Do You Believe Crypto Exchanges Are Decentralized? You May Not Understand The Fundamentals Of Crypto

Crypto Exchanges Are Decentralized!

Crypto Exchanges being Decentralized is one of the biggest misconceptions of using a Decentralized cryptocurrency. Bitcoin is Decentralized in nature, but is it completely Decentralized? Yes and no is the short answer, keep reading for the long detailed answer.

Bitcoin is to be considered Decentralized since the Bitcoin Ledger is fully distributed and agreed upon by all the Bitcoin Miners. That is as far as Bitcoin Decentralization goes, or is it? When you want to buy Bitcoin, you have to have a way to transact with the Bitcoin Ledger.

Most of all, you have to have something to trade for Bitcoin. The most common trades being on large exchanges where the user can buy Bitcoin directly from their Bank Accounts. Bitcoin ATMS have been emerging in the United States of America, which brings us closer to a form of Decentralization.

However the ATM providers have to be licensed in the United States and comply with local and federal laws of the United States. I am sure if the government wanted to black list your address they would force their hand in doing so.

The popular opinion is the only way to be truly decentralized is by holding Bitcoin in a cold storage wallet that only you truly have the keys to. That sounds easy enough, right? However that doesn't simply solve the issue of being decentralized.

Are you still confused?

When you start thinking about what it means to be truly decentralized, you should expect to see a crypto currency that is accepted anywhere or is easily converted to any asset/currency.

Bitcoin really seems to be the peoples champion in the arena, but when you start to examine how easily the government can limit your ability to transact with certain assets it becomes painstakingly obvious that decentralized is a an imaginary term used to lure us all in to a more centralized asset class that appears to be something it is not.

The blockchain records every ting that happens on it, that is how the ledger is created, right? Sounds really awesome but when you start thinking decentralized and anonymous it is not. Most exchanges require some form of KYC in order to activate a trading account.

When you want to transfer money to a bank account you are allowing another method of tracking, signing up to use an exchange with a known email address, SSN and using any other form of identifying information. You will find that you eventually run into the transaction that will identify who you are.

That is the benefit of a cashless society, for the government at least. When you start asking these questions or even presenting these facts people will start arguing, no that isn't true...but they can't prove the contrary.

The number one point of tracking someone in the world of crypto is at on boarding. There are some ways that a person could come across crypto with every giving up their identity until the point of exiting crypto.

Presumably a person could earn Crypto Currency online via air drop, writing on read.cash, publish0x or doing services for someone. That could than purchase gift cards from several sites that offer gift cards for crypto.

These sites could be easily forced to restrict access to certain wallets and depending on what services you use gift cards for they can track you even easier. The age of artificial intelligence will likely play a major role in the tracking.

However the tracking is some thing the government has been working on since the conception of Bitcoin and the older the ledger becomes, the easier it is to track. When you have physical paper money you can avoid detection to an extent.

Eventually you have to pay bills that link you to money. This is the issue we have with the current fiat system that we are working on abandoning for an upgraded monitoring financial system that will one day successfully track everyone.

How Could Decentralized Truly Work On Block Chain?

The whole concept of Block chain is tracking... However even if you invent a truly decentralized entity that operates as an exchange that can't be shut down or stopped by any one government or not. The need to migrate funds back to a traditional banking system is what cancels the decentralization of everything.

Hypothetically if everyone excepted Bitcoin as legal tender. Than you made the odds of successfully tracking individuals even higher. I know a lot of people will disagree. I welcome those that disagree to respond.