How would crypto fare without centralized exchanges? - page 5.

Argoo

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Quote from: DeathAngel on March 25, 2022, 03:33:01 PM

I think it’s quite clear that without the big, well known, centralised exchanges then crypto wouldn’t be as successful & mainstream as it currently is. Governments would probably have cracked down & shut down exchanges that didn’t comply with their annoying KYC & AML rules.

Of course, the relationship between states and cryptocurrencies will constantly change. The great popularity of cryptocurrency among the population of almost all states is a good guarantee that civilized countries will not prohibit the use of cryptocurrency. But the conditions of her walking will change until the optimal middle is established.

Cryptocurrency exchanges will be forced to work on the terms of the states at the place of their registration and location. Many discussed the fact that Binance refused to block Russian accounts. Now the head of one of the pro-Russian parties in Ukraine, Shariy, complains that, at the request of Ukraine, Binance blocked his cryptocurrency on this exchange. At the same time, the exchange provided Ukraine with all the information about itself, including all codes for managing cryptocurrency.

Abiky

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Quote from: Xal0lex on March 29, 2022, 04:34:38 PM

Of course, there is no 100% guarantee that this will not happen, but I am sure that if major countries block exchanges and cryptocurrency, following the example of China, these exchanges will simply open under new jurisdictions and continue to operate. It is impossible that absolutely the whole world is against cryptocurrencies. Cryptocurrencies are a business and it is bound to benefit someone in this world. The crypto industry is mobile. Remember how miners simply changed their location after the ban, the same will happen to exchanges. Yes, the market will be shaken by such bans, but after exchanges reopen in other places, the market will start to recover, just like the hash rate recovered after the Chinese ban. It is impossible to ban cryptocurrency completely.

If governments unanimously rely on a "One World Currency", then it's probable they will ban crypto altogether. But it's very unlikely we'll ever see such a unified currency, since countries can't reach a common agreement. As long as this is the case, it will be impossible to ban crypto for good. Even if they did, crypto will still survive thanks to its decentralized and censorship-resistant design. Centralized exchanges only constitute a small portion of the crypto ecosystem, as the rest is dominated by miners, stakers, and even decentralized exchanges themselves.

What matters here is decentralization. With it, crypto will be able to stand the test of time regardless of a government crackdown or ban. Who knows if crypto lives alongside Fiat for generations? Just my opinion

Xal0lex

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Quote from: Abiky on March 28, 2022, 08:36:17 PM

Never say never since governments are capable of doing anything in order to avoid losing power in the long run. Banning centralized exchanges altogether would be the ideal strategy to diminish crypto usage within the country. China did ban centralized exchanges with success, so it's probable other countries will do the same if they feel crypto threatens their economies. Without centralized exchanges, I guess developers will focus more on improving decentralized exchanges' performance. Liquidity for DEXs will surely increase as people pour money like crazy in these platforms.

While the total ban of centralized exchanges won't destroy crypto completely, it will certainly have an impact over its mainstream adoption. Market prices will probably go down the drain as most big investors will be afraid to join the crypto/Blockchain space. But Blockchains themselves won't disappear because of their decentralized and censorship-resistant design. Who knows what the future holds for the entire crypto/Blockchain industry? Just my thoughts Grin

Of course, there is no 100% guarantee that this will not happen, but I am sure that if major countries block exchanges and cryptocurrency, following the example of China, these exchanges will simply open under new jurisdictions and continue to operate. It is impossible that absolutely the whole world is against cryptocurrencies. Cryptocurrencies are a business and it is bound to benefit someone in this world. The crypto industry is mobile. Remember how miners simply changed their location after the ban, the same will happen to exchanges. Yes, the market will be shaken by such bans, but after exchanges reopen in other places, the market will start to recover, just like the hash rate recovered after the Chinese ban. It is impossible to ban cryptocurrency completely.

Abiky

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Quote from: Marvell1 on March 25, 2022, 11:52:21 AM

The majority of users today prefer low transaction fees and being able to trade multiple currency pairs on one platform and we can convert to fiat quickly. I think this is the reason CEX is still popular.
Decentralized exchanges are still heavily restricted, but if centralized exchanges close completely, then developers will focus on developing and promoting the entire decentralized exchange to in line with market needs.
But the hypothesis that the entire CEX is banned is almost impossible. Instead of the government against, the government will make strict regulations or through CEX the government can control our transactions.

Never say never since governments are capable of doing anything in order to avoid losing power in the long run. Banning centralized exchanges altogether would be the ideal strategy to diminish crypto usage within the country. China did ban centralized exchanges with success, so it's probable other countries will do the same if they feel crypto threatens their economies. Without centralized exchanges, I guess developers will focus more on improving decentralized exchanges' performance. Liquidity for DEXs will surely increase as people pour money like crazy in these platforms.

While the total ban of centralized exchanges won't destroy crypto completely, it will certainly have an impact over its mainstream adoption. Market prices will probably go down the drain as most big investors will be afraid to join the crypto/Blockchain space. But Blockchains themselves won't disappear because of their decentralized and censorship-resistant design. Who knows what the future holds for the entire crypto/Blockchain industry? Just my thoughts Grin

CaVO32

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Quote from: Xal0lex on March 28, 2022, 03:38:33 PM

Quote from: Abiky on March 18, 2022, 12:18:29 PM

What are your thoughts? Huh

This is unlikely to happen. It makes more sense to ban cryptocurrencies themselves than centralized exchanges. Imagine a situation where the government saw a threat in food products and banned stores that sell those products. Why? Wouldn't it be easier to ban the food itself? With the level of legalization of cryptocurrencies and the acceptance of cryptocurrency in general, a move like a complete ban on exchanges would be extremely illogical. After all, if you ban exchanges, there will be other ways to sell cryptocurrencies, and decentralized exchanges can also be banned, because they also act under someone else's jurisdiction.

In simple words, banning centralized exchanges is slightly less stupid than banning bitcoin. There is already too much money involved in the industry and too much infrastructure built for governments to take such stupid steps.

You have good logic about this case. Why not ban the usage of crypto itself if they will ban the platforms that are utilizing it? So nope, I am not seeing this happening. A lot of countries are already changing their stance towards crypto because even if they don't participate in this market, this continues to thrive. And they are already seeing it at a global scale. So why ban it if they can generate money from this industry?

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It will function completely fine. And besides, most big exchanges already require KYC so most people don't bother using them.

The stablecoin ecosystem alongside the amount of DEX's have made it extremely accessible for people to start using crypto without ever having to sign up for a centralized exchange.

This is why you see a lot of hype around AMM projects whenever they come out. Certainly not too late to get in.

Xal0lex

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Quote from: Abiky on March 18, 2022, 12:18:29 PM

What are your thoughts? Huh

This is unlikely to happen. It makes more sense to ban cryptocurrencies themselves than centralized exchanges. Imagine a situation where the government saw a threat in food products and banned stores that sell those products. Why? Wouldn't it be easier to ban the food itself? With the level of legalization of cryptocurrencies and the acceptance of cryptocurrency in general, a move like a complete ban on exchanges would be extremely illogical. After all, if you ban exchanges, there will be other ways to sell cryptocurrencies, and decentralized exchanges can also be banned, because they also act under someone else's jurisdiction.

In simple words, banning centralized exchanges is slightly less stupid than banning bitcoin. There is already too much money involved in the industry and too much infrastructure built for governments to take such stupid steps.

DOH!

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Relying on CEX is putting crypto users on a high-risk precedent from government regulation. It may suffer from that but the DEX is completely independent. From that point of view, I think DEX is the future of trading. Currently, DEXs are quite diverse and also develop separate financial ecosystems such as staking, lending, borrowing, etc. or margin trading, but clearly, the market is not ready to do this yet. there. Cex is still an important thing to the development of the market today.

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Quote from: Abiky on March 18, 2022, 12:18:29 PM

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts? Huh

Even if the governments of all the countries will announce crypto is illegal and if will ban all the centralized exchanges, i don’t see anything very scary here because we have another alternative option is Decentralized exchanges, So that i think it will not be big impact on the market. But it’s true that, we will face some difficulties without CEX, as like DEX (ERC-20) is very expensive in case of gas fees which will not be fair for the all users who's small traders.

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Quote from: Abiky on March 18, 2022, 12:18:29 PM

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts? Huh

I agree it will drop the price and have a big impact. but will not make crypto die. if there is no CEX, we still have DEX and there is no way the whole country will ban it. although later the fee will be more expensive, but it will be a way for crypto not to depend on a centralized system like today. but back to the discussion, this is just a possibility that will not become real. due to the fact that today there are more countries that are more open and willing to accept crypto than reject it.

BioFrog

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Crypto are already popular if governments were to ban them and close centralized exchanges in my opinion there would be no problem anyway there are always interpersonal changes, face to face, or sites where you can buy coupons for online services

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Quote from: Doell on March 25, 2022, 11:59:33 AM

I think Centralized exchange is the core of the community on the world side, however the government will not be able to curb people freedom to keep using crypto, maybe crypto will fall in price if the government imposes a ban to centralized exchanges. However, this situation may not be happen because the government is there for the people, not the people for the government. Although the future no one knows but as far as I know the government can't raise its his wish to make the people unhappy.

Are you trying to say that there is no possibility that the government will or can ban cryptocurrency? In a lot of countries we have already seen the government take such an action and banned cryptocurrency exchanges from their country and also the use or buying and selling of cryptocurrency.

So, the government in any country can do such a thing but there are still the ones who do understand what cryptocurrency is all about and they see that there is the need for it so they decide not to ban it and allow their citizens to make use of it. Some of them then go as far as having regulations for cryptocurrency trading and also expect their citizens to pay tax for cryptocurrency.

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Quote from: Abiky on March 18, 2022, 12:18:29 PM

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts? Huh

If something like this where to happen in the future, I think it will give rise to more dex, like the attention will now be on how to create more dex suitable for all users, it is because of the existence of cex that dex are not given the much needed attention. Such situation will affect crypto for some time but once there are enough dex to provide services and take cex place everything will go back to normal and government will have little or no control then.

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Quote from: Abiky on March 18, 2022, 12:18:29 PM

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

That will be the biggest conflict if ever that happened. Most users will likely complain but I doubt government will do this, as some of them are actually into crypto as well. Its gonna be a long fight whether crypto become illegal, a lot of personalities and even big names are trading it. They could arrange some regulations and rules for it. But totally removing it? Its so impossible to happen.

kojektea

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Without centralized exchange cryptocurrency can still run because of decentralized exchange,
now we are in DeFi era, many dex swaps like Uniswap, Sushiswap, Justswap, Pancakeswap, we can use it to do exchange.
But there is a weakness that I see, because it is a dex swap, we can't determine the price we want, and we always depend on liquidity,
even if the transactions are usually quite expensive, such as slippage + approve fees.

Coin BTC

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I think, this possibility is rather impossible, even if it happens that the exchange is banned, then the owner of the central exchange will definitely create such a thing as a decentralized exchange that can work as effectively and efficiently as possible, and it can also be said that the centralized exchange is one of the important tools for the world community, and the government cannot stop people from continuously using crypto.

according to what I see from its development, in the future, it seems that many countries will allow these coins or what is called crypto, and maybe in the future if problems occur none other than the following problems, the first problem with decentralized exchanges will be problems in volume and fees, and the other problems in decentralized exchanges will lie in trust.

kaseygriffin

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if this happens then it's really a big risk for users on that CEX.

I find that the security or guarantee of freedom for users has always been clearly stated on the regulations,

so the easy tie between each other will sometimes take time to solve the CEX and users.

asyakashi

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I think without a centralized exchange cryptocurrency is just a code of money to be used for evil.
Actually this has been happening for a long time, before centralized exchanges were not well known, they would transact with bitcoin on black markets such as the deep web or dark web.
They would probably exchange money manually without a central exchange, of course it would only cost a transfer transaction, but it was quite cumbersome compared to using a centralized exchange.
Moreover, if all governments ban the circulation of cryptocurrencies so that there are no more centralized exchanges, it is likely that bitcoin will soon disappear from society.

robattfield

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Quote from: fzkto on March 26, 2022, 05:07:20 AM

Quote from: robattfield on March 26, 2022, 04:36:10 AM

~snip~

If you are talking about simply buying cryptocurrency to then store it in your personal wallet, there is not much difference between buying on a centralised or decentralised exchange. And if you're talking about additional trading tools like leveraged margin trading or futures, DEX is still very much behind CEX. But I think that will be corrected with time. There used to be no DEX at all, but now there is a huge range of them.

Are you really saying what I have shared? We are talking about the impact it is having on the crypto industry, as today many people are boycotting the denial of contributions from CEX.
You know, in the past, the DEXs we used were illiquid and it was never a preferred option, but times have changed and so have the variety of ways to approach it. So do not say the problem is not related to the main.

kidbounty

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expensive because it will be difficult to trade coins that are on different blockchains. unlike during CEX, which only requires a deposit and trades. if using DEX there are several stages to sell the coins that we have. and plus without CEX we will find it difficult to exchange it with FIAT. so if crypto is banned and the entire CEX is suspended, maybe crypto will have a hard time.

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