FTX failing is not crypto failing. FTX failing just proves the fundament of crypto to be right - don't use centralized finance (yes, FTX is centralized finance).
All finance is centralized. De-centralized finance really doesn't exist --- crypto is just the latest example of this.
Before any crypto transaction who do the buyer and seller both turn to for a "fair market value" ? A *centralized* exchange.
The crypto market is controlled by companies like FTX. This still holds true even if you don't deal directly with these companies. Money equates to influence and control and crypto is no exception.
> Before any crypto transaction who do the buyer and seller both turn to for a "fair market value" ? A centralized exchange.
That's the simplest way today - but definitely not a requirement, and doesn't make it centralized in any way. The centralized exchanges don't set the price (if anything, they suggest it) and they can't control transactions nor wallets. Who doesn't know the private key can't do anything with the funds on a wallet.
> The crypto market is controlled by companies like FTX. This still holds true even if you deal directly with these companies.
The "crypto market" - maybe. But they don't control the cryptocurrencies themselves in any way. This is like saying that because NASDAQ controls the $MSFT market they control Microsoft - of course they don't.
But they don't control the cryptocurrencies themselves in any way.
Binance and Bitfinex have control over the one thing that matters most about Bitcoin --- the price. They exercise this control in the same way a central bank does --- they have access to an unlimited supply of "stablecoins" they can mint at will and use to buy/sell bitcoin as they see fit.
The price isn't the thing that matters the most about Bitcoin...
What matters the most is that nobody can take my coins from my wallet if I don't want them to and that I can send the coins to anybody I want, however much I want and whenever I want.
That’s it’s utility as a currency. But the only reason you care about it being a currency in the first place is because of its purchasing power — value. Once it has value, then those properties are meaningful.
Can you turn US dollars or Euros into crypto in decentralized exchanges? As far as I remember you could only trade crypto; one token for another.
That's useful if you have crypto, but how do you get into the field in the first place? As long as people aren't being paid in crypto and can't buy and sell things in crypto there is no way to get into the system without going through someone willing to exchange crypto for fiat. And this someone tends to be a centralized exchange.
No. Did you miss the fact that centralized exchanges set the "market" price of crypto --- even for trades on decentralized exchanges?
Yes, you can set your own asking price for crypto --- but the reality is it's unlikely you can sell for significantly more than the "market" price set by centralized exchanges. And good luck finding someone who will sell to you for significantly less.
Most people won't surrender value just for the sake of "decentralization".
It's perfectly possible to use crypto without centralized exchanges and many people do so. As "centralized crypto" continues to fail, people will use it in a decentralized way more and more. I don't see how the conclusion is "don't use crypto". People seeked simplicity, found out there is no free lunch - that doesn't mean they will throw the baby out with the bathwater.
All finance is centralized. De-centralized finance really doesn't exist --- crypto is just the latest example of this.
Before any crypto transaction who do the buyer and seller both turn to for a "fair market value" ? A *centralized* exchange.
The crypto market is controlled by companies like FTX. This still holds true even if you don't deal directly with these companies. Money equates to influence and control and crypto is no exception.