Crypto should follow Satoshi's vision.

[South Park]

Last few days we saw making history after Mt.Gox. 55 million people got affected and lots of projects are on the brink of collapse. One of the major ecosystems Solana also having a hard time because of its exposure to FTX and Alameda. Why this is happening?

Satoshi saw a dream of financial freedom by eliminating all middle man. That is why he created bitcoin as peer-to-peer electronic money. But it seems people do not like that freedom which is why centralized exchanges have millions of users and they are playing with people's money. Mt.Gox, FTX, and all other centralized exchanges are the same. They are a threat to crypto. Do not keep your funds in those centralized exchanges. Not your key, not your funds. Dex is the future.

I really hope this is a wake-up call for people and they remember the true intentions behind the creation of bitcoin, but I doubt it will have the results we expect, people want convenience more than anything, and most of the time a centralized solution will be more convenient than a decentralized one, so regardless of how many times the same lesson is shown in front of them people will never learn, while for people like us this is not really a crisis but instead a massive opportunity to get bitcoin for cheap.

[kawetsriyanto]

But it seems people do not like that freedom which is why centralized exchanges have millions of users and they are playing with people's money. Mt.Gox, FTX, and all other centralized exchanges are the same. They are a threat to crypto. Do not keep your funds in those centralized exchanges. Not your key, not your funds. Dex is the future.

People use CEX because they like the features of CEX, it doesn't mean they dislike DEX and don't support freedom. Also, some people prefer using CEX because they think CEX offers an easier way for them to trade crypto coins. So, I don't see a wrong reason why people use CEX, it makes sense or is acceptable actually. But sadly, many people don't realize the possible risks of using CEX, they do something riskier but they think it is safe. For example, keeping their coins on CEX, people assume it is safe because CEX is monitored by the government. They don't know that the government can't fully control CEX, there is always a chance of manipulation of CEX. But now, since the hot issue about FTX collapse, people will realize the risk of keeping their coins on CEX.

[Hydrogen]

Last few days we saw making history after Mt.Gox. 55 million people got affected and lots of projects are on the brink of collapse. One of the major ecosystems Solana also having a hard time because of its exposure to FTX and Alameda. Why this is happening?

Satoshi saw a dream of financial freedom by eliminating all middle man. That is why he created bitcoin as peer-to-peer electronic money. But it seems people do not like that freedom which is why centralized exchanges have millions of users and they are playing with people's money. Mt.Gox, FTX, and all other centralized exchanges are the same. They are a threat to crypto. Do not keep your funds in those centralized exchanges. Not your key, not your funds. Dex is the future.

Many crypto exchanges were hacked for in excess of $1 billion. Many (if not all) were compromised via their bridge, a vulnerability which was never been patched despite it being a known issue for years.

Hackers have stolen $1.4 billion this year using crypto bridges. Here’s why it’s happening

• Crypto bridges, which link blockchain networks together, have become major targets for cybercriminals.
• A total of around $1.4 billion has been lost to breaches on cross-chain bridges this year, according to figures from blockchain analytics firm Chainalysis.
• The biggest incident was the record $615 million haul snatched from Ronin, a bridge supporting the popular nonfungible token game Axie Infinity.

https://www.cnbc.com/2022/08/10/hackers-have-stolen-1point4-billion-this-year-using-crypto-bridges.html

How to explain this?

Which explanation makes the most sense?

[Smack That Ace]

I hope this reliance on crypto exchanges is short lived.

I think the CEX dependency will never go away, most of the users disappointed by SBF have been dedicated to trading even before they know the FTX platform. The prospect of value is what they are looking for regardless they've read WP bitcoin about the great benefits behind it. On the other hand for example, my country only allows bitcoin as investment assets and commodity trading, nothing more.

I also believe that dependence on CEX will never go away, as long as we are here to make a profit, CEX is indispensable. It provides us a lot of services from trading space, P2P services, staking solutions... that DEX can't provide yet but I hope in the future Dex will be able to improve and provide similar solutions as CEX. In my opinion, it is not necessary to give up Cex completely, as long as we have a solution to limit risks, there will be no problem. Never leave funds on the exchange after the end of the transaction, assets in the long-term holding portfolio should be put into cold wallets. In the market nothing is absolutely safe, using DEX we also have to connect the wallet with Dex and grant the permission, they can still attack our assets if there is a conspiracy.

People use CEX because it is a convenient way to convert fiat to crypto. Gas fees are also a reason behind cex dependency if you are a trader, not a long-term investor. Sometimes people do not care to sacrifice their security if they find a little bit of comfort even in an insecure place.

In fact, there are many reasons to choose CEX over DEX. I disagree with many opinions that investors are indistinguishable, and not aware of the risks when they use CEX. We all know but this is a choice and a risky trade-off to find comfort or a job, I don't see a solution for day traders if they don't use CEX, where will they make profits? or a place to convert fiat to crypto conveniently as you say. All these things DEX has never provided fully and is not as easy to use as CEX offers.

[Ucy]

Last few days we saw making history after Mt.Gox. 55 million people got affected and lots of projects are on the brink of collapse. One of the major ecosystems Solana also having a hard time because of its exposure to FTX and Alameda. Why this is happening?

Satoshi saw a dream of financial freedom by eliminating all middle man. That is why he created bitcoin as peer-to-peer electronic money. But it seems people do not like that freedom which is why centralized exchanges have millions of users and they are playing with people's money. Mt.Gox, FTX, and all other centralized exchanges are the same. They are a threat to crypto. Do not keep your funds in those centralized exchanges. Not your key, not your funds. Dex is the future.

The centralized exchanges and cryptocurrencies are actually part of the problems, but their collapse should not be a problem to the dececentralized ones, it's actually part of the solutions despite the loses to their investors whose funds started becoming worthless the moment they are kept on such exchanges.

Those who build on weak foundation will be affected alone when the house collapses. That should not be a problem to those on solid foundation. Price only went down because of something else rather than exchange issues. And It will be bouncing back very strongly soon

[kryptqnick]

If Satoshi wanted to have a heavy impact on Bitcoin future, I don't think this person would have remained not only anonymous but also inactive for many years in the crypto area. That means that the community and the market can decide how Bitcoin moves forward, what it's used for and which services remain in demand. There is also a more general philosophical question of whether the creation truly ever belongs to its creator and whether we should aim at following the creator's vision or should determine the value and vision ourselves.
Reminding everyone of the risks of centralized services and the benefits of non-custodial wallets and transactions from one BTC address to another is an important thing to do. But we should also realize that many people enjoy centralized services and rely on them. So stricter regulations and accountability of such services is desirable, as well as people understanding the risks when they opt for centralized services. But I think that crypto exchanges are here to stay, even with occasional bankruptcies and/or scams.

[DVlog]

Last few days we saw making history after Mt.Gox. 55 million people got affected and lots of projects are on the brink of collapse. One of the major ecosystems Solana also having a hard time because of its exposure to FTX and Alameda. Why this is happening?

Satoshi saw a dream of financial freedom by eliminating all middle man. That is why he created bitcoin as peer-to-peer electronic money. But it seems people do not like that freedom which is why centralized exchanges have millions of users and they are playing with people's money. Mt.Gox, FTX, and all other centralized exchanges are the same. They are a threat to crypto. Do not keep your funds in those centralized exchanges. Not your key, not your funds. Dex is the future.

The centralized exchanges and cryptocurrencies are actually part of the problems, but their collapse should not be a problem to the dececentralized ones, it's actually part of the solutions despite the loses to their investors whose funds started becoming worthless the moment they are kept on such exchanges.

Those who build on weak foundation will be affected alone when the house collapses. That should not be a problem to those on solid foundation. Price only went down because of something else rather than exchange issues. And It will be bouncing back very strongly soon

There is no solid foundation that exists. CEX king binance can also evaporate. Many investors thought it is impossible for FTX to fail. But it takes only 1 night to take the whole foundation down. So it is best not to trust anybody but yourself. Be your own bank and keep things in your non-custodial wallet. No matter if it's BTC or other cryptocurrencies. A Trustless system is the future of our society when people become untrustworthy day by day.

[wiss19]

Solana is already having a bad time before the FTX issue came in but that was fixed already and if they are still collapsing then the cause of it will be the FTX. If only btc is not highly volatile, many people won't see it as money making machine and less or no cex at all that will be invented because people are going to be contented already on what dex has to offer.

Those who use cex are the people who don't really care about privacy or to the vision of satoshi but they only care about making money and they think cex are safer and more convenient to use than the dex. I think some cex do also have a contribution in the crypto world so don't generalize and say that they are a threat to crypto.

[Gyfts]

Centralized exchanges may have their place in a crypto economy but what happened with FTX is not even an indictment on exchanges, it's just the muddiness that exists with shady financial platforms that prefer to dabble in the crypto currency market because of its decentralization. I'm not an advocate for exchanges, of course. We should be correct in address the underlying issue which was bad faith actors who belong in a jail cell for ripping off clients.

The FTX fraud existed in the housing bubble that caused the global economic meltdown in 2008, this is not a unique type of enterprise. Liquidity issues due to irresponsible fund management has always existed and most banks engage in the same reckless behavior unbeknownst to consumers.

Seems the focus is all on FTX the exchange and not Bankman-Fried the conman because it's easier to blame Bitcoin for the corruption. I'd add, Bankman-Friedman was a big political donor...so perhaps there's a reason why not much focus is on him by the authorities.

[minime0105]

Cryptocurrency is a currency that you can't control or regulates in many forms, i believe that cryptocurrency while it's been regulated it's because Bitcoin as we have its way of operation and it's in lines with Satoshi wish, because right from the day one , Bitcoin have not experience increment, the technology is being built from my personal understanding as what the needs will determine the rate of it's increment, i believe that bitcoin is something you can understand very well before you make a reference, so i backdated by claims with the values of Bitcoin in past five to six years market price.

[DVlog]

Solana is already having a bad time before the FTX issue came in but that was fixed already and if they are still collapsing then the cause of it will be the FTX. If only btc is not highly volatile, many people won't see it as money making machine and less or no cex at all that will be invented because people are going to be contented already on what dex has to offer.

Those who use cex are the people who don't really care about privacy or to the vision of satoshi but they only care about making money and they think cex are safer and more convenient to use than the dex. I think some cex do also have a contribution in the crypto world so don't generalize and say that they are a threat to crypto.

SBF was one of the biggest investors in Solana. It is obvious that with a heavily centralized blockchain Solana would face this one day. What happens this month is nothing new in the crypto industry. Veteran investors saw this type of negative event before(Mr.Gox,Bitfiniex,Kucoin hack). It's a very unique way for the BTC market to shake out paper hands and ponzi scams from the market.

People use CEX because most of them don't know a better option. Most people buy BTC by using their credit card or by direct purchase through a bank account. Centralized exchange offers better service for those with additional rewards. The problem is investors think CEX is also a safe place to hold their BTC which is not true. It's been late but it's good they understand this now.

[justdimin]

In fact, there are many reasons to choose CEX over DEX. I disagree with many opinions that investors are indistinguishable, and not aware of the risks when they use CEX. We all know but this is a choice and a risky trade-off to find comfort or a job, I don't see a solution for day traders if they don't use CEX, where will they make profits? or a place to convert fiat to crypto conveniently as you say. All these things DEX has never provided fully and is not as easy to use as CEX offers.

I would say fiat to crypto or vice versa is a good reason to use CEX, that part is true but that’s not trading, that’s just getting in and out of crypto and trading is something else. Using dex would give you a lot of freedom, and it’s not risky at all, whereas using CEX has all this type of problems such as what happed to FTX and a million others before that.

This is why I highly suggest everyone to take a look at the situation at hand, and do not be worried if DEX scares you at first, because it does that to everyone, but you will get a lot more comfortable with it over time. I know you feel at ease when you use CEX but that’s because you have been doing that for a long time, when you move to DEX, eventually you will feel the same.

[Flexystar]

You know there is one saying, “the greatest lesson is learnt by one time life experience”. This is what happening right now in the market. Everyone who used to be confident about their assets in the hands of middle entity like exchangers, financial firms and escrows would understand how wrong they were in the first place.

This is also disproving the concept of middle entity getting involved into bitcoin transactions.

I mean what was dreamt as decentralised and peer to peer system actually got turned into centralised system due to increased use of Exchangers.

Isn’t that is common sense that everyone lost in the greed ?

[naira]

In the end we will continue to be shifted to centralization when crypto adoption increases and the government monitors owned assets. Moreover, bitcoin is now increasingly popular and the central authority will always have access to your wallet. Playing around with the central exchange increasing KYC verification then it's done.

Inevitably, the largest centralized exchanges want to remain in operation and accept the authority's policy of obtaining licenses and not being perceived as renegade exchanges. But here there is tolerance from CEX without KYC if your asset volume is below the limit. I think that's what makes us feel limited to still protect privacy.

[avikz]

Last few days we saw making history after Mt.Gox. 55 million people got affected and lots of projects are on the brink of collapse. One of the major ecosystems Solana also having a hard time because of its exposure to FTX and Alameda. Why this is happening?

Satoshi saw a dream of financial freedom by eliminating all middle man. That is why he created bitcoin as peer-to-peer electronic money. But it seems people do not like that freedom which is why centralized exchanges have millions of users and they are playing with people's money. Mt.Gox, FTX, and all other centralized exchanges are the same. They are a threat to crypto. Do not keep your funds in those centralized exchanges. Not your key, not your funds. Dex is the future.

It's easier said than done to be honest! The entire world economy should be changed if they really want to follow Satoshi's vision. I don't see it happening ever in our lifetime unless we survive a nuke war where majority of the governments will be destroyed and a new world order emerges. In the current structure of economy, it is absolutely not possible to have bitcoin as a peer to peer currency everywhere in the world. There are obviously some countries where you can do that but not everywhere.

Middlemen are integral part of the ecosystem where they create an important link between the crypto and mainstream economy. It's not easy to remove them because of its scale. As of now, it's just wise not to keep any funds with them. Fill your wallet, trade and come out! That should be the ideal workflow when dealing with exchanges to be honest!

[serjent05]

Satoshi saw a dream of financial freedom by eliminating all middle man. That is why he created bitcoin as peer-to-peer electronic money. But it seems people do not like that freedom which is why centralized exchanges have millions of users and they are playing with people's money. Mt.Gox, FTX, and all other centralized exchanges are the same. They are a threat to crypto. Do not keep your funds in those centralized exchanges. Not your key, not your funds. Dex is the future.

Is it really about the financial freedom that Satoshi Nakamoto created Bitcoin?  As far as I understand, it isn't about financial freedom but freedom of transactions where the third party is eliminated to control where we can send and transfer our funds.  That is one of the reasons why he created Bitcoin, in order to do borderless transfers without the aid of any third-party finance system.   Financial freedom is way different than the freedom to perform borderless transactions.  It is also created to remove the trust system where we have to trust the financial institution every time we make a money transfer or make a trade.

[South Park]

Last few days we saw making history after Mt.Gox. 55 million people got affected and lots of projects are on the brink of collapse. One of the major ecosystems Solana also having a hard time because of its exposure to FTX and Alameda. Why this is happening?

Satoshi saw a dream of financial freedom by eliminating all middle man. That is why he created bitcoin as peer-to-peer electronic money. But it seems people do not like that freedom which is why centralized exchanges have millions of users and they are playing with people's money. Mt.Gox, FTX, and all other centralized exchanges are the same. They are a threat to crypto. Do not keep your funds in those centralized exchanges. Not your key, not your funds. Dex is the future.

It's easier said than done to be honest! The entire world economy should be changed if they really want to follow Satoshi's vision. I don't see it happening ever in our lifetime unless we survive a nuke war where majority of the governments will be destroyed and a new world order emerges. In the current structure of economy, it is absolutely not possible to have bitcoin as a peer to peer currency everywhere in the world. There are obviously some countries where you can do that but not everywhere.

Middlemen are integral part of the ecosystem where they create an important link between the crypto and mainstream economy. It's not easy to remove them because of its scale. As of now, it's just wise not to keep any funds with them. Fill your wallet, trade and come out! That should be the ideal workflow when dealing with exchanges to be honest!

One mistake those which want to change the established order make is that they think the system in place can be changed easily, when in fact there is a lot of inertia built into the system not only from those that benefit economically from it but also from the people that do not want things to change, and I will put myself as an example, I do not use apple products and the main reason is that I am not willing to spend my time learning how to use them, so people do not want to learn to use bitcoin as they know how to use fiat already, and this is more than enough to keep the adoption rate at low levels.