2023 has been the year of hacks of different DeFi companies. Not only that, many users have been victims of scams and rug pulls throughout this first quarter, and this without forgetting 2022.
We all love decentralization, the fact that most of us have started to migrate to crypto is to avoid corruption and authoritarian control by governments.
Something that we have realized is that these people with suits are very afraid of the development of this technology, just the simple fact of imagining the financial freedom that people can enjoy and at the same time not having to depend on them for anything, is something that scares them a lot.
BUT IS EVERYTHING THAT BAD?
Many of us know how complicated it can be to learn about crypto in the beginning, and we are even aware that we can make some mistakes in the process. Nowadays there is so much information on the internet to learn, however, there are some people who need the information "explained with apples" in order to fully understand it.
However, this is something that can be very digestible for those who like the content.
The problem comes from the fact that those people who are willing to give a little more of their time to learn a technology that will undoubtedly change the financial world are a huge minority with respect to the international community. Anything that is easy and fast is what people are interested in nowadays. Not everyone is interested in learning such complex things, only what is necessary to speed up or improve their lives.
Here is the first point, centralized exchanges are necessary
Centralized exchanges make it easy for customers to do all the complex work, there is no need to worry about controlling their passwords, much less keeping an extra balance to pay commissions, and in fact, they greatly reduce the chances of your account being hacked.
Of course, all of these facilities come at a cost, but that cost many people are willing to pay.
Because of everything that has happened in the last months we have to understand that not all people are as mentally skilled as we think. Many fall into phishing scams very easily, many are not very careful when making a transaction, they don't even check if the web address where they are is not a cheap copy of the original website...
There are many things that make CEX a good recruiting center for people who are starting in crypto.
I can't give statistics, but 8 out of 10 people I know, when I ask them which wallet, they use the first thing they mention to me is Binance, so, there you have my point.
the second point is the regulations
Everyone loves decentralization until they suffer an exploit. That is the most hypocritical thing I have seen in all these times, and even more so coming from people who hate regulations in all their splendor, but when they need them, they demand justice.
Regulations will always be necessary, not everything decentralized is good, just as not everything centralized is good, there always has to be a balance, but that is something that people have a hard time understanding and prefer to go to extremes.
Do you have to pay taxes? Yes
They must be able to block your transactions? No
Do they need to have your information? unfortunately, yes.
Controls and regulations will always be needed for any financial modality to persist and endure over time. This is something that with bitcoin you don't have to worry about, but with altcoins that is another story.
the third point and the last. United States is not the center of crypto, but it is very important.
The loss of this territory would affect the cryptocurrency market as never before. Therefore, although crypto finance can continue to thrive without the U.S., it is far better to adapt to its regulations and controls for optimal growth and a healthy future for this technology.
Gradually we will see how this system grows and the adoption will be increasing, but this will not happen until people see this totally safe, because even this technology is still unknown to many.