When I asked them can they be really sure that same thing won't happen with Binance, they told me that even if something happens to Binance, prices will go down so much that it won't matter anyway.
Nonsense. We've just had more than a dozen exchanges or other centralized platforms collapse, and the price is pretty much at a six month high. If Binance collapses then sure, there will be short term price fluctuations, but bitcoin will come out the other side just fine, just as it always does.I guess in the end people will keep doing what they have been doing. Be it with fiat / crypto or whatever.
Yup, it's an absolute mess. And of course, that doesn't even scratch the surface, since you can easily add on dozens of other exchanges to that diagram and there will be hundreds of deals and arrangements going on that we have no idea about. And of course with fiat or any bitcoin you don't keep in your own wallet, then any money you "own" is somewhere in all that mess, handed over to who knows who for who knows what.Perhaps we could make a similar diagram for self custody. It would be very simple. It would look like this:
| - | - - - - - - - - | - |
| - | - | |
| - | My wallet | - |
| - | - | |
| - | - - - - - - - - | - |
