How important are exchanges?

[nullama]

~snip~
My prediction of Bitcoin without centralized exchanges it would be a market with less volatility and less daily volume, the price would be about the same maybe, I am not sure.
With enough time the lack of convenience and comfort would have gotten solved, though. There is already one project of decentralized exchange for Bitcoin which I have heard of (Bisq), but we all got used to businesses like Binance and Coinbase.

If you remove all the "IOU Bitcoin" from centralized exchanges, the price per unit of Bitcoin would just go incredibly higher.

Think about why companies like FTX went bankrupt, they just don't have the money that people put in there. They lend it to other people, they gamble it, etc. Basically they try to create more money out of thin air, but you cannot do that with Bitcoin.

The moment people withdraw Bitcoin to their own wallets, that means they actually have to give them real money. And that's when they go bankrupt. They tried to create more Bitcoins, but of course failed to do so.

So, if there's less Bitcoin available, price would go up.

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[russselcarri]

Exchanges became the heart and soul of this industry. With a vast array of cryotocurrencies that exist on the market, trading them along with withdrawal and deposit options is surely a good idea not only to make money, but to also increase accessibility within the space. That's why exchanges, whether DEx or CEx, are integral in this industry.

Of course this is the case, and the function settings of many exchanges are still very practical. The frequent problems of centralized exchanges depend entirely on whether the founders are evil. This is the key.

[TalkativeCoin]

Exchanges became the heart and soul of this industry. With a vast array of cryotocurrencies that exist on the market, trading them along with withdrawal and deposit options is surely a good idea not only to make money, but to also increase accessibility within the space. That's why exchanges, whether DEx or CEx, are integral in this industry.

Of course this is the case, and the function settings of many exchanges are still very practical. The frequent problems of centralized exchanges depend entirely on whether the founders are evil. This is the key.

This pretty much sums it up. This is the main difference between them and the legacy banks, not so much if they're "good" or "evil" per sei, but maybe more so how they present and conduct.

[Agbe]

Bitcoins can exist without exchanges, but would you support the argument that the existence of exchanges are among the factors facilitating the popularity and accessibility that people have to bitcoins?

My brother the existence of exchange in the crypto ecosystem space helps a lot in the distribution of bitcoin in the world. Exchange make things easier for the industry, if we use peer to peer, most of us can't even sell or buy 0.0009 BTC a week because it is not everyone accept bitcoin in the locality. P2p can not be seen in everyday and everywhere but with the exchange platforms every day and anytime one can buy and sell. So exchange platforms means a lot in the cryptocurrency ecosystem.

The centralized exchange platforms, the ones I know do not charge transaction fees but the decentralized exchange platforms charges transaction fees. Though all have there advantage and disadvantage

[Jody.Drummer]

Bitcoins can exist without exchanges, but would you support the argument that the existence of exchanges are among the factors facilitating the popularity and accessibility that people have to bitcoins?

Bitcoin in another way round can exist without exchanges, and if it does it will be very difficult to have a Bitcoin transaction that will give you Fiat currency, because P2P is very hard before you can as well see the transaction with very big amount, i will tell you that exchanges is what means the transaction of Bitcoin with fiat currency to be very simple and easier for us.

Having an exchange actually makes bitcoin grow and you can even say rapidly because with an indirect exchange it will be a way to elevate bitcoin in terms of price.
This can be a quite important role, in fact, even though bitcoin can exist without an exchange, on the other hand, it would be great if there was an exchange, and now we are already feeling the impact of the current exchange.

[GeorgeJohn]

Bitcoins can exist without exchanges, but would you support the argument that the existence of exchanges are among the factors facilitating the popularity and accessibility that people have to bitcoins?

Bitcoin in another way round can exist without exchanges, and if it does it will be very difficult to have a Bitcoin transaction that will give you Fiat currency, because P2P is very hard before you can as well see the transaction with very big amount, i will tell you that exchanges is what means the transaction of Bitcoin with fiat currency to be very simple and easier for us.

Having an exchange actually makes bitcoin grow and you can even say rapidly because with an indirect exchange it will be a way to elevate bitcoin in terms of price.
This can be a quite important role, in fact, even though bitcoin can exist without an exchange, on the other hand, it would be great if there was an exchange, and now we are already feeling the impact of the current exchange.

That's the exactly the point i tried to rise, because it's very obvious that without an exchange Bitcoin will not be interested to some people to partner with, so the use or the establishment of an exchange is what really makes Bitcoin to be well known and many people began to develop interest. So it would have been very difficult from my perspective to convert Bitcoin to fiat currency if assume their was no exchanges.

[nara1892]

My prediction of Bitcoin without centralized exchanges it would be a market with less volatility and less daily volume, the price would be about the same maybe, I am not sure.
With enough time the lack of convenience and comfort would have gotten solved, though. There is already one project of decentralized exchange for Bitcoin which I have heard of (Bisq), but we all got used to businesses like Binance and Coinbase.

Agree with this, because regardless of anything the exchange will also affect the volatility especially in this case and most likely as you said when it comes to bitcoin without an exchange there even though it will still grow but this will probably be less when compared to the exchange there . because indeed this is not a figment for me maybe even I can be said that I still have more dependence on some of the exchanges that you mentioned.

[Sikinkato]

Bitcoins can exist without exchanges, but would you support the argument that the existence of exchanges are among the factors facilitating the popularity and accessibility that people have to bitcoins?

Exchanges play a big role in the crypto market by making it easier to buy, sell and trade cryptocurrencies.
The presence of exchanges also has a big impact on Bitcoin popularity. Make holders more convenient and comfortable, and make it easier for more people to enter the market.

[jeraldskie11]

~snip~
My prediction of Bitcoin without centralized exchanges it would be a market with less volatility and less daily volume, the price would be about the same maybe, I am not sure.
With enough time the lack of convenience and comfort would have gotten solved, though. There is already one project of decentralized exchange for Bitcoin which I have heard of (Bisq), but we all got used to businesses like Binance and Coinbase.

If you remove all the "IOU Bitcoin" from centralized exchanges, the price per unit of Bitcoin would just go incredibly higher.

Think about why companies like FTX went bankrupt, they just don't have the money that people put in there. They lend it to other people, they gamble it, etc. Basically they try to create more money out of thin air, but you cannot do that with Bitcoin.

The moment people withdraw Bitcoin to their own wallets, that means they actually have to give them real money. And that's when they go bankrupt. They tried to create more Bitcoins, but of course failed to do so.

So, if there's less Bitcoin available, price would go up.

I agree with you, but we can't deny that centralized exchanges is better than decentralized in terms of "faster transactions". And this is one of the reasons why Bitcoin price increased so high. There are many people attracts to Bitcoin because of that and its features not difficult to understand. But the only disadvantage for me is it's transaction fee.

[nullama]

~snip~
I agree with you, but we can't deny that centralized exchanges is better than decentralized in terms of "faster transactions". And this is one of the reasons why Bitcoin price increased so high. There are many people attracts to Bitcoin because of that and its features not difficult to understand. But the only advantage for me is it's transaction fee.

If you use lightning you will have an almost instantaneous transaction and the fees will be almost nothing.

You can't really beat that, because you get the benefits of Bitcoin with the scalability of lightning.

[TalkativeCoin]

We also need to remember that not everything revolves around Bitcoin, the majority, yes, but there are other cryptocurrencies, so we need to have a medium.

[Mahanton]

I believe they are significant because they enable our transactions, hold our assets, and assist us in investing in a more simpler manner through their software, and I believe they are functional in many other ways.

The main use of exchangers are simply making users do able to make buy and sell in between different coins that been offered and the best thing is that you could make out conversion of your
coins or crypto into fiat which i do believe that this is the main reason of their existence or main usage or purpose which we could tell that it is really that convenient but of course it
do really oppose out total decentralization because it would really be dealing up with some centralized and  regulated thing which its not a surprise.
Its important on the ecosystem but people should mind about the risk most of the time.

[Razmirraz]

Bitcoins can exist without exchanges, but would you support the argument that the existence of exchanges are among the factors facilitating the popularity and accessibility that people have to bitcoins?

The function and use of Bitcoin is not only limited to investment, in some cases Bitcoin is often used as a medium of exchange in buying and selling goods or services online. Bitcoin is not yet accepted in some countries as legal tender, but people living in those countries are very familiar with Bitcoin and often use it for online transactions. The presence of the Exchange as a facility that makes it easier for users to sell and buy Bitcoin. Indirectly, the presence of exchanges has attracted interest for business people to accept payments in the form of Bitcoin. This awareness is due to the Exchange as a place to exchange Bitcoin into Fiat.

[Hiveonm]

It is not a question of importance, but there must be an exchange, because value is generated in the process of transmission, and not only Bitcoin needs to be traded, but other currencies still need to be traded. The way Bitcoin is globalized is to flow around the world , still more people have Bitcoin in their hands, this is called the sea of ​​stars.

[jeraldskie11]

~snip~
I agree with you, but we can't deny that centralized exchanges is better than decentralized in terms of "faster transactions". And this is one of the reasons why Bitcoin price increased so high. There are many people attracts to Bitcoin because of that and its features not difficult to understand. But the only advantage for me is it's transaction fee.

If you use lightning you will have an almost instantaneous transaction and the fees will be almost nothing.

You can't really beat that, because you get the benefits of Bitcoin with the scalability of lightning.

I am using Binance for a while not but so far I didn't hear about lightning network from them. As we know that there are some exchanges who already supported it.

Hoping that lightning network for BTC will be added to all crypto exchanges soon and if these happened we all gonna benefits it.

[nullama]

~snip~
I am using Binance for a while not but so far I didn't hear about lightning network from them. As we know that there are some exchanges who already supported it.

Hoping that lightning network for BTC will be added to all crypto exchanges soon and if these happened we all gonna benefits it.

Bitcoin withdrawals fees are basically free money for the exchanges, so I'm guessing they don't have a huge incentive to implement lightning any time soon.

But yeah, there are some exchanges that do offer lightning, and it's great.

[laurenB7742]

~snip~
My prediction of Bitcoin without centralized exchanges it would be a market with less volatility and less daily volume, the price would be about the same maybe, I am not sure.
With enough time the lack of convenience and comfort would have gotten solved, though. There is already one project of decentralized exchange for Bitcoin which I have heard of (Bisq), but we all got used to businesses like Binance and Coinbase.

If you remove all the "IOU Bitcoin" from centralized exchanges, the price per unit of Bitcoin would just go incredibly higher.

Think about why companies like FTX went bankrupt, they just don't have the money that people put in there. They lend it to other people, they gamble it, etc. Basically they try to create more money out of thin air, but you cannot do that with Bitcoin.

The moment people withdraw Bitcoin to their own wallets, that means they actually have to give them real money. And that's when they go bankrupt. They tried to create more Bitcoins, but of course failed to do so.

So, if there's less Bitcoin available, price would go up.

What about Binance? Regarding the FTX crash, Binance also processed over $6 billion in exchange withdrawals without any issues. Is that " IOU bitcoin"? Bitcoin could still work without an exchange, but I assure you it would not be as popular and valuable as it is today without an exchange.

A newbie who wants to invest in bitcoin and use p2p is unreliable, and without an exchange, they have no way to enter the market. If bitcoin has no trades, it means it has no demand and will make bitcoin unpopular and unable to increase in price. Exchanges are extremely important to the growth of bitcoin and to us.

[Gnanadev]

Exchanges play a significant role in the cryptocurrency market by providing a platform for buying and selling cryptocurrencies. They are a key component in the infrastructure of the crypto ecosystem, and they serve as the primary means for individuals and institutions to access the market and trade cryptocurrencies.

Here are a few ways that exchanges are important in the cryptocurrency market:

Liquidity: Exchanges provide liquidity to the market by allowing individuals and institutions to buy and sell large amounts of cryptocurrencies quickly and easily. Without exchanges, it would be much more difficult for buyers and sellers to find one another, making it harder for the market to function effectively.

Accessibility: Exchanges make it easy for people to buy and sell cryptocurrencies, even if they are not technically savvy. Most exchanges have user-friendly interfaces and provide helpful tutorials and guides to help new users get started.

Price Discovery: Exchanges help to establish the market price of a cryptocurrency by bringing together buyers and sellers. As prices fluctuate, this helps to determine the true value of a cryptocurrency.

Security: Exchanges are responsible for safeguarding the assets of their users. They have to follow strict regulations and guidelines to ensure that customer assets are protected against hacking or theft.

Offer additional services: Many exchanges now offer additional services such as margin trading, lending, staking, and derivatives trading. These services can help traders to maximize their returns and can make the market more attractive to investors.

In summary, exchanges are important for the cryptocurrency market because they provide a platform for buying and selling cryptocurrencies, they increase the liquidity of the market, they make it easy for people to access the market, they help establish market prices and they offer various security and additional features. However, its important to do research and pick a reputable and secure exchange that aligns with your needs.

[Derrickiell]

Bitcoins can exist without exchanges, but would you support the argument that the existence of exchanges are among the factors facilitating the popularity and accessibility that people have to bitcoins?

Exchanges are very important for all cryptocurrencies. There are a large number of cryptocurrencies in the market, and using an exchange allows for quick and safe exchange of currencies, while also making buying and trading easier. But the exchange also has certain risks, don't trust it completely.