Placing your balances in the hands of third parties means effectively government has complete control and can destroy the apple-cart with regulation and seizures at-will.
Hold on here Anon - WTF has Govt. had to do with Mt Gox going tits up ?
Nothing as far as I can see - its been the good old (unregulated) free market at work hasn't it
? But I agree about trusting 3rd parties [in the absence of regulation] being problematic.
What would a decentralised exchange work like in practice ? How would it be implemented ? Where does Ethereum fit into all this ?