Criticizing Bitcoin/crypto because of a centralized exchange failure has always been an idiotic criticism in the first place; always voiced out by ignorant people on social media. Those empty cans have always been the most vocal.
Yes, this is true, because the main responsible for the failure of any central exchange is the central authority responsible for it and its team. No one can blame Bitcoin for the failure or collapse of the central exchange. This is far from true. Bitcoin is alive even before the emergence of these shit exchanges and after the failure and collapse of many central exchanges, Bitcoin was able to maintain its market value and the confidence of investors in it, because it is indeed digital gold and one of the best safe and reliable currencies over the years. Only ignorant and skeptical people throw these false accusations against Bitcoin due to their lack of knowledge. 
Topic: The Failure of Exchnages can never be that of Bitcoin. - page 3. (Read 407 times)
I completely agree that logically, we cannot blame Bitcoin and it's unfair for Bitcoin to suffer reputational and/or financial losses when a centralized exchange failed. Bitcoin is not a company managing exchanges and exchanges aren't managing Bitcoin either. They are causally unrelated.
Bitcoin is only one of cryptocurrencies on a centralized exchange. A collapse of any centralized exchange does not relate to Bitcoin. Bitcoin has its market, has its price and volatility. If a centralized exchange has bad fund management for themselves and for users, they are responsible for bank run, collapse anytime.They collapse usually not because of Bitcoin but because of tokens. Tokens are more easily to have dumps like Terra $LUNA, $UST, $FTT token from FTX exchange. Who will be able to dump $BTC from $17,000 to $1,700 in 24 hours? I believe we don't see it with Bitcoin nowadays and in future. With altcoins, we see a lot of dumps by panic sells, liquidations, rug pulls.
I completely agree that logically, we cannot blame Bitcoin and it's unfair for Bitcoin to suffer reputational and/or financial losses when a centralized exchange failed. Bitcoin is not a company managing exchanges and exchanges aren't managing Bitcoin either. They are causally unrelated. That being said, not everything works out according to logic.
You know how a GPU can be a bit less common and gaming developers won't optimize their code for it? People will still be less motivated to buy that GPU, even though game devs are at fault. Similarly, if people like exchanges and exchange fails, they'll feel less motivated to use Bitcoin, even though it's not its fault. I know the analogy isn't perfect, but I think it's okay to make a point. Consequently, the price of Bitcoin without centralized platforms or with failing centralized platforms can still decrease significantly.
You know how a GPU can be a bit less common and gaming developers won't optimize their code for it? People will still be less motivated to buy that GPU, even though game devs are at fault. Similarly, if people like exchanges and exchange fails, they'll feel less motivated to use Bitcoin, even though it's not its fault. I know the analogy isn't perfect, but I think it's okay to make a point. Consequently, the price of Bitcoin without centralized platforms or with failing centralized platforms can still decrease significantly.
I don't know where you read that news, but I've never heard of it, bitcoin and exchanges like currencies and banks. A failed bank doesn't mean the currency collapses and neither does bitcoin. I remember we also had a topic about the correlation between bitcoin and exchanges and honestly, bitcoin can work fine even without an exchange, so saying that the collapse of exchanges will drag bitcoin to collapse is the dumbest statement I've ever heard.
I see you didn't take your time reading throughout the whole text there, I'll advice you take your time already to read it.
The faluire of centralized exchange has never been and will never be the downfall of Bitcoin.
It was good to hear and read from users during the FTX collapse saying they handled the entire situations gently despite majority of them getting bankrupt by Fxt. I would be so disrespectful of me to call you a poor reader so I won't do that.
exchanges have a utility. (a ramp/gateway/bridge) between fiat and crypto..
however USING AS A BANK/CUSTODIAN is the big problem
letting them hold onto your value for more than the day you actually wish to trade/convert. is the risk factor.
the more they get to hoard per day, week.month. the more value hoarded. the more of a temptation it is for the owners or hackers to take
my view is this
if an exchange wants to operate. the exchange owner has to be liable to its customers. that means if share holders of exchanges are profiting from the trades. if there is a bankruptcy or hack. the share holders(as owners) need to pay up to make customers whole again.
they should not be declaring themselves as creditors/debtors whereby they get a X% of assets of a co-mingled value of company collateral.. the customers should be paid back in full first. and IF their is any remainder. then share holders can take that pennies on dollar
but to the point of the fiat world shifting blame to user stupidity and blaming bitcoin. these hacks and bankruptcies happen in the fiat world too.. there is no difference. because the bad practices of crypto leaning businesses are the fault of them doing the same 'lack of fiat security' practices of the fiat world, using fiat law and loopholes
it does not matter what currency is/was/will be using. the end result of these businesses would have been the same result
however USING AS A BANK/CUSTODIAN is the big problem
letting them hold onto your value for more than the day you actually wish to trade/convert. is the risk factor.
the more they get to hoard per day, week.month. the more value hoarded. the more of a temptation it is for the owners or hackers to take
my view is this
if an exchange wants to operate. the exchange owner has to be liable to its customers. that means if share holders of exchanges are profiting from the trades. if there is a bankruptcy or hack. the share holders(as owners) need to pay up to make customers whole again.
they should not be declaring themselves as creditors/debtors whereby they get a X% of assets of a co-mingled value of company collateral.. the customers should be paid back in full first. and IF their is any remainder. then share holders can take that pennies on dollar
but to the point of the fiat world shifting blame to user stupidity and blaming bitcoin. these hacks and bankruptcies happen in the fiat world too.. there is no difference. because the bad practices of crypto leaning businesses are the fault of them doing the same 'lack of fiat security' practices of the fiat world, using fiat law and loopholes
it does not matter what currency is/was/will be using. the end result of these businesses would have been the same result
You were mistake when comparison about Bitcoin and centralized exchange failure, there are not any relationship and impact when having trouble with centralized exchange market will make Bitcoin price drop. Honestly, Bitcoin not control by the owner of centralized exchange and have dependent their way keep exist in long term.
Have many exchange collapse last several years and Bitcoin still exist until reached all time high price last two years, when the moment Bitcoin under $10,000 ever have many bigger exchange collapse like Cryptopia, but Bitcoin doesn't have bigger impact and keep existing whatever happening on centralized exchange market. Don't hold or save Bitcoin in centralized exchange but use cold wallet and hardware wallet for saving your Bitcoin.
Have many exchange collapse last several years and Bitcoin still exist until reached all time high price last two years, when the moment Bitcoin under $10,000 ever have many bigger exchange collapse like Cryptopia, but Bitcoin doesn't have bigger impact and keep existing whatever happening on centralized exchange market. Don't hold or save Bitcoin in centralized exchange but use cold wallet and hardware wallet for saving your Bitcoin.
Criticizing Bitcoin/crypto because of a centralized exchange failure has always been an idiotic criticism in the first place; always voiced out by ignorant people on social media. Those empty cans have always been the most vocal.
so saying that the collapse of exchanges will drag bitcoin to collapse is the dumbest statement I've ever heard.
I think you missed the points OP is actually emphasizing on the facts that Exchanges collapsing doesn’t have effect on bitcoin.
The only thing Exchanges that ends collapsing with huge amounts of peoples fund impacts is the mass adoption of
Bitcoin. Because ones these investors (mostly new ones) loss there funds it discourages them to continue on the path of cryptocurrency because without the in-depth knowledge of bitcoin they take it as same. Another area is the fact that bitcoin haters always attach any crypto scam or fall to it just to wave people against it, most especially the government sponsored news outlets. You will see news heading of exchange collapse as “so so amount of bitcoin was lost due to so and so exchang collapse. This is only an agenda against bitcoin and I feel people teaching others about bitcoin should severely warned them about storing their funds on these CEXs and that it has no connection with bitcoin
I don't know where you read that news, but I've never heard of it, bitcoin and exchanges like currencies and banks. A failed bank doesn't mean the currency collapses and neither does bitcoin. I remember we also had a topic about the correlation between bitcoin and exchanges and honestly, bitcoin can work fine even without an exchange, so saying that the collapse of exchanges will drag bitcoin to collapse is the dumbest statement I've ever heard.
I have read, heard close discussions, rumours and rumoured misconceptions and misunderstanding about Bitcoin as it relates with Exchanges.
As we all are aware, the ussge if centralized exchange defeats the whole idea of Bitcoin and perhaps the reason why it was created by Satoshi Nakamoto which is decentralization and self custody. Regardless of how people speak condescendingly to friends and families about backing off from investing in Bitcoin and other cryptocurrencies during the recent FTX collapse.
A bit furious about it summon myself to make this up, that the failure of an exchange can and will never be the failure of Bitcoin.
Satoshi Nakamoto who I believed mined the highest number of Bitcoin has not 1% of those Bitcoin holding's on any of those popular exchanges. That should be enough for every or any sensible human out there to mimick and imitate. I consider it pure cowardice to think that if an exchange fails that Bitcoin will fail, not even the level of crypto scams will crash it nor lead it to stunt growth and adoption. Jim Cramer has been such a stupid influencer pushing people to exit investment in crypto and also to panic sell which is wrong as he said that months behind. A dialogue with people who have seen worst in the bear market and exchange collapse will have you disciplined and leaving exchanges for good, buying the dip in the process as it also an opportunity to accumulate more satoshis.
Below are something's exchange do;
In Reality, Bitcoin is a digital gold and can actually do without exchnages.. they haven't represented Bitcoin from the very beginning, an example is that the first pizza bought with Bitcoin, had no exchange playing any role in that process.
If there were no cryptocurrencies especially Bitcoin, there wouldn't have been an exchange... Centralized Exchnages rose up after the creation of Bitcoin , are they any different from local banks? Making profits is the sole aim.
Since the rise of Centralized Exchnages they have more harm and ruins... From MT. GOX, Quadriss and to thr latest FTX collapse, all they do is put investors in doubt about the continuation of investments in crypto projects, both life savings and retirement plans have been shattered.
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.
As we all are aware, the ussge if centralized exchange defeats the whole idea of Bitcoin and perhaps the reason why it was created by Satoshi Nakamoto which is decentralization and self custody. Regardless of how people speak condescendingly to friends and families about backing off from investing in Bitcoin and other cryptocurrencies during the recent FTX collapse.
A bit furious about it summon myself to make this up, that the failure of an exchange can and will never be the failure of Bitcoin.
Satoshi Nakamoto who I believed mined the highest number of Bitcoin has not 1% of those Bitcoin holding's on any of those popular exchanges. That should be enough for every or any sensible human out there to mimick and imitate. I consider it pure cowardice to think that if an exchange fails that Bitcoin will fail, not even the level of crypto scams will crash it nor lead it to stunt growth and adoption. Jim Cramer has been such a stupid influencer pushing people to exit investment in crypto and also to panic sell which is wrong as he said that months behind. A dialogue with people who have seen worst in the bear market and exchange collapse will have you disciplined and leaving exchanges for good, buying the dip in the process as it also an opportunity to accumulate more satoshis.
Below are something's exchange do;
In Reality, Bitcoin is a digital gold and can actually do without exchnages.. they haven't represented Bitcoin from the very beginning, an example is that the first pizza bought with Bitcoin, had no exchange playing any role in that process.
If there were no cryptocurrencies especially Bitcoin, there wouldn't have been an exchange... Centralized Exchnages rose up after the creation of Bitcoin , are they any different from local banks? Making profits is the sole aim.
Since the rise of Centralized Exchnages they have more harm and ruins... From MT. GOX, Quadriss and to thr latest FTX collapse, all they do is put investors in doubt about the continuation of investments in crypto projects, both life savings and retirement plans have been shattered.
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.
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