I did some research on Bitcoin because I was interested in it, and I discovered that the key principles of Bitcoin are peer-to-peer, anonymity, pseudonymity, decentralization, and operating without a middleman to ensure that Bitcoiners can have financial freedom. However, despite knowing that Bitcoiners adhere to these tenets, why do some Bitcoiners act contrary to them? Why do they continue to support centralized exchanges, use them, and retain their Bitcoin there?
No serious Bitcoin enthusiast would endorse centralized exchanges. Decentralized Bitcoin exchanges existed prior to the dominance of centralized exchanges, and the primary reason for the latter's growth is their proficiency in marketing and promotions, as well as their ability to influence politicians and gain their favor to operate in a given country. Additionally, since the world is already entrenched in the banking system, many individuals prefer the ease of use of centralized exchanges. However, the drawbacks of centralized exchanges far outweigh any benefits they may offer.
Another reason why Centralized exchanges are everywhere is that the pseudonymous nature of Bitcoin makes it difficult for governments to regulate transactions, they prefer centralized exchanges where they can quickly verify users' identities and transactions and freeze assets if necessary. Governments understand that they cannot control coins that are unidentifiable or untraceable, hence the need for centralized exchanges to silent decentralization.