Exchange will go out of business if every Bitcoin is hold in private wallet - page 2.

danadc

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Quote from: Tony116 on December 11, 2022, 09:26:13 PM

Quote from: OcTradism on December 11, 2022, 08:54:40 PM

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Exchanges may have hard their bad influence on the cryptocurrency industry most especially the centralized exchange who has been nothing but tools in the hands of regulators and CEOs who act unilateral against the customer's will and have 100% control over the balance on the exchange.

Governments do their jobs by keep most of things in their control but I disagree to say centralized exchanges are tools of regulators and governments. Before stricter regulations on cryptocurrency market, we don't have enough evidence to make this conclusion.

I also disagree with the idea that exchanges have a bad influence on the crypto industry. We cannot deny that centralized exchanges have made a great contribution to helping users to access the market easily, they provide us with a lot of necessary services in the market. I firmly believe that most of the new investors entering the market come through centralized exchanges which are an easy place to start for newbies if they want to get bitcoins quickly and securely.

Maybe bitcoin holders don't need an exchange, but the crypto market certainly does, and exchanges are an important part of the market.

The exchanges are businesses that cannot be closed and they have to live at the expense of whatever happens in the world, it is the easiest way for people to move their money, but it is a safer way than making movements from a bank The bad thing that I have seen is that the exchanges that are more reliable are centralized and have many KYC requirements that do not please and that makes the control much stronger, and crypto with control that does not match, the recent events with FTX It was the trigger that was expected so that everyone would not hesitate to move their money to their private wallet, it is the safest way to have the money.

Jawhead999

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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.

Iroh

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Quote from: Tony116 on December 11, 2022, 09:26:13 PM

Quote from: OcTradism on December 11, 2022, 08:54:40 PM

Quote

Exchanges may have hard their bad influence on the cryptocurrency industry most especially the centralized exchange who has been nothing but tools in the hands of regulators and CEOs who act unilateral against the customer's will and have 100% control over the balance on the exchange.

Governments do their jobs by keep most of things in their control but I disagree to say centralized exchanges are tools of regulators and governments. Before stricter regulations on cryptocurrency market, we don't have enough evidence to make this conclusion.

I also disagree with the idea that exchanges have a bad influence on the crypto industry. We cannot deny that centralized exchanges have made a great contribution to helping users to access the market easily, they provide us with a lot of necessary services in the market. I firmly believe that most of the new investors entering the market come through centralized exchanges which are an easy place to start for newbies if they want to get bitcoins quickly and securely.

Maybe bitcoin holders don't need an exchange, but the crypto market certainly does, and exchanges are an important part of the market.

Exchanges like every other business is there for the business and also to make profits. They’re not necessarily a bad influence in the cryptocurrency industry. They have also got their uses in helping users buy and sell crypto assets. Some individuals today first heard, accessed and bought bitcoin through an exchange.
Although it has been reiterated countless times about how dangerous it is to leave your coins on the exchanges after purchase, people still feel somewhat comfortable leaving their coins there which is not too good.
Overall, I think exchanges have got a role to play in the adoption and growth of bitcoin and can’t be thrown aside.

Tony116

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Quote from: OcTradism on December 11, 2022, 08:54:40 PM

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Exchanges may have hard their bad influence on the cryptocurrency industry most especially the centralized exchange who has been nothing but tools in the hands of regulators and CEOs who act unilateral against the customer's will and have 100% control over the balance on the exchange.

Governments do their jobs by keep most of things in their control but I disagree to say centralized exchanges are tools of regulators and governments. Before stricter regulations on cryptocurrency market, we don't have enough evidence to make this conclusion.

I also disagree with the idea that exchanges have a bad influence on the crypto industry. We cannot deny that centralized exchanges have made a great contribution to helping users to access the market easily, they provide us with a lot of necessary services in the market. I firmly believe that most of the new investors entering the market come through centralized exchanges which are an easy place to start for newbies if they want to get bitcoins quickly and securely.

Maybe bitcoin holders don't need an exchange, but the crypto market certainly does, and exchanges are an important part of the market.

OcTradism

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Quote from: Wiwo on December 11, 2022, 02:51:07 PM

You have a point and I hope the ops will look I to that direction and come to a conclusion that Bitcoin can not witness the adoption we glamour for if it doesn't have to go through exchanges, we can not underestimate the place of exchange for crypto access

People have many choices to trade bitcoins with centralized exchanges, decentralized exchanges and peer-to-peer trading platforms.

Because we don't trade bitcoin daily or trade it too more often and there are hodlers who will let their bitcoins intact for a while some time. It is important to have good bitcoin wallets to store our bitcoins.

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the exchange has made access to Bitcoin fast and easy even in a restricted region exchange allow Bitcoin p2p trading which allows newbies have direct access to the bitcoin market.

Peer to peer trading can give us more freedom but it contains more risk, more chance to fall in scam trading so knowledge and experience to choose good trade partners to trade with is very important.

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Exchanges may have hard their bad influence on the cryptocurrency industry most especially the centralized exchange who has been nothing but tools in the hands of regulators and CEOs who act unilateral against the customer's will and have 100% control over the balance on the exchange.

Governments do their jobs by keep most of things in their control but I disagree to say centralized exchanges are tools of regulators and governments. Before stricter regulations on cryptocurrency market, we don't have enough evidence to make this conclusion.

ilovealtcoins

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Bitcoins are held in the wallet and all do nothing but hold in the wallet then bitcoins will become garbage, this is a silly idea. The market exists because of transactions, thanks to transactions that solve supply and demand, thereby promoting bitcoin development. If people try to buy bitcoin and throw it in their wallet and there is no transaction in the market, where is the market going and what is the purpose of holding bitcoin as it is just to see.

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Quote from: Artem Sereda on September 07, 2022, 10:44:43 AM

Exchanges earn on trading, not storage. In theory, if everyone keeps a minimum of coins, the exchange will not be able to offer a-booking merging trading services, but in practice, they will still have a reserve for this.

exactly! and people always need to do their trading because for various reasons such as earn profit, need for another alt, converting their crypto to their fiat, avail other financial services such as staking, flexible savings and others. so yes, exchanges are not here for storage purposes. this is why it will continue to exist just like the regular forex stations.

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Quote from: 2stout on August 09, 2022, 11:34:07 PM

Yeah, but this is a hypothetical that won't happen. As much as most abhor CeFi, there will always be a place for it in terms of newbies, arbitrage, and establishing markets which in turn helps establish value, liquidity, and adoption.

You have a point and I hope the ops will look I to that direction and come to a conclusion that Bitcoin can not witness the adoption we glamour for if it doesn't have to go through exchanges, we can not underestimate the place of exchange for crypto access, the exchange has made access to Bitcoin fast and easy even in a restricted region exchange allow Bitcoin p2p trading which allows newbies have direct access to the bitcoin market. Exchanges may have hard their bad influence on the cryptocurrency industry most especially the centralized exchange who has been nothing but tools in the hands of regulators and CEOs who act unilateral against the customer's will and have 100% control over the balance on the exchange.

Artem Sereda

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Exchanges earn on trading, not storage. In theory, if everyone keeps a minimum of coins, the exchange will not be able to offer a-booking merging trading services, but in practice, they will still have a reserve for this.

Captain Corporate

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Quote from: TheUltraElite on August 11, 2022, 09:48:52 AM

The idea is that there must be bunch of exchanges that hold a certain amount of bitcoin, but say they are holding more. Meaning, if every single person withdrew, then they wouldn't have enough, multiply that with bunch of other altcoins as well and you got yourself a big trouble. We had something like that back in Turkey, there was a place that offered basically free coins (rewards for doing stuff) and I think it was either doge or something similar, it supposed to be rewards. They put that in peoples accounts, those people traded etc etc and in the end they didn't had any coins to give, and the price of it went super high. This resulted with them just running away from the nation and leaving everyone hanging.

JayTrain

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this is the golden rule of any trader holding bitcoin, because there is an exchange today, and tomorrow they can hack or even better "hide behind the horizon" the best way is to keep bitcoin on a short leash, namely on your personal or hardware wallet, where people you don't know will not be able to dictate storage conditions to you, etc.

TheUltraElite

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So anyway, I applied as a merit source :)

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.

Okay, but how does that affect what you wrote in the title?

Exchanges dont thrive on the money kept on their hot wallets, but from the fees taken from the users and also from the margin and leverages. So your title makes no sense in this regard.

People in this forum though understand this concept but you have to realize that the number of users in this forum is only a small part of the total userbase served by an specific exchange.

Now if you are idea is that exchanges thrive because they "exit scam" their users, then I would disagree and ask you to get a life.

BobK71

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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.

Placing your assets in any exchange means that you are depositing your assets with someone else. If you face any type of security problem then of course you can keep that asset in your personal wallet but I think if the asset is not a big amount then there will be no problem. You can keep it in any popular exchange.

TribalBob

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bitcoin is stored in a personal wallet, I think it is a must for every owner of bitcoin and other altcoins if the amount is large, but if it's only 10-100$ I think it's still safe to store on the exchange, and I don't think the exchange will go out of business if the trading volume still being done, because there are a lot of transactions on each exchange not just bitcoins (just my opinion)

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Quote from: Fortify on August 02, 2022, 01:58:37 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.

Why even bother to post, what do you think you're sharing with the Bitcoin community that we don't already know? Maybe such "wisdom" might be reserved for the newbie section but you can already find dozens of similar recitations over the last few pages of threads in here. Maybe if you gave a few examples of recently failed crypto exchanges then it might emphasize the fact to people but frankly the average user of Bitcoin just wants simplicity and a reasonable level of security. Not everyone is technically literate and if we want Bitcoin to have the widest adoption possible we need to embrace the fact that many people want an easy to access online service similar to existing platforms like Paypal.

This is a forum and everyone has a right to share their thoughts, that’s why we are all here. It means, if 100 people say the same thing on a topic, the 101th could say the same thing showing support to the other 100 people as well. It may not be a new thing, but it does show the support for the old thing that has been posted already.

I am not saying that it is not annoying, you could find it annoying and I get that, there is no problem with that. However, people here do not have a duty to make sure that you are not annoyed by reading the same thing, it is not their job, they can write whatever they want as long as it is allowed by the forum rules.

pawanjain

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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.

Yes ofcourse that is true but even if all bitcoins are stored on non-custodial wallets it still doesn't mean that exchanges will go out of business.
Remember, there are altcoins as well which holds around 60% of the marketcap. Even if 50% of them are on exchanges then it is still a huge amount to be handled by the exchanges.
So exchanges are here to stay. Besides that, there are traders who actively trade on exchanges so liquidity will definitely be on the exchanges.

tjtonmoy

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Some days back, i got hacked on my wallet (trust wallet). Then I transferred my funds in other wallet and also, half to the binance exchange. After reading this, somehow I don't feel safe now to hold those funds in my exchange account. Gotta get myself a hardware wallet.

Wiwo

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Exchanges despite being an unsecured way to store your assets still house millions of coins and billions of wallets put together and that's a significant number, saying exchange will go out of business is same as you saying we are closing the door to cryptocurrency trading because exchanges still serve as the major known way to exchange one crypto to another. Even though Satoshi has p2p in mind as mode of trading bitcoin, we should also know that p2p is kind of hard this day, since some countries already declare cryptocurrency illegal so p2p is not publicly encouraged and users have to move to exchange to transact with other users.

Findingnemo

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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.

Imagine cryptocurrencies took over the complete monetary system of this world then still these exchanges will exist because for people to make crypto to crypto conversion in the p2p level is not really convenient when it comes to large funds involved so exchanges will keep making money but the one thing is exchanges are for trading one to another not really meant for the storage purpose even if you are going to take an off from trading activities then it is really important to move the funds stored in exchanges to your actual wallet.

2stout

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Yeah, but this is a hypothetical that won't happen. As much as most abhor CeFi, there will always be a place for it in terms of newbies, arbitrage, and establishing markets which in turn helps establish value, liquidity, and adoption.

Topic: Exchange will go out of business if every Bitcoin is hold in private wallet - page 2. (Read 836 times)