For example, if large number of people holding Bitcoin today, decides to keep their coins on exchanges does this means that there is more decentralization? Eventually we can be having many nodes but if most of our ordinary users still depends on centralized services to interact with Bitcoin, what part of decentralization are they actually experiencing ?
We can't question anyone for choosing to keep their coins on centralized exchanges, it's their coin, it's their money and if anything happens to it in the exchange they will bear the brunt and not blame anyone since they don’t want to keep it where they have the keys to their wallets. Moving coins from self custody wallet to a centralized exchange is already decentralised because you are interacting directly with the exchange wallet without involving any third party. Those who chose to interact more with centralized exchanges already knows that their transactions are not decentralised. You should understand that it is almost impossible to do without interacting with centralized exchanges because for you to buy bitcoin using your local currency, you will need to pass through CEXs.
