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Why centralized exchanges are not antithetical to Bitcoin

There are some views that centralized exchanges, ETFs, etc are just more of the same old centralization, and that their existence is somehow bad for bitcoin. Some seem to think that all centralization is bad. I'd suggest that while decentralization has its merits, the problems in the fiat system isn't that trust is present, it's that trust is required.



Trust is valuable, we should use it when we have it. For example, many hard core bitcoiners want to self-custody their bitcoin. But if you have direct access to your keys, it means any burglar can potentially take your entire life savings with the right, ahem, motivation. Bitcoiners counter by distributing their keys to loved ones, but aha, this utility is derived from trust. When you have people in your life that you trust, you can use this trust to make your assets and your life safer and more valuable.



In the West, most people trust, say, BlackRock not to steal their money. As a result, they can avoid the risk of self-custody at a reasonable cost each year. Centralization isn't the enemy, it's forced centralization that is such a breeding ground for fraud and abuse. Bitcoin gives people a choice, and that is it's true power. Happy to hear things I may have overlooked though, my favorite thing about bitcoiners is how often they've helped me learn new things. submitted by /u/BitcoinBaller420
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