Quote from: nullama on January 03, 2023, 06:48:30 AM

Quote from: Hispo on January 03, 2023, 01:53:57 AM

~snip~
My prediction of Bitcoin without centralized exchanges it would be a market with less volatility and less daily volume, the price would be about the same maybe, I am not sure.
With enough time the lack of convenience and comfort would have gotten solved, though. There is already one project of decentralized exchange for Bitcoin which I have heard of (Bisq), but we all got used to businesses like Binance and Coinbase.

If you remove all the "IOU Bitcoin" from centralized exchanges, the price per unit of Bitcoin would just go incredibly higher.

Think about why companies like FTX went bankrupt, they just don't have the money that people put in there. They lend it to other people, they gamble it, etc. Basically they try to create more money out of thin air, but you cannot do that with Bitcoin.

The moment people withdraw Bitcoin to their own wallets, that means they actually have to give them real money. And that's when they go bankrupt. They tried to create more Bitcoins, but of course failed to do so.

So, if there's less Bitcoin available, price would go up.

What about Binance? Regarding the FTX crash, Binance also processed over $6 billion in exchange withdrawals without any issues. Is that " IOU bitcoin"? Bitcoin could still work without an exchange, but I assure you it would not be as popular and valuable as it is today without an exchange.

A newbie who wants to invest in bitcoin and use p2p is unreliable, and without an exchange, they have no way to enter the market. If bitcoin has no trades, it means it has no demand and will make bitcoin unpopular and unable to increase in price. Exchanges are extremely important to the growth of bitcoin and to us.