The Failure of Exchnages can never be that of Bitcoin.

[Hispo]

I had myself seen people (mostly uninformed people) on Twitter in the days of the collapse of FTX, they were talking about how Bitcoin failed and a lot of non-sense.
Saying that the collapse of an exchange is a Bitcoin failure; would be equivalent to say the bankruptcy of a bank is the failure of FIAT, and we all know that nobody would think that way if bank went out of business tomorrow.

It is just plain ignorance about Bitcoin, in my opinion.

I assume most of the users on this forum are informed enough, I don't fear that kind of cheap FUD to affect people who is already part of our community.

[Fundamentals Of]

This seems to be a confusion not just to many ordinary people but even among the leaders in congress who investigated the case of FTX. Sometimes it is easy to generalize crypto companies, crypto applications, even other cryptocurrencies as Bitcoin. They are not.

If Bitcoin is being doubted because FTX failed, then they haven't understood a thing about Bitcoin. This must also be the generalization of some members of congress who failed to understand that centralized exchanges like FTX isn't Bitcoin, doesn't represent Bitcoin. In fact, they are the opposite of Bitcoin.

[fuguebtc]

I don't know where you read that news, but I've never heard of it, bitcoin and exchanges like currencies and banks. A failed bank doesn't mean the currency collapses and neither does bitcoin. I remember we also had a topic about the correlation between bitcoin and exchanges and honestly, bitcoin can work fine even without an exchange, so saying that the collapse of exchanges will drag bitcoin to collapse is the dumbest statement I've ever heard.

I see you didn't take your time reading throughout the whole text there, I'll advice you take your time already to read it.

The faluire of centralized exchange has never been and will never be the downfall of Bitcoin.
It was good to hear and read from users during the FTX collapse saying they handled the entire situations gently despite majority of them  getting bankrupt by Fxt. I would be so disrespectful of me to call you a poor reader so I won't do that.

I mean, where do you read those news? Who spread those false rumors? I didn't say you said those things.

You're correct that bitcoin can function without exchanges, but traders and investors cannot really do their thing without exchanges. Bitcoin is only dragged on the issue because it's what's being traded on the exchanges, and it's mainly the target of hacks. Bitcoin doesn't share any of these faults and insecurities of exchanges, but it may seem like it because the price of bitcoin afterwards is what's getting affected unfortunately.

Yes, the people who need the exchange are us, not bitcoin, exchanges are extremely important to the market and investors like us. Without them, we would have a lot of difficulties with our financial activities. Like fiat money and banks, although we don't like them because they are centralized or lose value over time. But in the end, they are still our ultimate goal, without fiat our lives would come to a standstill.

[davis196]

Re: The Failure of Exchanges can never be that of Bitcoin.

This statement is valid and has been repeated multiple times on the forum. Repeating it one more time doesn't make it more valid.
It's true that the crypto exchanges exist mostly because of the altcoins, not because of Bitcoin. The original purpose of the crypto exchanges was to be some sort of "financial casinos", where the traders by and sell various "shiny objects", like altcoins, shitcoins, tokens, etc.
The crypto market was crazy speculative and the traders were expecting insane profits out of pump&dump schemes or they were waiting for some altcoin to become "the new Bitcoin".
I'm still a Bitcoin maximalist and I still think that the crypto world doesn't need altcoins and crypto exchanges.
 

[QueenVera]

The bottom line of this all is that the failure of Centralized Exchnages can never be that of Bitcoin which after every bear market has been tested, the cycle continues, gather sats around and be patient for the bull.

The failure of centralized exchange only prove that centralized system aren't they way to go if the industry want to go far. Instead of we fighting for adoption through us giving up what makes the industry unique (which is it been decentralized) then to hell with their adoption.
We can achieve adoption through peer to peer, it just might take longer to achieve but we can wait. The world isn't ending tomorrow and we have lots of time to build and strength the industry.
Who knows maybe the government are the ones sponsoring this centralized exchange to strengthen their fight against Bitcoin as all this centralized exchange do is to sell our data to the government so they can monitor our every move.
Bitcoin can do without the centralized exchange and the fastest they all fail the sooner the community will realized they didn't really need them. Now this exchangs are making people think the industry can't do without them meanwhile that's false.

[tbct_mt2]

The failure of centralized exchange only prove that centralized system aren't they way to go if the industry want to go far. Instead of we fighting for adoption through us giving up what makes the industry unique (which is it been decentralized) then to hell with their adoption.

Exchanges are so scam especially centralized exchanges but they have contributions to cryptocurrency ecosystem. There are scammers with decentralized exchanges too. Project teams can rug pulls on decentralized exchanges and people like projects that are listed on big centralized exchanges. They have more belief in CEX listed projects than only DEX listed projects.

We can achieve adoption through peer to peer, it just might take longer to achieve but we can wait. The world isn't ending tomorrow and we have lots of time to build and strength the industry.

It is future but CEX and DEX will grow together and people will use both CEX and DEX.

Who knows maybe the government are the ones sponsoring this centralized exchange to strengthen their fight against Bitcoin as all this centralized exchange do is to sell our data to the government so they can monitor our every move.

Governments receive tax from centralized exchanges and maybe lobby things from CEX teams too.

[Crypt0Gore]

Let's not forget that few coins are not listed on centralized exchanges till today and they do so well in this crypto market, look at HEX for example, as successful as this coin is it never get listed on those cex big exchanges .
Bitcoin will do so fine without any centralised exchanges and in fact it feels more at home on Decentralised exchanges, Bitcoin was never created to be under any centralized power as we know it.

[Yatsan]

People are just fond of correlating things which are not even in line with one another. Unfortunately, the reaction affects the industry which contributes to the market downfall. Some investors are still afraid to engage at the present with crypto investment in fear that exchangers will cause additional risks with their assets without realizig that from the past years, this is only one of the rare instance wherein an exchange became negligent with their fund. People are disregarding that there are responsible and useful exchangers to move their assets with whether centralized or decentralized ones.

This seems to be a confusion not just to many ordinary people but even among the leaders in congress who investigated the case of FTX. Sometimes it is easy to generalize crypto companies, crypto applications, even other cryptocurrencies as Bitcoin. They are not.

If Bitcoin is being doubted because FTX failed, then they haven't understood a thing about Bitcoin. This must also be the generalization of some members of congress who failed to understand that centralized exchanges like FTX isn't Bitcoin, doesn't represent Bitcoin. In fact, they are the opposite of Bitcoin.

I doubt with the 'opposite' it is more of a product being used in a platform. The platform is exchanger while the product is Bitcoin. But that's indeed true, generalization has never done good to any industry; it just makes the situation worse.

[molsewid]

I have read, heard close discussions, rumours and rumoured misconceptions and misunderstanding about Bitcoin as it relates with Exchanges.

As we all are aware, the ussge if centralized exchange defeats the whole idea of Bitcoin and perhaps the reason why it was created by Satoshi Nakamoto which is decentralization and self custody. Regardless of how people speak condescendingly to friends and families about backing off from investing in Bitcoin and other cryptocurrencies during the recent FTX collapse.

A bit furious about it summon myself to make this up, that the failure of an exchange can and will never be the failure of Bitcoin.
Satoshi Nakamoto who I believed mined the highest number of Bitcoin has not 1% of those Bitcoin holding's on any of those popular exchanges. That should be enough for every or any sensible human out there to mimick and imitate. I consider it pure cowardice to think that if an exchange fails that Bitcoin will fail, not even the level of crypto scams will crash it nor lead it to stunt growth and adoption. Jim Cramer has been such a stupid influencer pushing people to exit investment in crypto and also to panic sell which is wrong as he said that months behind. A dialogue with people who have seen worst in the bear market and exchange collapse will have you disciplined and leaving exchanges for good, buying the dip in the process as it also an opportunity to accumulate more satoshis.
Below are something's exchange do;

In Reality, Bitcoin is a digital gold and can actually do without exchnages.. they haven't represented Bitcoin from the very beginning, an example is that the first pizza bought with Bitcoin, had no exchange playing any role in that process.

If there were no cryptocurrencies especially Bitcoin, there wouldn't have been an exchange... Centralized Exchnages rose up after the creation of Bitcoin , are they any different from local banks? Making profits is the sole aim.

Since the rise of Centralized Exchnages they have more harm and ruins... From MT. GOX, Quadriss and to thr latest FTX collapse, all they do is put investors in doubt about the continuation of investments in crypto projects, both life savings and retirement plans have been shattered.

The bottom line of this all is that the failure of Centralized Exchnages can never be that of Bitcoin which after every bear market has been tested, the cycle continues, gather sats around and be patient for the bull.

I remember last December, I heard someone talks about the fall of FTX, he associate FTX to the entire bitcoin and crypto market. I'm just upset that people only knew FTX because it has been hype by many influential people if I'm not mistaken a local game content creator here in our country promoted that website non stop in his channel and that was the time I first heard FTX but I did not try to use that since I don't like exchanges that is being promoted by someone just like a popular coin gets hyped and then gone after a bit.

[Wiwo]

Criticizing Bitcoin/crypto because of a centralized exchange failure has always been an idiotic criticism in the first place; always voiced out by ignorant people on social media. Those empty cans have always been the most vocal.

Empty vessels make the loudest noise, Bitcoin have no correlation with centralized exchange so the situation in any exchange shouldn't be a remark on bitcoin, infact just as the negative impact of those centralized exchanges on bitcoin ideology is more higher than it impact on investors.

Let's not forget that few coins are not listed on centralized exchanges till today and they do so well in this crypto market, look at HEX for example, as successful as this coin is it never get listed on those cex big exchanges .
Bitcoin will do so fine without any centralised exchanges and in fact, it feels more at home on Decentralised exchanges, Bitcoin was never created to be under any centralized power as we know it.

Are you kidding me, why should you mention HEX coin in this kind of conversation HEX is not a project that should be mentioned for any good discussion because HEX coin is nothing but just a pump-and-dump coin that has no future and we shouldn't relate such coin to Bitcoin for whatever reason.

[ShowOff]

There's nothing wrong with me if we will use a centralized exchange as long as never store your coin on exchange for a long time.
They also contributed an awareness of Bitcoin among the people and criticizing failure doesn't make sense to me but instead, learn from this mistake and never leave your crypto to them.

You are right, centralized exchanges are supposed to be used as intermediaries when a trader wants to convert his assets into bitcoin or fiat or some other crypto. Centralized exchange is certainly not a secure storage wallet, but people will still use it as a storage because they trust the reputation of the exchange. People have to learn from past mistakes, so regardless of the risks they also have to take responsibility for their decisions.

Criticizing exchange failures seems fair because people expect their assets to be safe no matter what, but nothing is risk free even if the exchange is well known and reputable. So if we have considered the risks, then we also have to know what the worst consequences will be.

[Iroh]

I think exchanges play a big role in the general use of bitcoin as people could easily buy and trade in their coins for fiat at anytime. With the constant advertisements on the social media space, it has spread crypto and bitcoin far and wide, somewhat creating some sort of awareness.
While it has its uses, we shouldn’t forget also that they’re in it as a business. They claim to safely hold your coins for you so you don’t have to do so yourself. And bitcoin is there encouraging users on the need for self custody of your funds.

Bitcoin has risen above all the misconceptions and falsehoods. The demise of an exchange cannot be the demise of bitcoin.

[AmoreJaz]

I think exchanges play a big role in the general use of bitcoin as people could easily buy and trade in their coins for fiat at anytime. With the constant advertisements on the social media space, it has spread crypto and bitcoin far and wide, somewhat creating some sort of awareness.
While it has its uses, we shouldn’t forget also that they’re in it as a business. They claim to safely hold your coins for you so you don’t have to do so yourself. And bitcoin is there encouraging users on the need for self custody of your funds.

Bitcoin has risen above all the misconceptions and falsehoods. The demise of an exchange cannot be the demise of bitcoin.

 those with ill intent of creating business out of bitcoin can easily go down hard but btc itself won't go down. those people who have different approach towards btc for sure don't find time to educate themselves about btc itself. because simple reading will give them enough knowledge to understand the true nature of btc.
ignorance is the main reason why many people are still connecting the failure of certain crypto businesses to btc. if they wont educate themselves with facts, they won't know the truth.

[Fundamentals Of]

This seems to be a confusion not just to many ordinary people but even among the leaders in congress who investigated the case of FTX. Sometimes it is easy to generalize crypto companies, crypto applications, even other cryptocurrencies as Bitcoin. They are not.

If Bitcoin is being doubted because FTX failed, then they haven't understood a thing about Bitcoin. This must also be the generalization of some members of congress who failed to understand that centralized exchanges like FTX isn't Bitcoin, doesn't represent Bitcoin. In fact, they are the opposite of Bitcoin.

I doubt with the 'opposite' it is more of a product being used in a platform. The platform is exchanger while the product is Bitcoin. But that's indeed true, generalization has never done good to any industry; it just makes the situation worse.

Bitcoin is about decentralization. FTX and the rest of the most popular exchanges right now are centralized. That's opposite. Bitcoin is about full control and ownership. FTX is about having somebody else hold the funds in your behalf. That's another opposite. Bitcoin respects privacy. FTX asks for personal information and even stores them in a way that could possibly be hacked or leaked. Bitcoin is basically peer to peer. FTX is a third party. So FTX is the complete opposite of Bitcoin. People shouldn't confuse FTX with Bitcoin because they are far from the same.

[cloirecrom]

it never is. it affect btc price . but not btc fault
in the firstplace bitcoin is great  cause it's decentralized, removing third party, and  need of trust.
and people think centralizing it and putting it on third party based on trust is good idea lol

[Kelvinid]

Let's not forget that few coins are not listed on centralized exchanges till today and they do so well in this crypto market, look at HEX for example, as successful as this coin is it never get listed on those cex big exchanges .
Bitcoin will do so fine without any centralised exchanges and in fact it feels more at home on Decentralised exchanges, Bitcoin was never created to be under any centralized power as we know it.

Not even that because it is very simple that fail of exchanges whether it was centralized or decentralized certainly won't affect the future of Bitcoin. But it was very unfortunate that many people are already make bad opinions and negative views about Bitcoin and spread them on social media. However, this will never affect the trust of those who believe in the potentiality of the project, and they remain calm and positive despite those assumptions.

I heard some people then say it was a failed project, yet they never use it in the first place.

[Nrcewker]

Exchanges have truly impacted the reputation of Bitcoin. I mean these exchanges perform such cheap scams and people say Bitcoins are illegal and scams. FTX scam was really astonishing for many of us, but still for this, many people showed fear and sold their Bitcoins. And this lead to the price fall of the coin. But yes as said, the failure of Exchanges can never affect Bitcoins, as when the price went down, it created opportunity for the people to buy more coins in the cheap price. This will eventually lead to increase in Bitcoin’s price. Let’s hope for the best and see what happens next.

[KingsDen]

As banks are to fiat money so also exchanges are to bitcoin.
There is no doubt that exchanges are important parts of the bitcoin and cryptocurrency community.

However, we do see and hear the news where banks are rubbed or they bankrupt. It therefore will not translate that the fiat money is scam or has failed.
That is the same situation with exchanges and bitcoin. If one exchange fails, it doesn't mean bitcoin has failed.
Although, since I know bitcoin it has never been a friend of the media and speculators.

[Woodie]

The connection between Bitcoin/cryptos performance and an exchanges role will always be debatable but we do agree that these exchanges (Dex/Cex) are the platforms that act as the gateway to the real world, anybody trying to get their hands on some crypto for the first time are more likely to come here as these are the most common channels...Which is why if these are hacked or customers aren't served in their best interest word goes round about this... which creates fear and people sell their crypto assets and wait till the dust settles before jumping back into the markets.

[Luzin]

As banks are to fiat money so also exchanges are to bitcoin.
There is no doubt that exchanges are important parts of the bitcoin and cryptocurrency community.

However, we do see and hear the news where banks are rubbed or they bankrupt. It therefore will not translate that the fiat money is scam or has failed.
That is the same situation with exchanges and bitcoin. If one exchange fails, it doesn't mean bitcoin has failed.
Although, since I know bitcoin it has never been a friend of the media and speculators.

It is hard to imagine if the exchange does not exist. Perhaps Bitcoin will simply become a transaction tool. Perhaps Bitcoin will not have the value it is today and they will not develop into a commodity.
Even I know bitcoin because of trading, and profit. Regarding the failure of the Exchange that has already occurred, it is because they have a weakness in storing assets in the form of valuable crypto. So far Bitcoin is created and has value and he is the main target. So they don't look at the downsides of Bitcoin but its storage or exchange. CMIIW