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Topic: Exchange will go out of business if every Bitcoin is hold in private wallet (Read 756 times)

legendary
Activity: 2282
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Top Crypto Casino
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.
hero member
Activity: 1246
Merit: 695
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.
legendary
Activity: 4172
Merit: 4341
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
legendary
Activity: 2044
Merit: 1014
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.
sr. member
Activity: 686
Merit: 411
MetaWin.com
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

hero member
Activity: 2828
Merit: 720
Leading Crypto Sports Betting & Casino Platform
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.
full member
Activity: 434
Merit: 143
 
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.
sr. member
Activity: 714
Merit: 383
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.
sr. member
Activity: 504
Merit: 270
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. 
hero member
Activity: 2464
Merit: 586
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.
hero member
Activity: 1400
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Bitcoin is achievement
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.
sr. member
Activity: 546
Merit: 352
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.
legendary
Activity: 2212
Merit: 1046
Leading Crypto Sports Betting & Casino Platform
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.
donator
Activity: 4648
Merit: 4006
Leading Crypto Sports Betting & Casino Platform
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.
full member
Activity: 2450
Merit: 209
Eloncoin.org - Mars, here we come!
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.
newbie
Activity: 35
Merit: 0
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.
legendary
Activity: 2254
Merit: 1338
Buy/Sell crypto at BestChange
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.
hero member
Activity: 574
Merit: 749
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.
member
Activity: 208
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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.
hero member
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Undeads.com - P2E Runner Game
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.
sr. member
Activity: 910
Merit: 290

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.
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.

legendary
Activity: 1596
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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.
sr. member
Activity: 504
Merit: 270

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.
legendary
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★Bitvest.io★ Play Plinko or Invest!

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.
hero member
Activity: 1666
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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.

Quote
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.

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.
sr. member
Activity: 1232
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SmartFi - EARN, LEND & TRADE
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.
legendary
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Leading Crypto Sports Betting & Casino Platform
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.
hero member
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Leading Crypto Sports Betting & Casino Platform
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.
member
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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.
hero member
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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.
full member
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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.
legendary
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Dont be a ShitcoInfluencer for quick bux, it sucks
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.
hero member
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Leading Crypto Sports Betting & Casino Platform
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.
sr. member
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Chainjoes.com
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)
hero member
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www.Crypto.Games: Multiple coins, multiple games
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.
hero member
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Nothing lasts forever
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.
sr. member
Activity: 938
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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.
hero member
Activity: 994
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Leading Crypto Sports Betting & Casino Platform
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.
hero member
Activity: 2268
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Bitcoin = Financial freedom
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.
hero member
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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.
hero member
Activity: 756
Merit: 540
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.
legendary
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Farewell, Leo
But, that's not gonna happen, so I see no point in discussing about it.

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.
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★Bitvest.io★ Play Plinko or Invest!
Quote
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.
hero member
Activity: 1694
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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.
hero member
Activity: 728
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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.
copper member
Activity: 2114
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Building my own Dreams!
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.
sr. member
Activity: 546
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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.
legendary
Activity: 2604
Merit: 1171
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.
hero member
Activity: 2898
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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.
legendary
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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].
hero member
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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.
legendary
Activity: 2632
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Once a man, twice a child!
~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.
legendary
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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.

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
legendary
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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.
legendary
Activity: 2142
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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.
hero member
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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.
legendary
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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.
hero member
Activity: 2786
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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.
member
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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.
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.
legendary
Activity: 2632
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Once a man, twice a child!
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.
legendary
Activity: 2562
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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
hero member
Activity: 756
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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.
legendary
Activity: 3024
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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.
legendary
Activity: 3402
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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.
legendary
Activity: 3052
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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.
legendary
Activity: 4172
Merit: 4341
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)
legendary
Activity: 3388
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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
legendary
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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.
legendary
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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.
hero member
Activity: 1064
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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.
mk4
legendary
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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).
member
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Global peace initiative
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.
legendary
Activity: 2534
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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.
sr. member
Activity: 644
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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.
copper member
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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.
copper member
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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.

hero member
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Merit: 900
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.

legendary
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Top Crypto Casino
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.
copper member
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https://bit.ly/387FXHi lightning theory
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).
hero member
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Bitcoin is achievement
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 is now everywhere and many people knows about it because of it development over different countries. The centralized system of bitcoin is becoming obvious to people because of the rate of cryptocurrency exchange physically. So many people have embrace system of cryptocurrency both for investment and asset ways of generating funds.
legendary
Activity: 2926
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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.

hero member
Activity: 2954
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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:

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Not your keys, not your coins
sr. member
Activity: 546
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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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