Weeding Out The Real DEX's

avatar

Hey Jesscentralised

Bitcoin continues to rally even after a slight pullback this week when announcements broke that Mr munchkin, I mean Mnuchin was looking at drafting a new law that would force crypto users to adhere to KYC when moving their coins off exchanges to self-hosted wallets.

This news naturally freaked out some people who still believe int eh power of government and sold off their coins sharpishly for strong hands like myself to pick u, thanks for the Black Friday special kids.

The CEO of Coinbase, Brian Armstrong, came out against the news on Twitter and alleged proposal from the U.S. Department of Treasury, “could be an existential threat to Bitcoin.” Granted his running a centralised exchange and rules like this would seriously dent his customer base, but he has a point.

You can knock us, but never knock us out

As someone who cares about where this space is going and not to want to cut it off at the knees, I always moan and groan when I see new laws or taxes being shifted onto cryptocurrency. I don't even see why they need to get involved when it's the trading of private digital assets between two people, but okay that's just me.

I think regulation in this space is only going to slow things down in the short term. We'll still get where we need to go; regardless of governments.

Some will try to make peace with it while others are going to try and fight it every step of the way and its a great test to see how robust crypto really is and if it can withstand governments, then nothing can stand in its way of becoming a worldwide method of transacting.

weedingdexs.png

Regulation pushes more decentralisation

The way I see it is regulation is only applicable to exchanges where there is a centralised business behind it, where they custody tokens and manage the arbitrage between currencies and skim a profit. These exchanges will have to adhere to regulations such as these and effectively lose customers.

Whereas decentralised exchanges and peer to peer networks will not have this problem. This means customers that do not want to participate in KYC can use decentralised tools like Bisq, Kyber and Uniswap, and people who are happy to give their information away would use services like Coinbase and Binance.

How free is your free market

Having more options allows us to cater to different peoples needs and risk tolerance and to me, that's an overall good thing. Personally, I would opt for the decentralised options where I pay a little bit extra to maintain privacy, but that's okay with me, it seems worth the fees.

I think regulation will show us which services are indeed the most decentralised and which aren't and it will become more apparent over time.

You can then use a combination of the tools or migrate from centralised to decentralised and vice versa as meander your way through the crypto market.

Have your say

What do you good people of HIVE think?

So have at it my Jessies! If you don't have something to comment, comment "I am a Jessie."

Let's connect

If you liked this post, sprinkle it with an upvote or esteem and if you don't already, consider following me @chekohler and subscribe to my fanbase

Safely Store Your CryptoDeposit $100 & Earn $10Earn Interest On Crypto
ledger.jpgBlockfi.jpgcryptocom.jpg

celciusnetwork.jpg

Posted Using LeoFinance Beta



0
0
0.000
11 comments
avatar

More Decentralization is good but user education on crypto field look like a concern to me. If someone can buy any xyz coin or buy stable coin and wait for its mooning or just buy SBD at 4x then Centralization might give little protection.

0
0
0.000
avatar

I hate to be kind of a dick, but I think being burned is part of the journey, I was burned and it forced me to learn and only through that did I take personal responsibility and learn how to use various platforms and judge for myself.

Posted Using LeoFinance Beta

0
0
0.000
avatar

I do not like strict centralisation.
But, I think there should be a little bit principal for taxations and controlling money laundering.

Posted Using LeoFinance Beta

0
0
0.000
avatar

Governments can do whatever they want with their money place rules and taxation on it, that I understand but when it comes to private money like Bitcoin, I feel they don't have a say and they need to come to terms with that

Posted Using LeoFinance Beta

0
0
0.000
avatar

no matter how many strict regulations they try to pass or enforce the outcome will be the same. Decentralization will rule!

Posted Using LeoFinance Beta

0
0
0.000
avatar

Exactly it's like whack a mole, you hit one down 10 pop up in its place, you can't regulate decentralisation but they'll find that out eventually in the mean time lets have fun with it

Posted Using LeoFinance Beta

0
0
0.000
avatar

The government can't stop the decentralized platform no matter the rules they enforce but there are a lot of rules when it concerns the centralization platform

Posted Using LeoFinance Beta

0
0
0.000
avatar

Short of them bringing down the entire internet and losing complete control no they can't do much about software running on the internet that's the best part of this, it's something they can't write out of existence and they don't like that

Posted Using LeoFinance Beta

0
0
0.000
avatar

I think it is important to think in the short and as well as the long term. Fully independent true decentralized exchanges are good for the asset that you would not convert to fiat for your transactions. If you have a certain amount of money that you can put aside then it is okay to have non KYCd exchanges. But, if you want to transact fiat to crypto then you have to rely on one of the regulated exchanges for the short term. Since, we do not have a fully developed consumer market where you can use tokens for everyday activities it is less practical.
However, I agree with you that in the long term, regulations will have to follow the market.

0
0
0.000
avatar

Fully decentralised exchanges are the end goal and its ugly cousins we have to make friends with along the way in the centralised and hybrid exchanges are what we have medium-term

You don't HAVE to rely on a centralised exchange to move in and out of fiat, we do it because of the convenience and them assuming 3rd party risk. However there are sites like LocalBitcoins and paxful that allow for P2P sales and I think this will grow as crypto gets into the hands of more people, but for now, centralised exchanges are perceived as safer.

I do think CEX's will always be around they just won't be as big a part of the market as they are now, some will be happy to pay the premium in privacy while others will want true decentralisation and let the market support the needs of everyone

I am a bit of a snob already so I tend to stick with the most decentralised options

Posted Using LeoFinance Beta

0
0
0.000
avatar

Yeah, we don't have to rely on them altogether.But, there are tax implications and currency exchange you are entitled to report to the government which make the experience not so good. If there were options where I could use the tokens without ever converting to fiat, I would have gone full decentralized.
I agree that CEX will be around but dexs are the future.

Posted Using LeoFinance Beta

0
0
0.000