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Exchanges are not necessary for crypto. Not sure why you're conflating them. Also, there is no central authority telling exchanges how they have to operate, th

Exchanges are not necessary for crypto. Not sure why you're conflating them. Also, there is no central authority telling exchanges how they have to operate, that they have to collect certain kinds of data or regulate certain kinds of transactions (in theory). If you don't like an exchange's rules you can move to another or create your own fairly easily. By contrast, consider how difficult it would be to start a bank.

jqpabc123 4y ago
Exchanges are not necessary for crypto. Yes they absolutely are. Without them, there would be no crypto *market* --- centralized or otherwise. Everyone turns to the exchanges to value their crypto --- even those doing peer-to-peer (DEX). Also, there is no central authority telling exchanges how they have to operate Exactly! In the absence thereof, they become the defacto "central authority" --- by the sheer weight of their trading volume and the fact that they mint stable coins which can be used to influence any trading.
- naasking 4y ago
  > Everyone turns to the exchanges to value their crypto. Not everyone. And the fact that most turn to exchanges says nothing about crypto's dependence on them. If all exchanges were outlawed tomorrow Bitcoin would still not disappear. Furthermore, the existence of multiple exchanges already refutes your claim that there is a central authority, de facto or otherwise.
  - jqpabc123 4y ago
    Furthermore, the existence of multiple exchanges already refutes your claim Bitfinex and Binance control the market by sheer weight of their trading volume. The others have no choice but to follow their lead. If they don't, these "Big Two" will arbitrage against them and they have an unlimited supply of "stable coins" to work with.
zirgs 4y ago
Yeah, I remember when cryptobros talked about self-contained crypto economy. In that ideal scenario exchanges aren't necessary. But 14 years have passed and nothing has come of it. Off-ramps are still necessary. Exchanges that deal with real money have to abide by rules and regulations of their jurisdiction. Governments can tell them what to do. Crypto exchanges that deal with crypto only can indeed hide from governments, but if they steal your money - there's nothing you can do.
- jqpabc123 4y ago
  Off-ramps are still necessary. Sooner or later, everyone is faced with the necessity of interfacing with reality. You can't escape gravity (physical or financial) just because you don't like it or don't trust it. Gravity doesn't care what you like.

jqpabc123 4y ago

Exchanges are not necessary for crypto. Yes they absolutely are. Without them, there would be no crypto *market* --- centralized or otherwise. Everyone turns to the exchanges to value their crypto --- even those doing peer-to-peer (DEX). Also, there is no central authority telling exchanges how they have to operate Exactly! In the absence thereof, they become the defacto "central authority" --- by the sheer weight of their trading volume and the fact that they mint stable coins which can be used to influence any trading.

naasking 4y ago
> Everyone turns to the exchanges to value their crypto. Not everyone. And the fact that most turn to exchanges says nothing about crypto's dependence on them. If all exchanges were outlawed tomorrow Bitcoin would still not disappear. Furthermore, the existence of multiple exchanges already refutes your claim that there is a central authority, de facto or otherwise.
- jqpabc123 4y ago
  Furthermore, the existence of multiple exchanges already refutes your claim Bitfinex and Binance control the market by sheer weight of their trading volume. The others have no choice but to follow their lead. If they don't, these "Big Two" will arbitrage against them and they have an unlimited supply of "stable coins" to work with.

zirgs 4y ago

Yeah, I remember when cryptobros talked about self-contained crypto economy. In that ideal scenario exchanges aren't necessary. But 14 years have passed and nothing has come of it. Off-ramps are still necessary. Exchanges that deal with real money have to abide by rules and regulations of their jurisdiction. Governments can tell them what to do. Crypto exchanges that deal with crypto only can indeed hide from governments, but if they steal your money - there's nothing you can do.

jqpabc123 4y ago
Off-ramps are still necessary. Sooner or later, everyone is faced with the necessity of interfacing with reality. You can't escape gravity (physical or financial) just because you don't like it or don't trust it. Gravity doesn't care what you like.