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?
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?
It is very understandable that Satoshi did not want this, he wanted everything totally decentralized, even the Exchanges, the main reason I think that there are these Centralized Exchanges, it is for the security that it offers to the Traders, the confidence and security that comes from having the Safe money and not being targeted for possible scams is what many operators seek.
Everything lies when money is converted into Crypto Money Fiat, there everything changes, because it is when it is taken from the digital to the real. In addition, it relies more on Level 1 Exchanges, since many operators have been stripped of their balance sheets because they trust Exchanges without any type of reliability.