The Failure of Exchnages can never be that of Bitcoin.

CryptoBuds

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Quote from: Wiwo on January 10, 2023, 03:02:11 PM

Quote from: harapan on January 10, 2023, 11:58:40 AM

Quote from: davis196 on January 09, 2023, 03:04:28 AM

Quote

Re: The Failure of Exchanges can never be that of Bitcoin.

This statement is valid and has been repeated multiple times on the forum. Repeating it one more time doesn't make it more valid. Grin

It's true that the crypto exchanges exist mostly because of the altcoins, not because of Bitcoin. The original purpose of the crypto exchanges was to be some sort of "financial casinos", where the traders by and sell various "shiny objects", like altcoins, shitcoins, tokens, etc.
The crypto market was crazy speculative and the traders were expecting insane profits out of pump&dump schemes or they were waiting for some altcoin to become "the new Bitcoin".
I'm still a Bitcoin maximalist and I still think that the crypto world doesn't need altcoins and crypto exchanges.

It's good to get you all corrections, the learning continues it's just that people are a bit stubborn and most of this needs to be raised once in a while. For longer visions and for long term holding of Bitcoin, using exchanges will be the biggest mistake one should take.

Your correct, bitcoin main aim is all for self custody and not to be runned by exchanges especially when they are big amount of bitcoins.

Wonderful to see that your bullish on bitcoin, it's all little while we stay discipline and expect the next bull

Exchange to a certain extent provides a very essential service as it relate to the exchange of coins, and a marketplace for cryptocurrencies to be exchanged from one to the other and also a linkage between buyer and seller so the exchange is not only important for altcoin but also important for bitcoin also. Bitcoin could not have gotten the level of exposure and easy access if exchanges are not in operation and at least exchanges make purchases of bitcoin and other altcoins very simple and easy for newbies. But the bad aspect will be when the exchange is used as storage for your funds because you can lose everything since you don't have control over the assets.

As long as bitcoin is not the world currency, then exchange will always be necessary for us, exchange plays an important role in the development of bitcoin. We should not deny the benefits of exchanges just because some are misbehaving.
We will not have any problems as long as we use exchanges wisely and don't abuse them. If we only use them to exchange between bitcoin and altcoin, bitcoin and fiat, and absolutely do not use the exchange to store assets. I believe everything will be fine.

wxa7115

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Quote from: Falconer on January 10, 2023, 03:26:52 PM

Quote from: harapan on January 10, 2023, 11:58:40 AM

It's good to get you all corrections, the learning continues it's just that people are a bit stubborn and most of this needs to be raised once in a while. For longer visions and for long term holding of Bitcoin, using exchanges will be the biggest mistake one should take.

Your correct, bitcoin main aim is all for self custody and not to be runned by exchanges especially when they are big amount of bitcoins.

Exchanges are just intermediary who are actually backing bitcoin to get high buying interest so far. Without a highly reputable exchange, one would not easily spend $1 million buying bitcoin without any escorts or anything to make transactions secure. Then the exchange acts as a bridge between the buyer and the seller, used only as necessary if it is not allowed to be used as a storage.

Fund security in the long term is the responsibility of each fund owner, even though we exclaim here about how the best security solution is, we are always defeated by their inability to realize and understand the risks.

That is the main problem we have with the people making use of exchanges, while exchanging bitcoin directly for products and services requires no middleman, exchanging bitcoin for fiat will without a doubt require one.

However instead of just using exchanges as the middleman necessary to perform the conversion of our coins or our fiat, people are using exchanges as wallets, making them no different than banks, and we have seen many examples through history of banks collapsing and taking their customers with them, so it is not surprising the same is happening here.

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Quote from: Plaguedeath on January 10, 2023, 10:33:52 AM

If you say like that, then Satoshi vision is already achieved since he's think Bitcoin is used as a transaction tool or currency rather than a commodity. Most people prefer to use Bitcoin as a commodity since Bitcoin has high volatility and the price is constantly increase during the 4 year cycle.

If it is only used as a transaction tool? What about the value, the determination of the value will not work if there is no exchange. Where does bitcoin have value from? Imagine if at the moment 10,000 bitcoins are just the same as the price of 1 pizza.

Perhaps its adoption as a currency will also be increasingly difficult because there is no trust. So far, I as a crypto supporter have certainly been happy. It is not banned and recognized as an asset it is already remarkable. If it becomes a currency and its value is stable, perhaps it will also reduce interest in Bitcoin. So I think that during this time Bitcoin can develop is the existence of an exchange market, a rise in confidence.

Fivestar4everMVP

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Quote from: harapan on January 08, 2023, 09:07:04 AM

The bottom line of this all is that the failure of Centralized Exchnages can never be that of Bitcoin which after every bear market has been tested, the cycle continues, gather sats around and be patient for the bull.

You are absolutely correct mate, the failure of exchanges is not the failure of bitcoin, unfortunately, not many people know this, most especially the newbies, we have so many of them in the space currently, who are naïve, ready to believe any negative things told them about bitcoin relating to failed exchanges, i its misconception we all must fight where ever we see it.

Before this exchanges emerged, Bitcoin has been standing and was doing well in its growth and adoption, and even when all the centralized exchanged are no more, Bitcoin will still be standing, I really wonder when I see or hear people call Bitcoin scam because an exchange collapsed and they lost their money, really naïve way of thinking.

Falconer

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Quote from: harapan on January 10, 2023, 11:58:40 AM

It's good to get you all corrections, the learning continues it's just that people are a bit stubborn and most of this needs to be raised once in a while. For longer visions and for long term holding of Bitcoin, using exchanges will be the biggest mistake one should take.

Your correct, bitcoin main aim is all for self custody and not to be runned by exchanges especially when they are big amount of bitcoins.

Exchanges are just intermediary who are actually backing bitcoin to get high buying interest so far. Without a highly reputable exchange, one would not easily spend $1 million buying bitcoin without any escorts or anything to make transactions secure. Then the exchange acts as a bridge between the buyer and the seller, used only as necessary if it is not allowed to be used as a storage.

Fund security in the long term is the responsibility of each fund owner, even though we exclaim here about how the best security solution is, we are always defeated by their inability to realize and understand the risks.

Wiwo

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Quote from: harapan on January 10, 2023, 11:58:40 AM

Quote from: davis196 on January 09, 2023, 03:04:28 AM

Quote

Re: The Failure of Exchanges can never be that of Bitcoin.

This statement is valid and has been repeated multiple times on the forum. Repeating it one more time doesn't make it more valid. Grin

It's true that the crypto exchanges exist mostly because of the altcoins, not because of Bitcoin. The original purpose of the crypto exchanges was to be some sort of "financial casinos", where the traders by and sell various "shiny objects", like altcoins, shitcoins, tokens, etc.
The crypto market was crazy speculative and the traders were expecting insane profits out of pump&dump schemes or they were waiting for some altcoin to become "the new Bitcoin".
I'm still a Bitcoin maximalist and I still think that the crypto world doesn't need altcoins and crypto exchanges.

It's good to get you all corrections, the learning continues it's just that people are a bit stubborn and most of this needs to be raised once in a while. For longer visions and for long term holding of Bitcoin, using exchanges will be the biggest mistake one should take.

Your correct, bitcoin main aim is all for self custody and not to be runned by exchanges especially when they are big amount of bitcoins.

Wonderful to see that your bullish on bitcoin, it's all little while we stay discipline and expect the next bull

Exchange to a certain extent provides a very essential service as it relate to the exchange of coins, and a marketplace for cryptocurrencies to be exchanged from one to the other and also a linkage between buyer and seller so the exchange is not only important for altcoin but also important for bitcoin also. Bitcoin could not have gotten the level of exposure and easy access if exchanges are not in operation and at least exchanges make purchases of bitcoin and other altcoins very simple and easy for newbies. But the bad aspect will be when the exchange is used as storage for your funds because you can lose everything since you don't have control over the assets.

harapan

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Quote from: davis196 on January 09, 2023, 03:04:28 AM

Quote

Re: The Failure of Exchanges can never be that of Bitcoin.

This statement is valid and has been repeated multiple times on the forum. Repeating it one more time doesn't make it more valid. Grin

It's true that the crypto exchanges exist mostly because of the altcoins, not because of Bitcoin. The original purpose of the crypto exchanges was to be some sort of "financial casinos", where the traders by and sell various "shiny objects", like altcoins, shitcoins, tokens, etc.
The crypto market was crazy speculative and the traders were expecting insane profits out of pump&dump schemes or they were waiting for some altcoin to become "the new Bitcoin".
I'm still a Bitcoin maximalist and I still think that the crypto world doesn't need altcoins and crypto exchanges.

It's good to get you all corrections, the learning continues it's just that people are a bit stubborn and most of this needs to be raised once in a while. For longer visions and for long term holding of Bitcoin, using exchanges will be the biggest mistake one should take.

Your correct, bitcoin main aim is all for self custody and not to be runned by exchanges especially when they are big amount of bitcoins.

Wonderful to see that your bullish on bitcoin, it's all little while we stay discipline and expect the next bull

so98nn

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Ahh, we don’t combine these two and should not even care about it. Considering the fact that we lost billions of dollars from the exchangers, we should keep that matter as it is and to the door steps of exchangers. It’s just making the bitcoin look worse because whenever some Hack happens, they will say bitcoin were stolen, this much worth bitcoin lost, this much worth bitcoins are in the possession etc etc. These are the statements we would hear in the negative way and make it go down. Hope so we don’t make it obvious to connect the two all the time.

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Quote from: Plaguedeath on January 10, 2023, 10:33:52 AM

Quote from: Luzin on January 10, 2023, 10:10:21 AM

It is hard to imagine if the exchange does not exist. Perhaps Bitcoin will simply become a transaction tool. Perhaps Bitcoin will not have the value it is today and they will not develop into a commodity.

If you say like that, then Satoshi vision is already achieved since he's think Bitcoin is used as a transaction tool or currency rather than a commodity. Most people prefer to use Bitcoin as a commodity since Bitcoin has high volatility and the price is constantly increase during the 4 year cycle.

I would say Bitcoin wouldn't become a currency if there's no exchange accept Bitcoin, because Bitcoin is still not get controlled by one party and due to low adoption, I don't think people will want to use it as a currency since they worried if Bitcoin has no value.

Expecting bitcoin to become a currency can be said to be increasingly remote because most of us are looking at it as a commodity, an investment to make a profit. I'm pretty sure people will be disappointed and lose interest in it if it stops being volatile. What we want is not a decentralized, anonymous currency, what we want is bitcoin profits.

What the OP said is not wrong, the failure of the exchanges would never have caused bitcoin to failure, but Luzin is not wrong, bitcoin would not have reached the high value it is today without exchanges. Like it or not, exchange is essential for the market.

Plaguedeath

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Quote from: Luzin on January 10, 2023, 10:10:21 AM

It is hard to imagine if the exchange does not exist. Perhaps Bitcoin will simply become a transaction tool. Perhaps Bitcoin will not have the value it is today and they will not develop into a commodity.

If you say like that, then Satoshi vision is already achieved since he's think Bitcoin is used as a transaction tool or currency rather than a commodity. Most people prefer to use Bitcoin as a commodity since Bitcoin has high volatility and the price is constantly increase during the 4 year cycle.

I would say Bitcoin wouldn't become a currency if there's no exchange accept Bitcoin, because Bitcoin is still not get controlled by one party and due to low adoption, I don't think people will want to use it as a currency since they worried if Bitcoin has no value.

Luzin

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Quote from: KingsDen on January 10, 2023, 08:28:57 AM

As banks are to fiat money so also exchanges are to bitcoin.
There is no doubt that exchanges are important parts of the bitcoin and cryptocurrency community.

However, we do see and hear the news where banks are rubbed or they bankrupt. It therefore will not translate that the fiat money is scam or has failed.
That is the same situation with exchanges and bitcoin. If one exchange fails, it doesn't mean bitcoin has failed.
Although, since I know bitcoin it has never been a friend of the media and speculators.

It is hard to imagine if the exchange does not exist. Perhaps Bitcoin will simply become a transaction tool. Perhaps Bitcoin will not have the value it is today and they will not develop into a commodity.
Even I know bitcoin because of trading, and profit. Regarding the failure of the Exchange that has already occurred, it is because they have a weakness in storing assets in the form of valuable crypto. So far Bitcoin is created and has value and he is the main target. So they don't look at the downsides of Bitcoin but its storage or exchange. CMIIW

Woodie

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The connection between Bitcoin/cryptos performance and an exchanges role will always be debatable but we do agree that these exchanges (Dex/Cex) are the platforms that act as the gateway to the real world, anybody trying to get their hands on some crypto for the first time are more likely to come here as these are the most common channels...Which is why if these are hacked or customers aren't served in their best interest word goes round about this... which creates fear and people sell their crypto assets and wait till the dust settles before jumping back into the markets.

KingsDen

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As banks are to fiat money so also exchanges are to bitcoin.
There is no doubt that exchanges are important parts of the bitcoin and cryptocurrency community.

However, we do see and hear the news where banks are rubbed or they bankrupt. It therefore will not translate that the fiat money is scam or has failed.
That is the same situation with exchanges and bitcoin. If one exchange fails, it doesn't mean bitcoin has failed.
Although, since I know bitcoin it has never been a friend of the media and speculators.

Nrcewker

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Exchanges have truly impacted the reputation of Bitcoin. I mean these exchanges perform such cheap scams and people say Bitcoins are illegal and scams. FTX scam was really astonishing for many of us, but still for this, many people showed fear and sold their Bitcoins. And this lead to the price fall of the coin. But yes as said, the failure of Exchanges can never affect Bitcoins, as when the price went down, it created opportunity for the people to buy more coins in the cheap price. This will eventually lead to increase in Bitcoin’s price. Let’s hope for the best and see what happens next.

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Quote from: Crypt0Gore on January 09, 2023, 09:55:44 AM

Let's not forget that few coins are not listed on centralized exchanges till today and they do so well in this crypto market, look at HEX for example, as successful as this coin is it never get listed on those cex big exchanges .
Bitcoin will do so fine without any centralised exchanges and in fact it feels more at home on Decentralised exchanges, Bitcoin was never created to be under any centralized power as we know it.

Not even that because it is very simple that fail of exchanges whether it was centralized or decentralized certainly won't affect the future of Bitcoin. But it was very unfortunate that many people are already make bad opinions and negative views about Bitcoin and spread them on social media. However, this will never affect the trust of those who believe in the potentiality of the project, and they remain calm and positive despite those assumptions.

I heard some people then say it was a failed project, yet they never use it in the first place.

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it never is. it affect btc price . but not btc fault
in the firstplace bitcoin is great cause it's decentralized, removing third party, and need of trust.
and people think centralizing it and putting it on third party based on trust is good idea lol

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Quote from: Yatsan on January 09, 2023, 12:06:28 PM

Quote from: Fundamentals Of on January 08, 2023, 10:34:20 PM

This seems to be a confusion not just to many ordinary people but even among the leaders in congress who investigated the case of FTX. Sometimes it is easy to generalize crypto companies, crypto applications, even other cryptocurrencies as Bitcoin. They are not.

If Bitcoin is being doubted because FTX failed, then they haven't understood a thing about Bitcoin. This must also be the generalization of some members of congress who failed to understand that centralized exchanges like FTX isn't Bitcoin, doesn't represent Bitcoin. In fact, they are the opposite of Bitcoin.

I doubt with the 'opposite' it is more of a product being used in a platform. The platform is exchanger while the product is Bitcoin. But that's indeed true, generalization has never done good to any industry; it just makes the situation worse.

Bitcoin is about decentralization. FTX and the rest of the most popular exchanges right now are centralized. That's opposite. Bitcoin is about full control and ownership. FTX is about having somebody else hold the funds in your behalf. That's another opposite. Bitcoin respects privacy. FTX asks for personal information and even stores them in a way that could possibly be hacked or leaked. Bitcoin is basically peer to peer. FTX is a third party. So FTX is the complete opposite of Bitcoin. People shouldn't confuse FTX with Bitcoin because they are far from the same.

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Quote from: Iroh on January 09, 2023, 05:49:28 PM

I think exchanges play a big role in the general use of bitcoin as people could easily buy and trade in their coins for fiat at anytime. With the constant advertisements on the social media space, it has spread crypto and bitcoin far and wide, somewhat creating some sort of awareness.
While it has its uses, we shouldn’t forget also that they’re in it as a business. They claim to safely hold your coins for you so you don’t have to do so yourself. And bitcoin is there encouraging users on the need for self custody of your funds.

Bitcoin has risen above all the misconceptions and falsehoods. The demise of an exchange cannot be the demise of bitcoin.

those with ill intent of creating business out of bitcoin can easily go down hard but btc itself won't go down. those people who have different approach towards btc for sure don't find time to educate themselves about btc itself. because simple reading will give them enough knowledge to understand the true nature of btc.
ignorance is the main reason why many people are still connecting the failure of certain crypto businesses to btc. if they wont educate themselves with facts, they won't know the truth.

Iroh

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I think exchanges play a big role in the general use of bitcoin as people could easily buy and trade in their coins for fiat at anytime. With the constant advertisements on the social media space, it has spread crypto and bitcoin far and wide, somewhat creating some sort of awareness.
While it has its uses, we shouldn’t forget also that they’re in it as a business. They claim to safely hold your coins for you so you don’t have to do so yourself. And bitcoin is there encouraging users on the need for self custody of your funds.

Bitcoin has risen above all the misconceptions and falsehoods. The demise of an exchange cannot be the demise of bitcoin.

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Quote from: sheenshane on January 08, 2023, 07:59:26 PM

There's nothing wrong with me if we will use a centralized exchange as long as never store your coin on exchange for a long time.
They also contributed an awareness of Bitcoin among the people and criticizing failure doesn't make sense to me but instead, learn from this mistake and never leave your crypto to them.

You are right, centralized exchanges are supposed to be used as intermediaries when a trader wants to convert his assets into bitcoin or fiat or some other crypto. Centralized exchange is certainly not a secure storage wallet, but people will still use it as a storage because they trust the reputation of the exchange. People have to learn from past mistakes, so regardless of the risks they also have to take responsibility for their decisions.

Criticizing exchange failures seems fair because people expect their assets to be safe no matter what, but nothing is risk free even if the exchange is well known and reputable. So if we have considered the risks, then we also have to know what the worst consequences will be.

Topic: The Failure of Exchnages can never be that of Bitcoin. (Read 407 times)