The thesis against Crypto Exchanges
Crypto is digital money, and it supposes to serve you automatically. Why you need a third party to guard your money?
The question is, what makes crypto exchange services appealing to you?
The ChatGPT answered:
A crypto exchange is necessary for individuals and institutions to buy and sell cryptocurrencies. Without a crypto exchange, it would be difficult for people to find a buyer or seller for their digital assets and the process would be less efficient. Exchanges also provide a platform for trading and speculation, and often offer additional services such as wallets for storing cryptocurrencies. Additionally, exchanges can also offer trading pairs for fiat currencies, allowing individuals to buy cryptocurrencies using traditional currencies. Overall, crypto exchanges play a crucial role in the ecosystem of digital assets by providing liquidity and facilitating the buying and selling of cryptocurrencies.
Let's explore the reasoning.
Crypto exchange helps you to buy and sell cryptocurrencies. The service they provide is a place to exchange cryptocurrencies with fiat currencies so that you can purchase from them.
Unlike central banks who are an fiat currency issuer, crypto exchange is not an issuer but a facilitator to offer services to customers.
The problem of none issuer of the currency is that you have a counterparty risk that you rely on their judgment of price and services they offer, or you have not other choice but to choose from them.
This is bad because cryptocurrency is about choice and freedom. Crypto exchange offers you a choice and freedom they choose for you.
There aren't many choices for you to purchase cryptocurrencies from besides those exchanges which makes it even worse for the entire industry.
Those crypto exchanges are monopolies who can decide on what services they want to offer.
Crypto is already risky to own, but those crypto exchanges make your assets more risky than you thought.
So why crypto exchange then?!
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