them currently require you to use the blockchain they're using, so you can only trade tokens based on those platforms. The majority of DEXes therefore are Ethereum-based, since the alt token market is mainly populated with ERC20. Even the Bitcoin DEXs like Counterparty means you can only trade tokens based on Bitcoin blockchain like XCP. Other DEXs like Waves the same. So they're all existing in their centralised markets in that sense. I know DEXs in development will feature atomic swapping so theoretically any supported blockchain could interact.

Other aspects? Hosting of the software on central servers?

I'm going to try to make a list of pros\cons on this matter. So pros of decentralized market:
1) It's not regulated by establishment rules, so pretty much everything can be found there.
2) It's usually tax free, so feel free to make as much money as possible, only you are your roadblock.
3) Your private info and identity would be pretty safe using those markets.
Cons:
1) No one really is credible enough to trust them 100%.
2) It's not "regulated" per se.

Pros of centralized markets:
1) You can say that the fact, that it is regulated, because it makes it rational and organised.
2) People usually can trust it.
Cons:
1) Monopoly.
2) It develops quite slowly.
That's the things i got from the top of my head.

"Variety is the spice of life".
Both the centralized and decentralized systems have their advantages and disadvantages.
Decentralized offers freedom and flexibity to its users and the community. Unlike the centralized which is regulated and strictly controlled. This removes the anonymity and reduces spam, and it would also mean taxes imposed on the community.

Centralized system meant to lock us by using our own money with the name of tax or anything.
Sometime this centralised medium may be best for the user's point of you.
Decentralised is the solution for the intervention of these shit things happening in the market.

Bitcoin and all the altcoins are the things which can be helpful to keep your fund without taxation.

We need both of them but to me I think decentralized market is better because it gives more freedom to people to engaged with themselves without no central authority

I been thinking this since yesterday. I made some research  too about the topic. Found some article, say that Centralized market is good to the community as it gives more profit But some article  say that Decentralized  market is better as it gives equallity to the market.
I Got sone confusion  here.
In your opinion  which is better to invest?