Topic: Would Bitcoin Be Badly Hurt if Binance Goes Down? - page 3. (Read 844 times)

This is true.  There will always be other exchanges. But then it might lead to more troubles because people will now start using various exchanges and they might not know which is trustworthy and which is not. For an exchange to be as big as Binance, it will take time. It takes time to build trust, especially the kind of trust that Binance has built with its customers.

If Binance completely does down, it will affect Bitcoin price but that's all it will do. I don't believe it will go below $16k though. 

This is true.  There will always be other exchanges. But then it might lead to more troubles because people will now start using various exchanges and they might not know which is trustworthy and which is not. For an exchange to be as big as Binance, it will take time. It takes time to build trust, especially the kind of trust that Binance has built with its customers.

If Binance completely does down, it will affect Bitcoin price but that's all it will do. I don't believe it will go below $16k though. 

Binance can be trusted because of their reputation, but we can't guarantee they will stay the same in the long term as things can change over time. I expect everyone to treat Binance as just an exchange, so it's not a safe depository for their assets in the long term.

You're right, and it's even harder to avoid a big crash if Binance goes down forever. If in the future Binance crashes, then an adverse impact on the bitcoin price could occur spontaneously. People will turn this case into a lousy FUD and will continue to drive the bitcoin sell numbers even lower. If Luna, FTX and some other cases can affect the volatility of the bitcoin price, then of course it is true that bitcoin will also have a bad impact when Binance goes down especially about the price.

If Binance does not feel guilty and has not violated anything, then they have the right to defend themselves even if they have to hire a lawyer during the trial. Their success against the lawsuit has had a positive impact on the market where as of now the market has also shown recovery after the price dropped below $25k.

The fact is true that Binance or any other centralized exchange will be able to have both positive and negative impacts on the market. But I believe, the impact will not last forever because bitcoin has nothing to do with a centralized exchange. Exchanges are a facility for traders and investors to buy and trade assets, but exchanges are not the only way to trade bitcoins.

Fortunately, Binance managed to prove itself just recently about the lawsuit. Something expected for the largest exchanger and for sure they won't allow its downfall to just happen in an instant and that easily, they are expected to fight it out. They have the money to do so, in the first place.

Binance can be trusted because of their reputation, but we can't guarantee they will stay the same in the long term as things can change over time. I expect everyone to treat Binance as just an exchange, so it's not a safe depository for their assets in the long term.

You're right, and it's even harder to avoid a big crash if Binance goes down forever. If in the future Binance crashes, then an adverse impact on the bitcoin price could occur spontaneously. People will turn this case into a lousy FUD and will continue to drive the bitcoin sell numbers even lower. If Luna, FTX and some other cases can affect the volatility of the bitcoin price, then of course it is true that bitcoin will also have a bad impact when Binance goes down especially about the price.

I also don't believe that Binance will collapse just because of the SEC's baseless accusations because Binance is not cheating and is not as bad as FTX did. But in the distant future, it is difficult to say with certainty that they will continue to exist and develop, anything is possible. I'm still using Binance, but I can't rule out the possibility that it will crash in the next bear seasons, but not this time.

You are underestimating the influence of Binance, I even believe that $5k will be easy if Binance really crashes, and it will take us at least 3 to 5 years to recover everything. The dominance of Binance is unprecedented, no exchange has done this to date, not even Mt.gox.

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 But apart from all that, right now I don't think that Binance will really fall because Binance has its own way of solving every problem and developing their exchange to be better for the future.

If Binance completely does down, it will affect Bitcoin price but that's all it will do. I don't believe it will go below $16k though. 

I actually think that if Binance really does fall for whatever they're going through, then there's going to be another exchange that makes it big in the crypto space with a lot more users. Because users who used to use Binance will definitely move to use other exchanges that are no less good than Binance even though the effects caused by this are not wanted by many people, which might result in a decline in the price of cryptocurrencies.

Binance is the largest cryptocurrency exchange. If it completely stops work, the cryptocurrency will fall very much! The market will hardly be able to recover in 3-5 years.
But I don't think it will happen

I don't think so. Binance exchange and bitcoin wallet are not connected so it will not. CZ is not the owner of bitcoin so it will not. They operate different class with different nature. The Binance exchange only serve the purpose of bitcoin. Satoshi Nakamoto create bitcoin for p2p transactions which Binance is using it as part of is service.
The accusations level against Binance has do with bitcoin. Though the are fighting against bitcoin indirectly but they will not succeed.

I really am no fan of Binance because I found their KYC annoying. What is not in doubt is that CZ is supposedly one of the most credible faces of crypto. How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

https://www.cryptoinfowatch.com/a-former-sec-official-said-the-binance-ceo-and-others-may-face-criminal-charges-soon/

I don't think so. Binance exchange and bitcoin wallet are not connected so it will not. CZ is not the owner of bitcoin so it will not. They operate different class with different nature. The Binance exchange only serve the purpose of bitcoin. Satoshi Nakamoto create bitcoin for p2p transactions which Binance is using it as part of is service.
The accusations level against Binance has do with bitcoin. Though the are fighting against bitcoin indirectly but they will not succeed.

Bitcoin or Crypto would surely be hurt whenever a big player or company goes down,
Just imagine how many traders are using it and we could assume some of them only got into crypto because of trading and it is their only trusted trading site, for sure some of those would quit while others would look for alternative.
The impact would surely be felt but I think it could only be for a short time.

Like you said, CZ is a big name in the crypto market, but what do you call a big name? He has been able to make his way to the top with his business ideas and amazing upgrades. I don't know how he did it, but for him to pilot his exchange to the top above all others existing before his, then I guess he deserves the big-name title.

The US government is also a big name, as they are currently regarded as a world power. If they shut down Binance, which they can only do on their end, they can only shut it down in their country. So long as other countries are still in support of the exchange, it won't completely go down.

And even if something happens and Binance completely goes out of business, one thing is for sure: the Bitcoin price will shake because it's among the exchanges that hold the highest Bitcoin trading volume, so such action will shake the market with a lot of panic selling, a huge number of withdrawals, and so on.

But above any given action, there is nothing that's going to happen to the market that has not happened before, so nothing will appear new to us again. The Luna crash, FXT, and many other big incidents could have wiped out people's faith in crypto, but they didn't, so with or without Binance, Bitcoin will survive. With or without the US government's support, either negatively or positively, Bitcoin is not dying off.

Assuming that Binance indeed goes offline, lots of exchanges would now be affected by this kind of damage.

Binance is without a doubt one of the most trusted exchanges in the market due to its market cap and liquidity. At least almost a majority of cryptocurrency holders have used Binance once in their life as it is considered one of the pioneers of exchanges. It has built its name and reputation from countless of transactions as it is now trusted by almost all users.

If Binance goes offline, this would definitely affect most of the exchanges world-wide. Expect prices of cryptocurrencies to plummet as there would be no reliable exchange for users to transact their coins from users across the globe.

I really am no fan of Binance because I found their KYC annoying. What is not in doubt is that CZ is supposedly one of the most credible faces of crypto. How much harm do you think a Binance implosion would cause Bitcoin? Is the US a big threat to the coin market?

https://www.cryptoinfowatch.com/a-former-sec-official-said-the-binance-ceo-and-others-may-face-criminal-charges-soon/