Re: Why are centralized exchanges still dominating the crypto space?
Ever since Bitcoin launched back in 2009, the rise of centralized exchanges has been inevitable. A few years later, and now the whole crypto market is dominated by centralized exchanges. While there have been many alternatives to the solution (such as decentralized exchanges), people are still performing trades at centralized entities.
Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.
Nonetheless, what are your thoughts about this?
Decentralised exchanges are most time difficult to use, many people have lost a lot of funds on decentralised exchanges. But with centralised exchange e.g binance the UI is very user friendly and the security that comes with it are top notch unlike decentralised exchanges where your private keys can be easily compromise. Now the real question is why this is happening, since after all, Satoshi intended Bitcoin to be free from middleman or third parties? Depending on an exchange or custodian, greatly defeats the purpose of true decentralization. Knowing how oppressive some governments are, it'll be easier for them to stop usage of crypto whenever they want to by just targeting centralized exchanges.
Nonetheless, what are your thoughts about this?