To what extent can we be sure that centralization is what the cryptocurrency market needs to mature and move forward?


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I'm not so sure that centralization is what the crypto market needs, especially when you consider that the governments of the world have always wanted to get their hands on and be able to govern decentralized cryptocurrency finance.

If we take into account that Sam Bankman-Fried has admitted being a donor to the presidential political campaigns in the United States, it leaves a lot to think that this bias together with the fact that the governments of the world want to regulate cryptocurrencies, there is no security to deny the fact that the bankruptcy of FTX has been well programmed and managed by the U.S. government and Sam Bankman-Fried to justify an intervention to the exchanges to be regulated and thus supposedly regain confidence in cryptocurrency investors and the entire crypto market in general.

Another point to take into account is that some consider that Binance has taken advantage of the FTX bankruptcy to monopolize in its favor the entire crypto market, I do not know if it will be that way, but if so, it is very dangerous, since what can mean a takeover of the entire market can be reduced rather to a tendency for users to stop trusting the exchanges out of fear and take their possessions to cold wallets.

What I do believe is that with all that has been created after the bankruptcy of the FTX exchange has created the perfect excuse for tough regulations to come, like it or not, there is the perfect excuse served to regulators to act, in case there are individual interests by some players who wanted all this to happen, I think the shot may backfire.

The exchange that today wants to gain confidence has to show its liquidity, it is what is in trend, however how to know that these reserve data of many exchanges are real and not manipulable? Another reason for them to be auditable and lose any decentralized character.

From my point of view if the decentralized character is lost by regulations implemented, perhaps the only ones to blame are those who in their time advocated decentralization and for their mismanagement of funds will now see how the centralized will be what governs.

From my point of view the exchanges are between a rock and a hard place, as they must demonstrate how decentralized they are in order to gain the trust of users who believe in the decentralization of cryptocurrency as a mechanism to free our finances to be intervened by the governments of the world. But coupled with this they will have pressure from regulatory governments asking to get into their data and all will be justified by the latest events of the FTX bust.

The exchanges will have to become a love-hate relationship, i.e. to show decentralized to the users, and on the other hand to show centralized under the interventionist character of the regulators, what is clear to me is that if the measures taken from now on are honest and will really regain the confidence of crypto investors and the entire crypto market in general, then I can only say that any measure that helps to recover all this is welcome.

The above said is only the ideal, but we all know that centralized is what is supposed to be more auditable and secure, however being so FTX still fell, if within the centralized in the same way there is a lack of security, then you tell me: What do you prefer centralization or decentralization?

All the events that will be triggered will open the debate on regulations, centralized or decentralized character of crypto projects, exchanges and in general of the whole crypto world, I hope that the best decisions will be taken.