Exchange will go out of business if every Bitcoin is hold in private wallet - page 3.

Franctoshi

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Quote from: Ojima-ojo on July 31, 2022, 06:12:49 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 don't think Is gonna possible and happen as you think , we have traders and we have investors people come to exchanges to buy and sell their Bitcoin for several reasons. Exchanges are just like brokers or Banks you can decide to put your money in the bank or decide to keep it in your house but due to the risk involved in keeping it a home many now choose to put it the bank , So same is like the exchanges the risk involved with keeping your Bitcoin in an exchange is bankruptcy and hacks.
However I don't think that there's gonna be a time like that where they all gonna go out of business because people now keep their wallets , So there's always gonna be need for their services and only few will go out of business.

BlackHatCoiner

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But, that's not gonna happen, so I see no point in discussing about it.

Quote from: hatshepsut93 on July 31, 2022, 06:27:43 PM

If people moved all coins out of exchanges, then Bitcoin liquidity would immensely suffer, because every trade on exchange would require two on-chain transactions. That would be a disaster.

Decentralized exchanges (which are the ones you might refer to) do, indeed, require more on-chain transactions than centralized exchanges, but I don't see how's that related to liquidity. As long as there are makers and takers, there will be liquidity, and that's regardless of whether those groups keep it in their private wallet or have a third parties do it for them.

Zanab247

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Quote

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.

Storing Bitcoin and cryptos in a private wallet is definitely the best , with that you know that you're in total control of your funds and have rest of mind because not your keys not your cryptos. Then I dont think it's gonna that possible to entirely do away with centralized exchanges because they are the medium of exchange in this crypto world where people come together to transact, but what could happen with this current situation is that, in the process of more exchanges going bankruptcy it will definitely separate the bad and good ones and we could start seeing massive lay off in the future as a result this.

Yes, you're in control of your Bitcoin and cryptos in your wallet, which it will be difficult for anyone to have access to your wallet without your approval. And you can have access to your wallet as many times you want and your coins is safe and secured in your wallet at the moment without giving your personal details to anybody in the community. Since the price of Bitcoin is too low in the market, it will be favourable to you, if you can leave your coins now in your wallet and wait for the price to go higher in the market before you can sell to make a good profits.

Mauser

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Quote from: Ojima-ojo on July 31, 2022, 06:12:49 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.

Isn't the job of the exchange to match buyers and seller of bitcoins, rather than keeping our coins in a wallet of the exchange? In the stock market it's the exact same thing, you have the big exchanges which provide the infrastructure for trading and matches buyers and seller, and then you have the asset managers and banks which hold the actual stocks for the clients. This is a good system in my opinion and I would recommend anybody to not leave large amounts of coins on an exchange. If you trade regularly and need to send coins to your storage wallet often than maybe it makes sense to leave some coins at the exchange. But I would rather pay a little bit more in transaction fee than facing the risk of losing all my coins if there is an security issue at the exchange. Even if the there are no more coins stored at the exchange than this shouldn't harm the business model of the exchange and threaten them with bankruptcy. As long as people trade with bitcoins the exchange makes money in commission.

Solosanz

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Lol @OP you make me laugh

As a buyer, do you think it's easy to find a seller that will want to trade with you? You wouldn't find it easily since each person want to trade with different currency and different amount, also you need to make sure the seller is trusted enough, if not he would run away with your coins. The same happen if you're a seller that looking for a buyer.

I think you're a user who store your coins on exchanges, well you need to move it to your private wallet.

Nrcewker

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Quote from: Ojima-ojo on July 31, 2022, 06:12:49 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 too agree that when we have our BTCs on a particular exchange, we completely don’t own it.
Nevertheless , yes we can store the Bitcoins in private wallets, but guess what, in order to buy or sell it, we need to use an exchange. So it’s technically not right to say that exchanges will go out of business.
Moreover it completely depends on a user whether to go for exchanges or not. Many people feel using exchanges are more safer as they don’t know the risks that happen to their assets. Let’s see what other people have opinions on this.

Ojima-ojo

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The obvious truth is exchange is not secured for storing Bitcoin, as exchanges take your right to you Bitcoin and give you just a balance on their platform without you holding your Bitcoin in your possession. And if you want to withdraw they charged you exorbitant fees just to discourage you and keep being in control of your Bitcoin. Am not a trader so I don't use exchange and if I want to buy Bitcoin I rather use a p2p.

Fortify

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Quote from: Ojima-ojo on July 31, 2022, 06:12:49 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.

justdimin

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Quote from: Kakmakr on August 01, 2022, 05:41:02 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

I am not really understanding what's wrong with that. I get that you may think that private ownership or "true" ownership may apply some extra layer of security to you, but I do not feel the same way to be honest. I feel like putting your money on a very well trusted place like Coinbase for example, makes it a lot more secure then what the other option was.

I am not saying that it wasn't like that back in the day because the truth is there were times when it was clear to me that private wallet was a lot more secure, but in the past few years the hacking got less, and the security got high and we are having exchanging putting funds in case things like these happen.

NotATether

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Quote from: davis196 on August 01, 2022, 01:04:07 AM

I'm not saying that they are good, they are just "necessary evil". Moving from crypto exchanges to private wallets might make the governments want to regulate private wallets and impose ridiculous rules that are attacking our privacy. You might be forced by the law to disclose all your coins held in cold wallets, otherwise you will be facing a penalty.

They can't regulate private wallets!

The worst they can do is try to regulate cryptography like the aborted attempt by the NSA to ban exporting of PGP and cryptographic algorithms [Those T-shirts with the source code of PGP written on them are antiques, one day I will buy one].

n0ne

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Everyone won't be having the same understanding about the market. According to me, Exchanges were developed for some purpose. Though it is much connected to money making business, it also have got its usage. Everything needs a market and everyone won't go with decentralised platform. So, the usage of centralized platforms are required. Everyone won't be good with technology, for easier access this will help.

What OP think can happen when the entire World starts to operate on bitcoin as the money standard same as that we have USD right now.

Mpamaegbu

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Quote from: RILWAN on August 01, 2022, 04:36:28 PM

Quote from: Mpamaegbu on August 01, 2022, 04:32:33 PM

~snipped~

I dont totally agree with you on this, it is true that ops may have undermine the function of exchanges in cryptocurrency industry but then not exchange activities that drive the price value and scarcity birth price hike, so there is the possibility of price increases when everyone holdle.

How will scarcity give rise to price hike when the scarcity can't be tested by the activities of buying and selling because everyone is hodling. There can only be scarcity when there's a short supply on the market and not when it's not there at all. When it's not there at all, it only means wipe off or complete withdrawal from the market and such doesn't affect price. Hodling in the real sense means you don't want to sell. Now, look at it this way. If everyone stoically refuses to sell at all no matter what, how will there be a price level? No way! You only get to know what price is because people are buying and selling it. If those selling are more in number than those buying, it simply means that price will continually go down. If reverse is the case, it means price will continue upward. That's my little explanation on this.

Slow death

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when you want to buy bitcoin but have fit how do you do it? when everyone wants to buy bitcoin but has Fiat in the bank how will they buy bitcoin without using centralized exchanges? if everyone thinks like you, then how will people day trade? Will people day trade on decentralized exchanges? I doubt it! from what i can see everyday we are going in a direction of centralized things look at mandatory kyc on some exchanges and that is the beginning, the future will be to see kyc is all centralized, you better start conforming early. you will see this.

Quote from: romero121 on August 01, 2022, 06:11:26 PM

For some purpose the need of Exchanges is unstoppable. Through these exchanges different parameters relative to the technology as well as with the market have been taken for valuation. These calibrations are required in predicting the market changes taking place through these exchanges.

OP still don't understand this or he wants to hide and avoid seeing reality, things like decentralization is a thing of the past. with the regulation in this market, we are moving towards more centralization

romero121

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For some purpose the need of Exchanges is unstoppable. Through these exchanges different parameters relative to the technology as well as with the market have been taken for valuation. These calibrations are required in predicting the market changes taking place through these exchanges.

jakelyson

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Quote from: Ojima-ojo on July 31, 2022, 06:12:49 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.

It may be true that bitcoin holders are wising up on where to store their bitcoins. They may now realize that in exchanges, they do not truly own their bitcoins because they do not have private keys. But, this will not throw the exchanges out of business. Exchanges cater to a service that is vital to the adaptation of bitcoin. It is a place where traders make trades and make money. As long as exchanges provide that service, they will stay for a very long time.

It is also the easiest way to onboard newbies in crypto. They can easily convert their money into crypto, and learn how to trade and explore new coins on centralized exchanges. It is the ease of use that will keep the exchanges alive.

Doan9269

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Quote from: Ojima-ojo on July 31, 2022, 06:12:49 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 real, these exchanges do much of evil than good to many users but unknowingly to them, that's why what you don't know you're lacking the foresights of what you're missing out about it, our financial assets were used to run their own business not minding once their own need, but as to many that fail to know this bad lock in using centralized exchange, some don't make use of CEX no matter what the situation maybe, all because they understand the need not to.

Fivestar4everMVP

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I don't think it will ever be possible for every Bitcoin to be held in private wallet, as long as the market exist, there will always be those who want to sell their bitcoin and those who want to buy, this is how and where Bitcoin gets its dollar value from, and this is also where Bitcoin gets the ability to go up and down in price depending on which is higher between buyers and sellers.
If every single bitcoin is withdrawn from the exchange and moved to a private wallet, two things can happen.
1. The price of bitcoin can become really really over expensive due to limited or no supply on exchanges and demand for it, in other words, I call this "fake pump" since the price is not driven by genuine market supply and demand, this can lead to my second point which is..
2. Disaster for bitcoin due to severe price manipulation.

Lanatsa

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Quote from: Ojima-ojo on July 31, 2022, 06:12:49 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.

Basic thing and majority should know this basic since there are still who arent aware of these things which they do still believe that once they do sent out their coins on any centralized platform they do still have the full

control of it which is really a wrong belief imho.Its true that once you dont posses the keys of a certain wallet then dont expect that it would really be 100% and its really hard to think that
exchange platforms would cease to exist considering on the services and convenience that it do gives then it cant really be avoided for you not to make use.
Even though we know its centralized and regulated but still we do choose on using it because we know that we do need something from it.

RILWAN

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Quote from: Mpamaegbu on August 01, 2022, 04:32:33 PM

From the OP it's obvious that the user isn't a trader. No trader can underscore the importance of exchanges (even centralized ones). Exchanges, and not private wallets, are the oil that greases the crypto industry. I've argued it before and will continue to see it that way that Bitcoin or alts derive their price value and evaluation from the activities of sellers and buyers and not from hodlers. If everyone hodls there won't be price value attached to any crypto. That's the simple truth. So, hodling Bitcoin in wallets without trading it doesn't in anyway mean well for Bitcoin. If it does, there wouldn't have been any need for the 10,000btc exchange for two pizzas. Again, there won't ever be exchanges running out of business.

I dont totally agree with you on this, it is true that ops may have undermine the function of exchanges in cryptocurrency industry but then not exchange activities that drive the price value and scarcity birth price hike, so there is the possibility of price increases when everyone holdle.

Mpamaegbu

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From the OP it's obvious that the user isn't a trader. No trader can underscore the importance of exchanges (even centralized ones). Exchanges, and not private wallets, are the oil that greases the crypto industry. I've argued it before and will continue to see it that way that Bitcoin or alts derive their price value and evaluation from the activities of sellers and buyers and not from hodlers. If everyone hodls there won't be price value attached to any crypto. That's the simple truth. So, hodling Bitcoin in wallets without trading it doesn't in anyway mean well for Bitcoin. If it does, there wouldn't have been any need for the 10,000btc exchange for two pizzas. Again, there won't ever be exchanges running out of business.

Topic: Exchange will go out of business if every Bitcoin is hold in private wallet - page 3. (Read 765 times)