Exchange will go out of business if every Bitcoin is hold in private wallet

[Iroh]

Exchanges may have hard their bad influence on the cryptocurrency industry most especially the centralized exchange who has been nothing but tools in the hands of regulators and CEOs who act unilateral against the customer's will and have 100% control over the balance on the exchange.

Governments do their jobs by keep most of things in their control but I disagree to say centralized exchanges are tools of regulators and governments. Before stricter regulations on cryptocurrency market, we don't have enough evidence to make this conclusion.

I also disagree with the idea that exchanges have a bad influence on the crypto industry. We cannot deny that centralized exchanges have made a great contribution to helping users to access the market easily, they provide us with a lot of necessary services in the market. I firmly believe that most of the new investors entering the market come through centralized exchanges which are an easy place to start for newbies if they want to get bitcoins quickly and securely.

Maybe bitcoin holders don't need an exchange, but the crypto market certainly does, and exchanges are an important part of the market.

Exchanges like every other business is there for the business and also to make profits. They’re not necessarily a bad influence in the cryptocurrency industry. They have also got their uses in helping users buy and sell crypto assets. Some individuals today first heard, accessed and bought bitcoin through an exchange.
Although it has been reiterated countless times about how dangerous it is to leave your coins on the exchanges after purchase, people still feel somewhat comfortable leaving their coins there which is not too good.
Overall, I think exchanges have got a role to play in the adoption and growth of bitcoin and can’t be thrown aside.

[1715293697]

1715293697

[Jawhead999]

You're really blame centralized exchange when the main problem why many people lost their funds are because their own fault/stupidity? there's no centralized exchange ever suggest their customers to leave their coins on their account! Just use the exchange like marketplace where you buy or sell the coin, then send it back to your non custodial wallet.

Although I always advice to everyone to stay away from centralized exchange, but for most people who don't care with privacy, I wouldn't blame them since it's their own choice and it help Bitcoin adoption.

[danadc]

Exchanges may have hard their bad influence on the cryptocurrency industry most especially the centralized exchange who has been nothing but tools in the hands of regulators and CEOs who act unilateral against the customer's will and have 100% control over the balance on the exchange.

Governments do their jobs by keep most of things in their control but I disagree to say centralized exchanges are tools of regulators and governments. Before stricter regulations on cryptocurrency market, we don't have enough evidence to make this conclusion.

I also disagree with the idea that exchanges have a bad influence on the crypto industry. We cannot deny that centralized exchanges have made a great contribution to helping users to access the market easily, they provide us with a lot of necessary services in the market. I firmly believe that most of the new investors entering the market come through centralized exchanges which are an easy place to start for newbies if they want to get bitcoins quickly and securely.

Maybe bitcoin holders don't need an exchange, but the crypto market certainly does, and exchanges are an important part of the market.

The exchanges are businesses that cannot be closed and they have to live at the expense of whatever happens in the world, it is the easiest way for people to move their money, but it is a safer way than making movements from a bank The bad thing that I have seen is that the exchanges that are more reliable are centralized and have many KYC requirements that do not please and that makes the control much stronger, and crypto with control that does not match, the recent events with FTX It was the trigger that was expected so that everyone would not hesitate to move their money to their private wallet, it is the safest way to have the money.

[sulendra12]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

Pretty sure they will still run if some traders decide to hold in private wallet
- Majority of people out there still uses centralized exchanges to sell their assets including Bitcoins and want to withdraw it to anywhere else like Bank and also some of them don't bother to send it to private wallet as long as they think the exchange is still "secure" enough to hold their assets. For people that still have small amount of budgets in their wallet on exchanges and then they don't bother to do it. So exchanges still win here.
- Trades fees goes into exchanges wallet for every transaction you make and with how many people uses exchanges daily then they'd rack up some money over time.

Correct me if I'm wrong.

[Tanvi50_]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

Bitcoin belongs to its own blockchain. And everything existing on other chains are just tokens TBH. And removing all the BTC from CEX to a private cold wallet won't change the fact that centralized exchanges have other tokens too. In order to keep their business running, they can always use those for trading and other things. BTC does holds a large amount of assets in CEX but they can always run the whole thing without BTC.
This is just my thought.

[irhact]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

Only a small percentage is doing this as we have reports of millions been lost in every exchange hack or when they collapse. This thread was started before the FTX collapse yet millions were still lost in that too. We can't do away with the fact that centralized exchange will be getting a fair share of usage and people will trust them to store their Bitcoin for them even though they're not the best option.

I don't think anybody wants the exchange to go out of business as they provide means of exchange to their users but what is been fought against is the idea of storing your coins on exchange. Make use of exchange but only for trading and not for storing of your Bitcoin.

[GreatArkansas]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

(.....)
I don't think anybody wants the exchange to go out of business as they provide means of exchange to their users but what is been fought against is the idea of storing your coins on exchange. Make use of exchange but only for trading and not for storing of your Bitcoin.

Exactly. For me, these cryptocurrency exchanges will stay as, like fiat currency exchanges, the gold exchange is here. The cryptocurrency exchange will stay and it has a lot of uses. The problem with centralized exchange and funds being stolen or lost is because of 3rd party that you let your Bitcoin held by them and in their custody, at the time you deposited your Bitcoin to their account, you already don't have control over your Bitcoin, it's already on their wallet.
That's why a lot of people already suggested, never to store huge amount of funds cryptocurrency exchange, don't use it as personall wallet.

[Tommiewill]

Well, most people do not care about the concept of "freedom of wealth" and "true ownership" of their Private keys, because they care about things like convenience and shifting the responsibility of "security" to third party service providers. They do this, because that is what traditional centralized institutions sold them on.....

The centralized authorities told them that only they can provide "security" for savings .... so they accepted that as the norm. It will take a lot of education to break this standard that has been set by Banks and other centralized financial institutions. 

People are selfish. The purpose of transferring the responsibility to a third-party service is so that you don’t have to be responsible for the loss of your money, and you can ask a third party to hold you accountable. People have developed the habit of shifting responsibility for "safety" since childhood. It is also difficult to break this habit.

[btc78]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

for long centralized exchange had been attacked by users who understand the safety of their coins outside of their hands so private wallets are the safest , Not your Key Not your Bitcoin so why need to store in exchange ?

I only use exchange sometimes when I need to round out my funds or if needed to use p2p in to our local wallet.

[OgNasty]

Looks like Binance is now experiencing a bank run. Get your funds off Binance immediately if you have any on there. These bank runs are happening all over crypto and Binance is today’s target. I would not only get your funds off Binance, if you own any BNB it may be time to sell that and move the funds into BTC or if you have to, ETH. Not doing anything now could have disastrous consequences. Act now.

[Fivestar4everMVP]

Looks like Binance is now experiencing a bank run. Get your funds off Binance immediately if you have any on there. These bank runs are happening all over crypto and Binance is today’s target. I would not only get your funds off Binance, if you own any BNB it may be time to sell that and move the funds into BTC or if you have to, ETH. Not doing anything now could have disastrous consequences. Act now.

If you are confident that this information is of utmost importance and really want people to take action on it, I suggest starting a new topic with it, that is how you can reach alot of users, I don't have any stats to back this up but personally, I believe that most users here don't really comment, except one that is a reply to theirs(that is a reply(quote) to their comment).

So it is just my humble opinion, since personally, I think this information is really important if it is genuine, so if you have your source and trust it to be really genuine, then it will be best you turn this to a new topic, to reach as many as come on this board.

[Ojima-ojo]

Looks like Binance is now experiencing a bank run. Get your funds off Binance immediately if you have any on there. These bank runs are happening all over crypto and Binance is today’s target. I would not only get your funds off Binance, if you own any BNB it may be time to sell that and move the funds into BTC or if you have to, ETH. Not doing anything now could have disastrous consequences. Act now.

If you are confident that this information is of utmost importance and really want people to take action on it, I suggest starting a new topic with it, that is how you can reach alot of users, I don't have any stats to back this up but personally, I believe that most users here don't really comment, except one that is a reply to theirs(that is a reply(quote) to their comment).

So it is just my humble opinion, since personally, I think this information is really important if it is genuine, so if you have your source and trust it to be really genuine, then it will be best you turn this to a new topic, to reach as many as come on this board.

I have read similar warning somewhere on Reddit now it is clear that the binance bank run is off already with the money laundering, case against binance I will suggest everyone stay off binance for the main time and this is the best time to hold bitcoin or other altcoin like ETH till further notice let say till after bitcoin halving everyone should keep they funds off centralized exchange.

FTX own case was the beginning of a bigger war against centralized cryptocurrncy exchanges.

[GeorgeJohn]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

I have understand the point you are trying to make, obviously your point has been narrated some years back, because i have come across of this particular statements of not leaving your Bitcoin in an exchange because it can be hack or lost at any point in time, the process whereby your coin can be served is the process whereby your keep your coin a wallet is not exchange.

[lixer]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

I have understand the point you are trying to make, obviously your point has been narrated some years back, because i have come across of this particular statements of not leaving your Bitcoin in an exchange because it can be hack or lost at any point in time, the process whereby your coin can be served is the process whereby your keep your coin a wallet is not exchange.

Not only in the past but even until now, statements like that are always being repeated and serves as a reminder for those who forgot it and also for those who are new in cryptos. BTC being pulled out inside a crypto exchange and then kept in a personal wallet is a good idea but it doesn't remove the fact that we will not be hacked anymore or lost our coins. We still can if we are careless on what we are doing.

This is why in everything that we do, we must always be cautious and do a research first if you are not familiar on that thing your are dealing with. Double checking things (i.e if the wallet address is correct) before sending a coin is another thing that we should practice.

[Iroh]

You're really blame centralized exchange when the main problem why many people lost their funds are because their own fault/stupidity? there's no centralized exchange ever suggest their customers to leave their coins on their account! Just use the exchange like marketplace where you buy or sell the coin, then send it back to your non custodial wallet.

Although I always advice to everyone to stay away from centralized exchange, but for most people who don't care with privacy, I wouldn't blame them since it's their own choice and it help Bitcoin adoption.

Yeah, I think the main problems are the individuals who despite all the warnings and glaring signals, still choose to leave their funds on centralized exchanges and not the exchanges themselves. The centralized system xchamges are like you said, a market place where you could buy and sell your coins.

Recently, there is a scare making the rounds about binance going under. The scare is right now causing folks to take their funds off there. I wouldn’t call the scare a welcome development but it helps serves a purpose to remind people that centralized and exchanges are never to be trusted with your coins. 

[Jatiluhung]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet. You only send real Bitcoin when you do it on a p2p level and you don't own Bitcoin when your coins are stored on an exchange all you have is just promises and not Bitcoin if your Bitcoin is on the third party exchange.

I have understand the point you are trying to make, obviously your point has been narrated some years back, because i have come across of this particular statements of not leaving your Bitcoin in an exchange because it can be hack or lost at any point in time, the process whereby your coin can be served is the process whereby your keep your coin a wallet is not exchange.

because from the beginning the exchange was just a place to sell and buy every bitcoin and crypto only. not to store in a long time there. We must realize this important point from the start. but most people forget about the function of the exchange itself and instead think of exchanges as personal wallets, that is, they store their assets on exchanges, even though this is certainly a wrong action. because Exchange is not a place to save. but only as a place to sell and buy (exchange). and after the transaction is complete, we have to move our assets back to our personal wallet.

[Stepstowealth]

 

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

Exchanges provide other services apart from being used as a wallet, not all will not go out of business, the smart one's will find a way to stay important, maybe they will focus more and work on improving another service they offer. The ones that can adjust will survive, the ones that cannot adjust will be the ones to go out of business.

[carlfebz2]

Bitcoin is already winning the war against the centralization of Bitcoin services, and a lot of Bitcoin holders are beginning to realize the safety of their Bitcoin when it is off the exchange and kept in a private wallet.

Exchanges provide other services apart from being used as a wallet, not all will not go out of business, the smart one's will find a way to stay important, maybe they will focus more and work on improving another service they offer. The ones that can adjust will survive, the ones that cannot adjust will be the ones to go out of business.

Come to mind off that the only way on cashing out your coins or crypto into fiat excluding direct p2p is in going through exchange platforms, not all would really be that confident on having that p2p transactions

and this is where exchangers do really play their role and even though it is really something that do talks about centralization but still cant avoid that there are services which these platforms
could able to do.

This is why they are really that getting much attention or in demand despite on being centralized.People are aware but they could bare up with the risk.
Thing here is that you shouldnt really make them as your main wallet.Period.

[CryptSafe]

Before I proceed, I want to ask you a question. Do you really agree with me that without exchange bitcoin  circulation and recognition would not have attained this height. I understand the fact that these days, Third party exchanges are best and good at conducting trade and all is still very much good. It does not necessarily mean that they would fall though in some cases, they are better than nothing. Exchange is for the smooth  facilitating and circulation of your Bitcoin globally. People tend to buy more from exchange than holding a p2p transaction. So therefore you know what that probably means. Exchange can't do without bitcoin
And bitcoin needs the help of the exchange to facilitate easier purchase and ownership

[hd49728]

Exactly. For me, these cryptocurrency exchanges will stay as, like fiat currency exchanges, the gold exchange is here. The cryptocurrency exchange will stay and it has a lot of uses. The problem with centralized exchange and funds being stolen or lost is because of 3rd party that you let your Bitcoin held by them and in their custody, at the time you deposited your Bitcoin to their account, you already don't have control over your Bitcoin, it's already on their wallet.
That's why a lot of people already suggested, never to store huge amount of funds cryptocurrency exchange, don't use it as personall wallet.

There are demands to use exchanges and people need exchanges to use like they need central banks to use. So central banks, centralized exchanges and decentralized exchanges will continue to exist and expand their business. For me, it won't be changed and none of them will disappear.

It is just at the moment, it is risky to store money on centralized exchanges. People should more seriously use their self custody wallets before everything about centralized exchanges and consequences from FTX collapse become more clearly.

Even everything is clearer, safer, they still should store most of their cryptocurrency in self custody wallets, not on exchange accounts.