How would crypto fare without centralized exchanges?

[LUCKMCFLY]

If crypto becomes extremely popular in the future (widely adopted by a vast majority of people worldwide), it's probable governments will turn against it. They can pressure centralized exchanges to close up shop or face serious consequences in the long run. After all, these exchanges are the on and off ramps from the crypto world to the Fiat world. While not every country is against crypto, they might change their stance once they see Russia using it as a means to avoid sanctions.

Imagine if most countries unilaterally agree on banning centralized exchanges for good. Will that mean the end of crypto for good (even though it would still be possible to get some crypto through decentralized exchanges)? After all, most people will be afraid of using crypto if it's declared "illegal". The ban of centralized exchanges will surely topple crypto prices, signaling fear among investors and traders alike.

What are your thoughts?

Centralized exchanges aren't going anywhere, they will become more regulated though. Going along with your thought exercise though, a smart contract would emerge that integrates non-smart contract blockchains and allows trading, like the internet computer or Flare/Songbird.

For me, centralized Exchanges have many advantages, at least when there is a problem they can solve it, but of course if you have a Completed KYC, the problem I see with decentralized exchanges is that a wrong contract means the total loss of the funds that are deposited, and the bad thing about decentralized exchanges is that most of them surrender at the feet of governments or authorities, that's what I don't like, as is the case with Binance.

Some centralized exchanges have more options to be like this, but in support of any inconvenience they are very fast.

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[Abiky]

For me, centralized Exchanges have many advantages, at least when there is a problem they can solve it, but of course if you have a Completed KYC, the problem I see with decentralized exchanges is that a wrong contract means the total loss of the funds that are deposited, and the bad thing about decentralized exchanges is that most of them surrender at the feet of governments or authorities, that's what I don't like, as is the case with Binance.

Some centralized exchanges have more options to be like this, but in support of any inconvenience they are very fast.

Centralized exchanges often have better performance than decentralized exchanges due to the way they were designed. But they do come with their risks. If there's a government crackdown, the exchange gets hacked, or the owner closes up shop, you can say goodbye to your crypto funds for good (if you left coins on the exchange, of course). With decentralized exchanges, the risk of hacks or theft are practically non-existent. Governments can't shut them down neither, so there's that. What really prevents them from being widely adopted worldwide is their scaling limitations.

With high network load, decentralized exchanges often become slower and expensive to use than their centralized counterparts. If by any chance centralized exchanges cease to exist (which is very unlikely right now), it's likely developers will improve decentralized exchanges for the better. I'm guessing DEXs will rely on off-chain scaling solutions (Layer-Two) to gain performance as comparable as centralized exchanges. As long as people have a choice, nothing else matters. Just my thoughts

[Blowon]

I don't think that far because it looks like the government is looking to legalize crypto in several countries in the world, it's proven because some countries have taken taxes from cryptocurrency production. Even though there are some weaknesses of cryptocurrencies, the existence of a supportive government will cover these shortcomings so that it is possible for cryptocurrencies to last for a long time as a commodity investment asset.,

[Ezravdb]

I don't think that far because it looks like the government is looking to legalize crypto in several countries in the world, it's proven because some countries have taken taxes from cryptocurrency production. Even though there are some weaknesses of cryptocurrencies, the existence of a supportive government will cover these shortcomings so that it is possible for cryptocurrencies to last for a long time as a commodity investment asset.,

I agree with the review you said because in the country where I live now such a thing has also been implemented so that when there is a cryptocurrency transaction on several local exchanges, the user will be taxed a certain percentage of the transaction, which means the government has agreed to the existence of cryptocurrency in country.

[Abiky]

I don't think that far because it looks like the government is looking to legalize crypto in several countries in the world, it's proven because some countries have taken taxes from cryptocurrency production. Even though there are some weaknesses of cryptocurrencies, the existence of a supportive government will cover these shortcomings so that it is possible for cryptocurrencies to last for a long time as a commodity investment asset.,

As long as there's a single country supporting crypto/Blockchain tech, centralized exchanges won't be going anywhere soon. I doubt all of the world's governments will turn against crypto since it brings huge taxation benefits in the long term. Decentralized exchanges are good, but they can't outmatch their centralized counterparts in terms of performance and ease-of-use. They'll only remain as an alternative than a replacement of traditional exchanges.

Ultimately, people will get to decide which type of exchange to use for their own benefit. With how far crypto has gone so far, it seems that centralized exchanges will be here to stay for a long, long time. Just my opinion