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.
In terms of fighting centralization, Bitcoin is neither a winner nor a competitor but rather a basic concept as the development of bitcoin, because all transactions made are regulated through the system then confirmed, but not limited and controlled by anyone.
The exchange has two functions to use, buy and sell the assets that we own, meaning that limiting the storage of bitcoins in personal wallets will not put the exchange out of business.
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.
From a security point of view, storing Bitcoins on certain exchanges is extremely insecure, because when an exchange encounters a problem, it will actually result in the loss of the bitcoins that we have, as is the closest case we have seen at FTX. Not to mention that if people were to move Bitcoin off exchanges Bitcoin liquidity would be very problematic, every trade on the exchange would require two on-chain transactions. An exchange will definitely be needed, but not a secure safekeeping of assets.
