If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.
Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.
What are your thoughts?
Centralized exchanges aren't going anywhere, they will become more regulated though. Going along with your thought exercise though, a smart contract would emerge that integrates non-smart contract blockchains and allows trading, like the internet computer or Flare/Songbird.Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.
What are your thoughts?
For me, centralized Exchanges have many advantages, at least when there is a problem they can solve it, but of course if you have a Completed KYC, the problem I see with decentralized exchanges is that a wrong contract means the total loss of the funds that are deposited, and the bad thing about decentralized exchanges is that most of them surrender at the feet of governments or authorities, that's what I don't like, as is the case with Binance.
Some centralized exchanges have more options to be like this, but in support of any inconvenience they are very fast.