Do you think ever-increasing centralization is a cause of concern? What would be the impact of tightening regulations over the entire crypto/Blockchain space? Will it still be able to survive? Your input will be greatly appreciated. Thanks in advance.
But if we talk about the negative impact on the user and investor's ends, these things we possibly get,
* taxes
* high fees
* controlled market price
* they can freeze our accounts and seize our money
There are always some negative impact if we were to embrace centralization from cryptocurrencies. But to be honest, centralization goes against the vision of what Satoshi imagined as it somehow defeats the purpose of creating a decentralized currency.
The question is, is centralization essential in order to combat the aforementioned issues of scams, hacks, etc. ? I do not think so. While there may be scams and fake projects, a diligent person may be able to overcome it by being responsible. Though one thing that he cannot control are the hacking of exchanges, but this can be resolved if you were to move your coins to your respective hardware wallet.
Though centralization of some coins may sound feasible, this would disrupt the balance and vision of having a decentralized currency which is free from any control.