The crypto community is getting bigger on daily basis, new institutions, big investors and country leaders/government are taking into use Bitcoin and some other crypto currencies. Because the system is not centralized, there are still some people who are skeptical in investing.
Crypto Exchanges being the market place for buying and selling, do you think the Decentralized Exchange and Centralized Exchanges will be on an equal treatment or one with power will suppress the other as per government involvement in one and not in the other on the long run?
What are your thoughts on this?
That's a great question. The idea behind decentralized exchanges doesn't seem bad, but for now, it's not even a competition, as centralized exchanges are obviously dominant. I was trying to find some data, and at least based on what
Coingecko is tracking, 24-hour volume of decentralized exchanges is a mere 12 billion USD out of 86 billion USD globally. So it's just a share of around 15%. And so far, I don't see why that would change in the future.
Even if there is a change, it will be a more negative change, meaning that DEX activity will continue to shrink instead of possibly becoming larger to compete with CEXs. Once the government gets involved, it means there will be less room for decentralization, privacy...That is the price we pay for wanting the government to legitimize and promote the growth of the crypto industry and send prices to the moon.
They are slowly removing privacy, anonymity from the industry by shutting down a bunch of mixers and now many governments are slowly banning privacy coins...They may not go extinct completely, but there will be very few people using them anymore.