Demo for Binance DEX (decentralized exchange):
Currently, everyone holds Bitcoin BTC as their reserve trading currency.
That's because:
BTC has legacy status as the default trading pair.
Trading costs at traditional crypto exchanges are the same, regardless of cryptocurrency. Ex: Binance trading fee is 0.1%, regardless of coin. That's because transactions are done off-chain.
But we've all known the flaw in traditional crypto exchanges: if the exchange collapses or disappears, you lose all your coins, since you don't have any seed words or private keys.
With a DEX, you hold your seed words & private keys. If the exchange collapses or disappears, you should still be able to access your coins on the respective blockchains.
If DEX exchanges take off, that could be a fatal blow to Bitcoin BTC's legacy status as a reserve trading currency.
That's because:
Bitcoin BTC's on-chain transaction costs are 20-200 times more expensive than for other cryptocurrencies (like BCH, LTC, DASH).
Bitcoin BTC has a small block size limit, and can't scale on-chain, so as DEX trading volume increases, Bitcoin BTC's mempool & transaction costs will skyrocket, making it unusable.
RESULT: If decentralized exchanges - like Binance DEX - become popular, Bitcoin BTC on-chain transaction fees will become ridiculously expensive, and people will start looking for a new default cryptocurrency to hold / trade / spend. It will be the end of Bitcoin BTC dominance.
My Cryptocurrency Addresses:
| Cryptocurrency | Address |
|---|---|
| Bitcoin (BTC) | 1G4RKC2G2hNQUPFi6hR62rgSn4aMSremML |
| Bitcoin Cash (BCH, Old Format) | 19LPrKtXEfz6qfSKPxAXtcrvpFQE6BvZYC |
| Bitcoin Cash (BCH, New Format) | qpdkh7lsyvay6q99ysf7qqxz4l5hlq4x7sv0q7menh |
| Ethereum (ETH) | 0xD0bc5F82F0C6012d11D5D693824f0021CB534fD4 |
| Litecoin (LTC) | LQkTMaSTEwzNX1mTZoqNwsopwQrarqtXb6 |
Click the above links for the QR codes.