They are serving different purposes. You can store your coins in your own self-hosted wallet but use centralized exchange to buy or sell coins. If people would take idle coins away from exchanges, it won't affect them at all. 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.
Topic: Exchange will go out of business if every Bitcoin is hold in private wallet - page 5. (Read 765 times)
July 31, 2022, 06:27:43 PM
July 31, 2022, 06:24:16 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.
Also, you don't own it on exchanges because you don't have the private keys. That's the basic rule that everyone will have to realize when they see many exchanges are getting rekt by their own behavior and as well as by the bear market. So remember the popular quote:Quote
Not your keys, not your coins
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.
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