Exchanges won't go out of business because people will still need them to transact. Also, traders are a big group among bitcoin users. These people will not resign from their trade just like that. Last but not least, exchanges often trade multiple coins, not only bitcoin. If almost all bitcoiners become holders, exchanges will only lose a part of their profits.
Most people already hold coins outside exchanges. I've seen an estimation that less than 4 million bitcoins is held on exchanges and the rest is in private wallets
Topic: Exchange will go out of business if every Bitcoin is hold in private wallet - page 4. (Read 842 times)
August 01, 2022, 10:14:19 AM
August 01, 2022, 09:04:46 AM
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. 
August 01, 2022, 08:34:35 AM
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.
This statement is half true! Exchanges will never go out of business if the holders choose to keep it in their private wallet. After couple of multi million dollar hacks, people have learnt the lesson and started keeping their bitcoins in their private wallet. But they still need a place when they would want to exchange it or trade with it. P2P is not the only mode of exchange needed. A good percentage of people also trade to earn money to support their day to day expense.
So people are getting smarter for sure but that doesn't nullify the requirement of an exchange. Yes, some small exchange may go out of business but some big ones will still be kicking.
August 01, 2022, 08:24:31 AM
You are confusing 2 different concepts.
1. Is to store your coins with custodial services such as centralized exchanges.
This obviously is stupid and nobody should ever do this and if they are doing it right now, they should move their coins from those services out to their own wallets.
2. Is to use centralized services such as exchanges.
This is fine, they are simply providing a service and as long as you are aware of pros and cons of using said services (eg. lack of privacy, high risk of being scammed by the exchange, etc. versus convenient trading, high liquidity, fast trading, etc.) I don't see any problem with using these services or having some coins there during the time you are using them.
This is the main reason why these services exist and would never go out of business.
1. Is to store your coins with custodial services such as centralized exchanges.
This obviously is stupid and nobody should ever do this and if they are doing it right now, they should move their coins from those services out to their own wallets.
2. Is to use centralized services such as exchanges.
This is fine, they are simply providing a service and as long as you are aware of pros and cons of using said services (eg. lack of privacy, high risk of being scammed by the exchange, etc. versus convenient trading, high liquidity, fast trading, etc.) I don't see any problem with using these services or having some coins there during the time you are using them.
This is the main reason why these services exist and would never go out of business.
August 01, 2022, 05:00:35 AM
This will never happen because there will always be more gamblers/traders than long term investors. He exchanges are casinos and the traders are gamblers. The casino/house will never go out of business because they will never run out of gamblers.
It is sad but also the truth.
Crypto itself being used as casino tokens in (real) online casinos and that’s crypto’s best and most used feature.
It is sad but also the truth.
Crypto itself being used as casino tokens in (real) online casinos and that’s crypto’s best and most used feature.
August 01, 2022, 04:52:41 AM
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.
Any reliable source for this? Because I believe the opposite is what's happening.to help you out
there are under 90m UTXO's meaning under 90m separate allocations of bitcoin
there are 43m funded addresses (multiple utxo sent to same address)
meaning there are under 90m people holding funds independently
https://www.blockchain.com/charts/utxo-count
yet exchanges have UTXOs of over 100k coin allotments that represent millions of users.
https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html
whereby exchanges have more then 90m user accounts on their registry
https://www.coinbase.com/about (98m+ verified users) at time of posting
(many other exchanges, many other user account numbers)
also compare the top 3 categories of coin held (adddresses over 100k, 10k-10k, 1k-10k)
this is from 2018
100k+:463k
10k-100k: 3.05m
1k-10k: 3.591m
(total 7.104m held by large custodians/whales)
~
and this week https://bitinfocharts.com/top-100-richest-bitcoin-addresses.html
100k+: 779k
10k-100k: 2.208m
1k-10k: 4.925m
(total 7.912m held by large custodians/whales)
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..... 
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.
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.
August 01, 2022, 04:23:12 AM
Using centralized exchanges such as Kucoin, Binance, Huobi is what you need to do to make the most of trading. More comfortable and attractive User Interface. Not only that, some of the features provided by centralized exchanges such as P2P transactions to convert crypto to Fiat or convert to official currencies are very much needed. People may store their personal assets in personal wallets, but for trading of course they must use a centralized exchange. Exchanges won't go bankrupt just because some people keep their assets in private wallets, what keeps exchanges going bankrupt is hacking, as was the case with major exchanges in the past.
August 01, 2022, 03:55:45 AM
Exchanges shouldn't be a place where people store their coins. It is risky, the coins aren't really yours, an exchange can force KYC or freeze assets when it believes your activity is suspicious. Less likely with big exchanges but still possible: an exchange can be hacked or you can become a victim of selective scamming.
So it's great if more people are learning to store coins in their own wallets.
But for trading, exchange is still a must. For selling one crypto for another or for fiat, you'll also most likely need an exchange.
Like others said, the purposes are quite different.
So it's great if more people are learning to store coins in their own wallets.
But for trading, exchange is still a must. For selling one crypto for another or for fiat, you'll also most likely need an exchange.
Like others said, the purposes are quite different.
August 01, 2022, 03:09:01 AM
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.
There’s no way everyone will hold Bitcoin until the price skyrocket on an insane price level because everyone here once profit and we have different buying price level. Exchange is what makes Bitcoin alive because its the only way to transfer Bitcoin to a new holder. Without them, We are just bunch of holders that doing a barter exchange on our own. Exchange is an important part of Bitcoin market.
August 01, 2022, 03:07:35 AM
That's just wishful thinking. Using centralized exchanges to buy and sell bitcoin/crypto is simply just super convenient that I totally doubt the masses are going to use the likes of Bisq(unless they totally ramp up their UI/UX).
August 01, 2022, 03:01:17 AM
Exchanges are risky and fraudulent must time and go by recent happening, exchanges should just be used for small trading and exchanges of coins. We can not outrightly write them off because the excanges provide vital services.
August 01, 2022, 02:59:51 AM
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.
No, your argument is wrong, the purpose of CEX is just a trading platform simple as that. So obviously, if you are not trading and holding your bitcoin you won't keep it with them. But they can still perform as design, it can be used to buy/sell by other crypto traders, and the market is open 24x7, so somewhere in parts of the world, there will be buyers and sellers and so the CEX will continue to exists even though the numbers of bitcoin in an exchange is going down. And on the contrary, others may say that it is a bullish sign that bitcoiners are holding it on their wallet.
August 01, 2022, 02:01:57 AM
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.
Just want to remind you buddy, the centralized exchange is different from the private wallet you have like cold wallet, for example if the coin you hold is Bitcoin, I don't see anything wrong if you put bitcoin in the exchange and in the private wallet like hot or cold wallet. Their only difference is that in the cold wallet you have the 100% full control to your Bitcoin, unlike in the exchange where it is centralized is not 100% due to there is a KYC needed just so that the assets you have in their platform. But you should always find out and thoroughly investigate the exchange you are going to put your money into and one of the best and safest is the Binance exchange, this platform has been tested and is one of the biggest exchanges in the world in this industry of cryptocurrency.
August 01, 2022, 01:43:53 AM
I don't think they will go out of business because most coins will be held in private wallets. Other cryptocurrencies can be traded with BTC or those willing to sell their BTC. It's going to be that simple, TBH. Exchanges probably have their cold wallets for their liquidity. Knowing BTC is the leading crypto, they would have lots of it if users withdraw.
August 01, 2022, 01:38:34 AM
my answer is no
i know there is some scam exchange and exchange that goes bankrupt or exchange that been hacked but in not gonna out of business because many people save it on private waller. the centralized exchange still needed even if all bitcoin in private wallet there is other coin and token that keep support the exchange.
i know there is some scam exchange and exchange that goes bankrupt or exchange that been hacked but in not gonna out of business because many people save it on private waller. the centralized exchange still needed even if all bitcoin in private wallet there is other coin and token that keep support the exchange.
August 01, 2022, 12:04:07 AM
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.
This is doesn't make any sense. Do you mean that you send fake Bitcoins when you move your BTC from a crypto exchange or when you use a Lightning Network wallet? I'm not a fan of crypto exchanges, but I don't think that they are "the root of all evil" so there's no need to criticize them for everything bad in the cryptocurrency industry. Crypto exchanges have helped a lot for the adoption of cryptocurrencies.
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.
July 31, 2022, 05:51:53 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.
Any reliable source for this? Because I believe the opposite is what's happening. Centralized exchanges are growing fastly and more and more customers are using their services. I agree with you that storing bitcoin in your own non-custodial wallet is safer than keeping them on an exchange and it's the right thing to do but good luck convincing newbies with that.
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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.
Centralized exchanges keep most of the coins on their cold wallets and all the exchanges/trades you make aren't on-chain transactions. They just update the numbers of coins you are supposed to own on their databases. And you are right, there is no guarantee that they actually have those coins until you withdraw them to an external wallet. 
July 31, 2022, 05:36:47 PM
Centralised exchanges are just one route to buying and selling coins - there are a few others that'll keep the market running if cexes all disappear (even though that's unlikely).
Taking idle funds from exchanges does mean they're unable to risk your funds to improve their own strategies in some cases and may effect how much they think they have in available assets to spend (but realistically, both of these shouldn't matter to you as they're not going to properly pay you for the shared burden).
Taking idle funds from exchanges does mean they're unable to risk your funds to improve their own strategies in some cases and may effect how much they think they have in available assets to spend (but realistically, both of these shouldn't matter to you as they're not going to properly pay you for the shared burden).
July 31, 2022, 05:36:36 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.
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