Exchange will go out of business if every Bitcoin is hold in private wallet

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Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

By creating a deposit on a cryptocurrency exchange, you are actually transferring bitcoins to the exchange for storage.

If all people liquidated their bitcoin deposits, cryptocurrency exchanges would probably not trade bitcoin. They will trade Ethereum or other cryptocurrencies. Bitcoin was created by the legendary Satoshi Nakamoto. He did not consider it as a commodity sold on centralized cryptocurrency exchanges. Bitcoin is a decentralized protocol for transferring value in the virtual space. It has value in and of itself.

That is why, in my opinion, the collapse of the FTX cryptocurrency exchange in the long run will not have a negative impact on the price of Bitcoin.

A cryptocurrency exchange can exist without Bitcoin, and Bitcoin can exist without cryptocurrency exchanges.

MarjorieZimmermanGinger

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Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

In terms of fighting centralization, Bitcoin is neither a winner nor a competitor but rather a basic concept as the development of bitcoin, because all transactions made are regulated through the system then confirmed, but not limited and controlled by anyone.
The exchange has two functions to use, buy and sell the assets that we own, meaning that limiting the storage of bitcoins in personal wallets will not put the exchange out of business.

Quote

You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

From a security point of view, storing Bitcoins on certain exchanges is extremely insecure, because when an exchange encounters a problem, it will actually result in the loss of the bitcoins that we have, as is the closest case we have seen at FTX. Not to mention that if people were to move Bitcoin off exchanges Bitcoin liquidity would be very problematic, every trade on the exchange would require two on-chain transactions. An exchange will definitely be needed, but not a secure safekeeping of assets.

franky1

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many exchanges already have trading pairs of

USD-BTC
EUR-BTC
GBP-BTC

if all btc is removed from an exchange. an exchange can still function. by becoming a forex

USD-EUR
USD-GBP
EUR-GBP

its not that difficult for them to offer fiat currency swaps

just saying

hd49728

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Quote from: GreatArkansas on December 12, 2022, 07:44:21 PM

Exactly. For me, these cryptocurrency exchanges will stay as, like fiat currency exchanges, the gold exchange is here. The cryptocurrency exchange will stay and it has a lot of uses. The problem with centralized exchange and funds being stolen or lost is because of 3rd party that you let your Bitcoin held by them and in their custody, at the time you deposited your Bitcoin to their account, you already don't have control over your Bitcoin, it's already on their wallet.
That's why a lot of people already suggested, never to store huge amount of funds cryptocurrency exchange, don't use it as personall wallet.

There are demands to use exchanges and people need exchanges to use like they need central banks to use. So central banks, centralized exchanges and decentralized exchanges will continue to exist and expand their business. For me, it won't be changed and none of them will disappear.

It is just at the moment, it is risky to store money on centralized exchanges. People should more seriously use their self custody wallets before everything about centralized exchanges and consequences from FTX collapse become more clearly.

Even everything is clearer, safer, they still should store most of their cryptocurrency in self custody wallets, not on exchange accounts.

CryptSafe

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Before I proceed, I want to ask you a question. Do you really agree with me that without exchange bitcoin circulation and recognition would not have attained this height. I understand the fact that these days, Third party exchanges are best and good at conducting trade and all is still very much good. It does not necessarily mean that they would fall though in some cases, they are better than nothing. Exchange is for the smooth facilitating and circulation of your Bitcoin globally. People tend to buy more from exchange than holding a p2p transaction. So therefore you know what that probably means. Exchange can't do without bitcoin
And bitcoin needs the help of the exchange to facilitate easier purchase and ownership

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Quote from: Stepstowealth on December 13, 2022, 05:32:54 PM

Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

Exchanges provide other services apart from being used as a wallet, not all will not go out of business, the smart one's will find a way to stay important, maybe they will focus more and work on improving another service they offer. The ones that can adjust will survive, the ones that cannot adjust will be the ones to go out of business.

Come to mind off that the only way on cashing out your coins or crypto into fiat excluding direct p2p is in going through exchange platforms, not all would really be that confident on having that p2p transactions

and this is where exchangers do really play their role and even though it is really something that do talks about centralization but still cant avoid that there are services which these platforms
could able to do.

This is why they are really that getting much attention or in demand despite on being centralized.People are aware but they could bare up with the risk.
Thing here is that you shouldnt really make them as your main wallet.Period.

Stepstowealth

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Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

Exchanges provide other services apart from being used as a wallet, not all will not go out of business, the smart one's will find a way to stay important, maybe they will focus more and work on improving another service they offer. The ones that can adjust will survive, the ones that cannot adjust will be the ones to go out of business.

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Quote from: GeorgeJohn on December 13, 2022, 01:46:20 PM

Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

I have understand the point you are trying to make, obviously your point has been narrated some years back, because i have come across of this particular statements of not leaving your Bitcoin in an exchange because it can be hack or lost at any point in time, the process whereby your coin can be served is the process whereby your keep your coin a wallet is not exchange.

because from the beginning the exchange was just a place to sell and buy every bitcoin and crypto only. not to store in a long time there. We must realize this important point from the start. but most people forget about the function of the exchange itself and instead think of exchanges as personal wallets, that is, they store their assets on exchanges, even though this is certainly a wrong action. because Exchange is not a place to save. but only as a place to sell and buy (exchange). and after the transaction is complete, we have to move our assets back to our personal wallet.

Iroh

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Quote from: Jawhead999 on December 12, 2022, 01:14:52 AM

You're really blame centralized exchange when the main problem why many people lost their funds are because their own fault/stupidity? there's no centralized exchange ever suggest their customers to leave their coins on their account! Just use the exchange like marketplace where you buy or sell the coin, then send it back to your non custodial wallet.

Although I always advice to everyone to stay away from centralized exchange, but for most people who don't care with privacy, I wouldn't blame them since it's their own choice and it help Bitcoin adoption.

Yeah, I think the main problems are the individuals who despite all the warnings and glaring signals, still choose to leave their funds on centralized exchanges and not the exchanges themselves. The centralized system xchamges are like you said, a market place where you could buy and sell your coins.

Recently, there is a scare making the rounds about binance going under. The scare is right now causing folks to take their funds off there. I wouldn’t call the scare a welcome development but it helps serves a purpose to remind people that centralized and exchanges are never to be trusted with your coins.

lixer

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Quote from: GeorgeJohn on December 13, 2022, 01:46:20 PM

Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

I have understand the point you are trying to make, obviously your point has been narrated some years back, because i have come across of this particular statements of not leaving your Bitcoin in an exchange because it can be hack or lost at any point in time, the process whereby your coin can be served is the process whereby your keep your coin a wallet is not exchange.

Not only in the past but even until now, statements like that are always being repeated and serves as a reminder for those who forgot it and also for those who are new in cryptos. BTC being pulled out inside a crypto exchange and then kept in a personal wallet is a good idea but it doesn't remove the fact that we will not be hacked anymore or lost our coins. We still can if we are careless on what we are doing.

This is why in everything that we do, we must always be cautious and do a research first if you are not familiar on that thing your are dealing with. Double checking things (i.e if the wallet address is correct) before sending a coin is another thing that we should practice.

GeorgeJohn

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Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

I have understand the point you are trying to make, obviously your point has been narrated some years back, because i have come across of this particular statements of not leaving your Bitcoin in an exchange because it can be hack or lost at any point in time, the process whereby your coin can be served is the process whereby your keep your coin a wallet is not exchange.

Ojima-ojo

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Quote from: Fivestar4everMVP on December 13, 2022, 01:03:33 PM

Quote from: OgNasty on December 13, 2022, 12:55:01 PM

Looks like Binance is now experiencing a bank run. Get your funds off Binance immediately if you have any on there. These bank runs are happening all over crypto and Binance is today’s target. I would not only get your funds off Binance, if you own any BNB it may be time to sell that and move the funds into BTC or if you have to, ETH. Not doing anything now could have disastrous consequences. Act now.

If you are confident that this information is of utmost importance and really want people to take action on it, I suggest starting a new topic with it, that is how you can reach alot of users, I don't have any stats to back this up but personally, I believe that most users here don't really comment, except one that is a reply to theirs(that is a reply(quote) to their comment).

So it is just my humble opinion, since personally, I think this information is really important if it is genuine, so if you have your source and trust it to be really genuine, then it will be best you turn this to a new topic, to reach as many as come on this board.

I have read similar warning somewhere on Reddit now it is clear that the binance bank run is off already with the money laundering, case against binance I will suggest everyone stay off binance for the main time and this is the best time to hold bitcoin or other altcoin like ETH till further notice let say till after bitcoin halving everyone should keep they funds off centralized exchange.

FTX own case was the beginning of a bigger war against centralized cryptocurrncy exchanges.

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Quote from: OgNasty on December 13, 2022, 12:55:01 PM

Looks like Binance is now experiencing a bank run. Get your funds off Binance immediately if you have any on there. These bank runs are happening all over crypto and Binance is today’s target. I would not only get your funds off Binance, if you own any BNB it may be time to sell that and move the funds into BTC or if you have to, ETH. Not doing anything now could have disastrous consequences. Act now.

If you are confident that this information is of utmost importance and really want people to take action on it, I suggest starting a new topic with it, that is how you can reach alot of users, I don't have any stats to back this up but personally, I believe that most users here don't really comment, except one that is a reply to theirs(that is a reply(quote) to their comment).

So it is just my humble opinion, since personally, I think this information is really important if it is genuine, so if you have your source and trust it to be really genuine, then it will be best you turn this to a new topic, to reach as many as come on this board.

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Looks like Binance is now experiencing a bank run. Get your funds off Binance immediately if you have any on there. These bank runs are happening all over crypto and Binance is today’s target. I would not only get your funds off Binance, if you own any BNB it may be time to sell that and move the funds into BTC or if you have to, ETH. Not doing anything now could have disastrous consequences. Act now.

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Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

for long centralized exchange had been attacked by users who understand the safety of their coins outside of their hands so private wallets are the safest , Not your Key Not your Bitcoin so why need to store in exchange ?

I only use exchange sometimes when I need to round out my funds or if needed to use p2p in to our local wallet.

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Quote from: Kakmakr on August 01, 2022, 04:41:02 AM

Well, most people do not care about the concept of "freedom of wealth" and "true ownership" of their Private keys, because they care about things like convenience and shifting the responsibility of "security" to third party service providers. They do this, because that is what traditional centralized institutions sold them on..... Roll Eyes

The centralized authorities told them that only they can provide "security" for savings .... so they accepted that as the norm. It will take a lot of education to break this standard that has been set by Banks and other centralized financial institutions. Roll Eyes

People are selfish. The purpose of transferring the responsibility to a third-party service is so that you don’t have to be responsible for the loss of your money, and you can ask a third party to hold you accountable. People have developed the habit of shifting responsibility for "safety" since childhood. It is also difficult to break this habit.

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Quote from: irhact on December 12, 2022, 07:35:48 PM

Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

(.....)
I don't think anybody wants the exchange to go out of business as they provide means of exchange to their users but what is been fought against is the idea of storing your coins on exchange. Make use of exchange but only for trading and not for storing of your Bitcoin.

Exactly. For me, these cryptocurrency exchanges will stay as, like fiat currency exchanges, the gold exchange is here. The cryptocurrency exchange will stay and it has a lot of uses. The problem with centralized exchange and funds being stolen or lost is because of 3rd party that you let your Bitcoin held by them and in their custody, at the time you deposited your Bitcoin to their account, you already don't have control over your Bitcoin, it's already on their wallet.
That's why a lot of people already suggested, never to store huge amount of funds cryptocurrency exchange, don't use it as personall wallet.

irhact

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Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

Only a small percentage is doing this as we have reports of millions been lost in every exchange hack or when they collapse. This thread was started before the FTX collapse yet millions were still lost in that too. We can't do away with the fact that centralized exchange will be getting a fair share of usage and people will trust them to store their Bitcoin for them even though they're not the best option.

I don't think anybody wants the exchange to go out of business as they provide means of exchange to their users but what is been fought against is the idea of storing your coins on exchange. Make use of exchange but only for trading and not for storing of your Bitcoin.

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Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

Bitcoin belongs to its own blockchain. And everything existing on other chains are just tokens TBH. And removing all the BTC from CEX to a private cold wallet won't change the fact that centralized exchanges have other tokens too. In order to keep their business running, they can always use those for trading and other things. BTC does holds a large amount of assets in CEX but they can always run the whole thing without BTC.
This is just my thought.

sulendra12

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Quote from: Ojima-ojo on July 31, 2022, 05:12:49 PM

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

Pretty sure they will still run if some traders decide to hold in private wallet
- Majority of people out there still uses centralized exchanges to sell their assets including Bitcoins and want to withdraw it to anywhere else like Bank and also some of them don't bother to send it to private wallet as long as they think the exchange is still "secure" enough to hold their assets. For people that still have small amount of budgets in their wallet on exchanges and then they don't bother to do it. So exchanges still win here.
- Trades fees goes into exchanges wallet for every transaction you make and with how many people uses exchanges daily then they'd rack up some money over time.

Correct me if I'm wrong.

Topic: Exchange will go out of business if every Bitcoin is hold in private wallet (Read 836 times)