"master nodes arent untraceable"
Doesn't monero have nodes? Yes? Are they untraceable?
Monero doesnt need nodes for mixing, If you use that argument than bitcoin is also centralized which is of course non-sense because its a p2p network.
Who said anything about mixing? Argument was that a government could take down the nodes of a coin or hold people running one liable for breaking whatever law.
"Masternode centralization problem"
Doesn't monero have nodes? Yes? => "centralization problem"
Nonsene again, of course a p2p network uses nodes thats why its DECENTRALIZED.
Exactly, masternodes and regular wallets form a decentralized network.
But if you use "special" nodes for special tasks with closed source software all hosted at amazon, ovh and digital ocean...its hardly decentralized, i am just waiting for the first reports of abused and confiscated mixing nodes and people losing their money...
Source will be opened, in not so far future. And, when running a masternode, you can keep your 1000 coins in a local cold wallet, and the masternode's wallet doesn't even have to be encrypted! It doesn't hold any coins!
The reason that Amazon has so many masternodes, is because the first step-by-step guide to run one used Amazon as an example. This will change in time I'm sure. Here is the current node distribution by operator:
http://drk.poolhash.org/darksend.html