What will happen when only large institutions can afford to use Bitcoin's blockchain, due to rising fees? Won't this centralize the network if most can only trade bitcoin on centralized exchanges?
It wouldn’t centralize Bitcoin but yes, it’ll affect the rate at which people transact with it. But know that no matter how high the transaction fee gets, Bitcoin will always be decentralized and you are not forced to use a centralized exchange to transact with it. But I hope it doesn’t get to that point because I can’t imagined how bad that would be.