Are centralized cryptocurrencies safe?

[brawdias]

A centralized cryptocurrency is usually safer for its users in terms of hacking, but how about possible Government restrictions?

Are they easier to ban?

[Chris!]

If it's centralized then it's definitely not safer because it has a singular point of failure. If a government decides to shit them down, they're gone. Clearly a decentralized model is more beneficial.

[TryNinja]

Obviously not. The thing that makes Bitcoin secure is that its network is distributed everywhere. So a government would have to turn down every Bitcoin node and miner to "turn off the network".

Meanwhile, if a service is centralized, it's way easier for a government to target its single point of failure and turn off everything (i.e like they do with websites and darknet services);

[mdayonliner]

A centralized cryptocurrency is usually safer for its users in terms of hacking, but how about possible Government restrictions?

Are they easier to ban?

Click here if unable to see image

So if you destroy the centre of A then all gone but for B you will need to destroy each and every node. For me A is easier and the same for others.

Update:

@mdayonliner (B) has a central body too, where did you get that image?
If those were Bitcoin Nodes, it will look like a haywire. (each dot should have a line connected to each of all the dots)

I took it from google and now realised it has been presented wrong. Just updated it.

PS: For readers, previous image was this one (<==== wrong one)

[nc50lc]

Pretty much the same as: Are banks safe? or Is Paypal safe?

When it comes to centralized systems, it all comes down to their integrity. If the developers are trustworthy, endorsed by the Government/prominent users, it could be safe from a ban.

Governments aren't banning coins based on their design.
Did you mean: "Can centralized cryptocurrencies survive even when the Government bans it?"

BTW, the idea is a great alternative to classic systems that requires more solid security like (Central) banks.
@mdayonliner (B) has a central body too, where did you get that image?
If those were Bitcoin Nodes, it will look like a haywire. (each dot should have a line connected to each of all the dots)

[hugeblack]

A centralized cryptocurrency is usually safer for its users in terms of hacking.

I do not know where you came this information, but "don't put all your eggs in one basket " proves your mistake.
When the platform is central, this means that any breakout will result in substantial losses and intensification of protection on the central point.
Just like banks, one hacks every few years, but its losses need decades. Also, it creates a hole in the protection system.

but how about possible Government restrictions?
Are they easier to ban?

Yes, take this site as example https://thepiratebay.org/

[jahn_quid]

Pretty much the same as: Are banks safe? or Is Paypal safe?

When it comes to centralized systems, it all comes down to their integrity. If the developers are trustworthy, endorsed by the Government/prominent users, it could be safe from a ban.

Governments aren't banning coins based on their design.
Did you mean: "Can centralized cryptocurrencies survive even when the Government bans it?"

BTW, the idea is a great alternative to classic systems that requires more solid security like (Central) banks.
@mdayonliner (B) has a central body too, where did you get that image?
If those were Bitcoin Nodes, it will look like a haywire. (each dot should have a line connected to each of all the dots)

I think this is the most nuanced answer here.

While I'm absolutely a crypto supporter, it bewilders me how people here can sometimes parrot lines about centralization as this untenable thing when it's how we've been living in our modern lives. Definitely many things can be improved via distributed, trackable, and trustless processes where we cut out unnecessary brokers and middle men. But let's not pretend we live in some nightmare world where no one is accountable today.

Just like with any technology, time will tell which blockchain application and cryptocurrencies add real value to the world.

[cryptodoe]

I get the feeling that governments would be able to shut down decentralized networks anyway. Remember, they are governments. Resources are more like a way of counting for them, not a limiting factor.

All they have to do is give ISPs the order to block out certain data transactions and voila, it is all gone. I remember at university people had their internet connections blocked for using BitTorrent. That was only a University IT department doing it, not a full blown government!

For the moment, while governments are not stopping cryptocurrencies and so on, then decentralized crytpocurrencies are safe so long as the developers want them to be. If everyone is running your software without question then it should be quite easy to insert bugs which give you centralized control. Even if you don't want to, accidental bugs can lead to significant lacks of safety.

Many projects put their codes on github, but I wonder if this is really relevant. Most people can't read code and most don't bother to read code that isn't their own.


Crypto is safe for the moment because of the philosophy of crypto, and nothing else. But for now it is enough

[Sofiamnc]

A centralized cryptocurrency is usually safer for its users in terms of hacking, but how about possible Government restrictions?

Are they easier to ban?

https://i.imgur.com/B7Pbdbq.png

Click here if unable to see image

So if you destroy the centre of A then all gone but for B you will need to destroy each and every node. For me A is easier and the same for others.

Update:

@mdayonliner (B) has a central body too, where did you get that image?
If those were Bitcoin Nodes, it will look like a haywire. (each dot should have a line connected to each of all the dots)

I took it from google and now realised it has been presented wrong. Just updated it.

PS: For readers, previous image was this one (<==== wrong one)

Great answer to share! Visuals are always easy to understand and the one you posted explains everything itself, thank you very much!

[KingScorpio]

If it's centralized then it's definitely not safer because it has a singular point of failure. If a government decides to shit them down, they're gone. Clearly a decentralized model is more beneficial.

thats not true, centralised currencies where the norm thorughhout human history and will continue to be that.

main reason -> just look at the decentral ones they all are just wasting ressources they are not creating value sources the society can live off,

bitcoin and other decentralised mined coins are just like ghost spoking throught he media, in the end they make everyone poorer.

but some centralised cryptocurrencies are extremly aweful like ripple that is mainly in existance so banksters can scam the others.

central cryptocurrency will come and they will be in usage.

ethereum is for example a very successful central cryptocurrency.

others:

iota, cardano, neo, waves

get used to it

[entrepmind23]

A centralized cryptocurrency is usually safer for its users in terms of hacking, but how about possible Government restrictions?

Are they easier to ban?

Having a centralized currency would be not safer than decentralized ones because when the one who controls the currency will be attack then all of the system will be affected while in decentralized ones, even if one is hack, there is still a bunch who controls the system so it cannot be easily destroyed. As for Government restriction, if they decide to make the centralized currency then they can just easily shut it down since they are the own who controls it as oppose to decentralize ones wherein no one has full control of the currency.

Since centralized cryptocurrency is controlled, they are easier to ban as well. If some of the countries would like to oppose the current decentralized cryptocurrencies then I think they would create their own cryptocurrency to combat it and only allow its citizens to use it. Centralized cryptocurrency is just analogous to fiat currency anyway since government has control of it.

[liseff3]

Digital currencies are usually decentralized and it's generally much safer than centralized. Because, cryptocurrency has been designed by solving math problems based on cryptography.

Centralized cryptocurrency meaning involving a third party which can be played by a bank or government (human) which usually consists of several regulations and certain limitations so that it can be said to be far from efficiency and effectiveness. So its existence can be said easier to be prohibited.

[darkangel11]

thats not true, centralised currencies where the norm thorughhout human history and will continue to be that.

main reason -> just look at the decentral ones they all are just wasting ressources they are not creating value sources the society can live off,

That's what I call the view of a leftist. "Everything has to create value for the society, we should all be working for the common good, stop wasting resources you unproductive waste of space, go work, do something for others!"
You guys should wake up and realize that socialism is a cancerous system. You're not in the position to be telling people what they can waste or not and how they should live, it's their choice, not your dictatorship. If I want to waste my money on something or be unproductive and sleep all day, it's my choice.

Why don't you guys focus on the resources that you are wasting every day by leaving appliances on standby, forgetting to turn off the lights when you exit a room, using toilet paper instead of washing your butt with water every time you take a dump. This argument about BTC being unproductive is simply dumb.

[suzanne5223]

Centralized cryptocurrency are best option when it come to hacking and theft but it isn't the best option if the government or the regulators intervene and anything can happen they does cause they have the power to control the cryptocurrency which is why Satoshi believes it better if bitcoin is decentralized so that masses,the mid and higher classes can both enjoin the system.

[KingScorpio]

A centralized cryptocurrency is usually safer for its users in terms of hacking, but how about possible Government restrictions?

Are they easier to ban?

centralised cryptocurrencies are more useful than decentral ones that only waste ressources and make everyone poorer,

they are inevitable people will want those

[cengsuwuei]

A centralized cryptocurrency is usually safer for its users in terms of hacking, but how about possible Government restrictions?

Are they easier to ban?

all crypto curency decentralized not centralized
maybe only xrp coin centralized, centralized coin is not good because all coin still have and control founder

[KingScorpio]

thats not true, centralised currencies where the norm thorughhout human history and will continue to be that.

main reason -> just look at the decentral ones they all are just wasting ressources they are not creating value sources the society can live off,

That's what I call the view of a leftist. "Everything has to create value for the society, we should all be working for the common good, stop wasting resources you unproductive waste of space, go work, do something for others!"
You guys should wake up and realize that socialism is a cancerous system. You're not in the position to be telling people what they can waste or not and how they should live, it's their choice, not your dictatorship. If I want to waste my money on something or be unproductive and sleep all day, it's my choice.

Why don't you guys focus on the resources that you are wasting every day by leaving appliances on standby, forgetting to turn off the lights when you exit a room, using toilet paper instead of washing your butt with water every time you take a dump. This argument about BTC being unproductive is simply dumb.

ohm jes well then it is also socialist to not surpress bitcoin propaganda in the internet, people should defend themselves from living under a civilisational tooth decay that bitcoin is.

its also socialist, to not confiscate miners or not to demand extra taxes from so called "miners"

why is "bitcoin" the currency of the future and not other 23000 cryptocurrencies accepting bitcoin as it is also socialist, as bitcoin pretends also to be socialist by everyone is able to mine it, dening the fact of the pyramid it is.

[pooya87]

all that was said is true but they are forgetting the biggest risk of all! you are talking about money, a currency that is centralized and is in control of one person or a group of people who are not even running a regulated or legal thing. they can take your money from you and there is nothing you can do about it.
for example Ripple foundation can easily put their hand in any user's wallet and take their XRP for themselves. you can't do anything about it since XRP is not a currency according to law and it is something they own and just let you use temporarily. and they actually have done it at least once to one of their own developers! they simply robbed his coins.

you see it is not about government, hacking, banning,... it is all about "control" being in hands of shady people who can abuse that power any time they want.

[Baoo]

Well, I think that all these threats and attacks by the governments do not adversely affect on the digital currencies. In fact, in the last period, there was a collective ban ( Twitter, Facebook, Google..) and certainly those decisions taken   by governments  (pressure), but fortunately, this did not affect negatively on the decline in currency prices. Actually, in this era, no one can destroy Bitcoin and even there will be  coalition of all governments, but will not be able to do that because Bitcoin is very secure.

On the other hand, I think that the governments will lose hope of those goals (destroying Bitcoin or cryptocurrencies in general), and it is expected that if they will find a solution the issue of not controlling the financial transactions for digital currencies and other problems, then it is certain that there will be a global recognition of Bitcoin in most of the countries as a legal currency.

[darkangel11]

ohm jes well then it is also socialist to not surpress bitcoin propaganda in the internet, people should defend themselves from living under a civilisational tooth decay that bitcoin is.

its also socialist, to not confiscate miners or not to demand extra taxes from so called "miners"

why is "bitcoin" the currency of the future and not other 23000 cryptocurrencies accepting bitcoin as it is also socialist, as bitcoin pretends also to be socialist by everyone is able to mine it, dening the fact of the pyramid it is.

What is that you're rambling about? Actually suppressing propaganda has been best used by the socialism. Goebbels was the master of this trade.
If your opinion about BTC is that it's a pyramid scheme (which was disproved multiple times), we don't really have much to talk about because you most likely are purposely trolling. I'll just live this here for you:

Bitcoin doesn’t generate returns. It’s just software. The price of Bitcoin is directly correlated to its scarcity and demand. The demand is not forced on others, nor do Bitcoin’s biggest proponents go around asking people for money and telling them to invest more into Bitcoin. New users that join the Bitcoin network don’t fund the older users with new money. Not at all. It’s just plain lazy to make this assertion.