Topic: Would Bitcoin Be Badly Hurt if Binance Goes Down? (Read 844 times)

Binance exchange will follow the steps of Bittrex exchange as they'll allow users to withdraw all their Bitcoin and other cryptocurency on the exchange before they closed down finally, Binance exchange is a reputable exchange and CZ is a very host human being and won't be as cold as Sam Bankman-Fried was therefore we shouldn't be worried about users losing their coins on the exchange although it isn't wise and safe to keep your coins on exchanges.

If Binance exchange was to collapse it'll affect the market generally and Bitcoin will be affected. When FTX collapse it had its impact on the market and that's because FTX was a big exchange and people got scared which is the same thing that'll happen if Binance goes down.

Indeed, going through KYC process on Binance is annoying as it entails potential privacy risk. However, this requirement is imposed by the countries in which exchanges operate and it is often a legal requirement of local institutions. Despite this inconvenience ,Binance has played a vital role for the promotion, growth and adoption of crypto currencies all over the world.. If Binance were to face shutdown down, I believe it will badly hurt crypto currency market from short to medium term. However Bitcoin has inherent strength and resilience to survive from such crisis. Eventually it will resume its normal behavior and become stable overtime.

Binance exchange just turned the best when? There are bigger crypto exchanges before the Binance exchange and they went down, today Bitcoin is still standing strong.

Even if Binance exchange grows in three folds of what it is today, it doesn't concern Bitcoin and moreover, Bitcoin was never created for centralized exchanges, it's the investors that decide to dance to the tone of centralized exchanges, and it's not anyone's business, it means they are ready to take responsibility if anything goes wrong.

There are many crypto investors from America that's why the country plays a major role in crypto investment, it won't make much sense if the US is left out of crypto, this is why I don't like what is going on with the SEC right now.

The implementation of KYC that is enforced on the Binance exchange is indeed a bit disturbing for some investors in the crypto sector. Because it's all about the real identity of the user, and that's what makes binance a little bit annoying among crypto investors. But even so, Binance has so far managed to become the number one crypto exchange in the world, and this is enough to prove that Binance is an exchange that can be considered safe and can be trusted.

But with the recent incidents, Binance's reputation among its users has dropped a little. So you could say that Binance is currently in a precarious state. Because if CZ and his colleagues are proven to have committed a criminal act as stated. It is certain that binance will be destroyed and its use will be blurred. That way it will automatically disrupt the crypto market and including bitcoin too.

And when it comes to the losses that will befall bitcoin assets resulting from the collapse of binance(for example). In my opinion, it might be a little big, if only the users on binance don't quickly withdraw the bitcoin assets they have into their personal wallets. Because if this is not done, it is feared that the assets of those who own them will be stuck on the Binance exchange. But if for example the majority of users on Binance withdraw the assets they have, maybe the loss will not be too big.

Because of big liquidity in the market it'll definitely lead a significant decline.

If Binance shutting down, it would have a potential negative impact that could affect the entire cryptocurrency ecosystem. Talking about recovering from this situation would require a combination efforts from different stakeholders involved in cryptocurrencies.

However, getting a full recovery and restoring market stability would be a gradual process with significant time.

KYC is indeed very disruptive.
The impact will be because Binance is currently a large exchange with a large transaction rate.
In general, we can judge from the FTX case that it can have an impact, let alone happen to Binance.

America is not alone, there are several other countries that are players that could be a threat to the coin market including China.
Market control will always be attempted to be done but the goal in my opinion is more for their profit not to destroy crypto.

One thing that I think is important is that Bitcoin will still exist if Binance one day disappears.

In your opinion, a famous person will have an inert influence on the market. Take a look at FTX, it was the collapse of a major exchange, it caused bitcoin to plummet from 69k =>> 15k

While its fun to imagine such dramatic situations, I think any shutdown would need to be managed carefully and professionally. I prefer your third and fourth scenarios as a crypto-enthusiast who values due process.

First, selling all crypto assets and distributing the money depending on users' portion of overall balances seems fair. Due of its volume, it can cause a major market decline.

To circumvent this, liquidate assets for fiat, institute a tight withdrawal process, and buy only when needed. They assure market stability and user share this way.

Regardless of the outcome, the market would shake. However, it must be handled wisely to ensure user fairness and market stability.

The fluctuations will definitely be bigger than how you are describing it, Binance is the biggest cryptocurrency exchange in the world right now, and I believe it wouldn't happen because the case that SEC is fighting against Binance isn't directly against Binance or CZ it's targeting cryptocurrencies that are being offered by the platform that SEC considers securities and they aren't registered with them, but if Binance collapses or goes down, we will see a big blow in the market for sure.

I know there have been rumors of cases against Binance and CZ before all this happened, but none of them were really proven to be true, so there is basically nothing so strong at the moment that can shatter the pillars of Binance that it has got all around the globe in the present time.

Normal volatility is a little bit different to a large centralized exchange (or in the case of Binance, one of the largest crypto institutions that are still operating) being forced to close operations.

If Binance were to be closed, positions will be cancelled, not liquidated. In an ethically fine event, everyone can withdraw and the exchange will store or sell the excess...maybe, the price won't be drastically effected by this. However, that is a very idealistic view.

It has been reported that Binance have less reserves than exchange balances...this could mean five outcomes:
1. Binance somehow find the difference, buy crypto and allow the balances to be withdrawn.
2. Binance find a way to close without 100% of balances being able to be redeemed. Likely by selling, causing a market catastrophe, buying the difference.
3. Completely liquidating all crypto and paying everyone a share of the proceeds based on their percentage of total exchange balances.
4. Liquidating everything for fiat, strict withdrawal process and buying only when needed to process withdrawals.
5. Everyone gets BNB, all assets migrate to BNB, all reserves injected into BNB.

All seem unlikely, all are possible in the event Binance stop normal operations and need to close. One thing is for sure, it will cause unprecedented waves in the market.

What means "hurt really bad"? You mean a price drop? Probably yes. But don't we already have that? Price drops and price rises? That's just called volatility. That's not that bad because sooner or later Bitcoin recovers! Never forget that has a finite supply coin, the long run tendency is a price rise! So, probably yes, there will be price drops. There will be many orders liquidated, but the positive aspect is that will clear some weak hand in the process!

I can't specifically say how hurt Bitcoin will be if Binance goes down, but it will be hurt, that's for sure.
I also do not think the price will be go lower than it did due to the FTX saga. The pressure will most likely come from the regulatory bodies, banks and all those against Bitcoin. They'll come to gloat and say "I told you so"

Bitcoin will survive without any exchange, both centralized and decentralized.
Saying Bitcoin will become non existence because a particular exchange went down, that's like saying the dollar will seize to exist if a particular bank goes down.

Bitcoin price has plummeted in just 24 hours when the FTX crisis has been known, so how much more if the same event will happen to Binance? Surely it will create a massive effect on bitcoin price, the market will definitely turn into a bad shape, hence weak investors will probably be in panic again. That’s the reality if Binance will be put in danger. Not only it’s own company will suffer, but also bitcoin price and the crypto market itself. 

I’m thinking the opposite. Maybe crypto market will experience price dip during the initial day prior to the announcement but Bitcoin will surely recover since it is not directly connected to Binance. If there’s any coin that will be heavily affected then it should be BNB and BUSD since that is their native tokens that value is based on Binance reserve.

In the scenarion that Binance will fall down. I believe all CZ and Binance asset will be frozen and that means there will be less crypto currency that will be circulating by the time this issue will happened. Binance hold a vast supply of crypto market and crypto will be less volatile without this tokens affectng the market.

It would not, unless Binance is found to be a scam like FTX. If Binance simply says they're shutting down, allowing people to withdraw their money, there's not going to be much damage.
Also, FTX happened in a bear market which multiplied the effect.
You have to realize that most bitcoin is currently held offline, so an exchange imploding can't have a long lasting effect on the price because it can't affect too many people. I, for instance, have 100% of my coins offline.

If we start to think, Binance was created years after bitcoin came to the fore, so if it disappears, many people will probably choose to use another Exchange that suits the needs of the users or simply create a new one that fulfills the same functions. and even with other adaptations…….However, studying the panorama a bit, I have been able to notice that this platform is one of the most used currently, it has come to gain great fame and a considerable number of users, so if considered that it would somehow affect the value of bitcoin, since despite the fact that this asset has no relationship with fiduciary monetary operations (for example, inflation), it is affected by demand, so if people (mostly inexperienced) goes into crisis thinking that it would be the end of bitcoin, the graphs will express low fluctuations.

It will be a crisis that will seriously affect the entire crypto market if Binance goes down. As we all know, CZ and Binance are powerful empires that have been around for quite some time in the cryptocurrency industry. And there are many people currently using Binance's wallet to store assets as well as daily transactions. So its collapse will deal a stronger blow than when we know that the top 2 FTX exchanges crashed in just a week and its consequences were huge. So the consequences affect both the negative and positive sides of crypto for people and make the crypto trend changeable.

There are always those who play a part in creating unfavorable conditions in the market, the SEC and Binance are two examples that were able to play a state of panic on people investing and ultimately cause bitcoin to correct. But back again as I said, that this is only in the short term and the self-control of each individual involved in investing is very important.

What kind of regulation is meant, apakah ini terkait dengan pertukaran atau apa? because I don't think bitcoin needs any kind of governmental or institutional regulatory framework to make it more independent. The resilience of bitcoin is precisely due to the absence of a regulatory authority so that people are free to control investments independently.

It is difficult to predict the exact impact of Binance going down on Bitcoin. It is worth noting that Binance is currently one of the largest cryptocurrency exchanges in the world, and its trading volume accounts for significant portion of the overall cryptocurrency market. If Binance were to go down, it could potentially lead to a decrease in trading volume and liquidity for Bitcoin and other cryptocurrencies. This could also cause prices to drop in the short term, as there would be fewer buyers and sellers in the market. It is important to take note that the cryptocurrency market is highly volatile and unpredictable. There have been instances in the past where major exchanges have gone down or been hacked and bitcoin has still managed to recover and reach new all time highs. The long term impact of Binance going down on bitcoin would depend on variety of factors including the reason for Binance's closure and how quickly it is able to recover.

Despite impactful incidents like the SEC' clash with Binance, Bitcoin's mettle outshines. Given Bitcoin' intrinsic decentralized character that diffuses any single authority's control, its hardly a shock. Its crucial not to undervalue the power of perception and user confidence. As you accurately pointed out, the absence of widespread panic was instrumental in Bitcoin's value rebound, echoing the power of our collective faith in Bitcoin's robustness and potential.

However, I believe this highlights the urgency for definitive regulation. Addressing such predicaments in a structured manner could heighten Bitcoin's credibility. So, even as we commend Bitcoin's resilience, we must simultaneously advocate for a transparent, balanced regulatory framework that serves users and maintains market stability.