I remember the years when Bitcoin was just launched and people were brainwashed to believe in the world of no banks, no govt, no form of governance in the world. Only crypto in future doing the financial exchange was pitched as a dream. It was a socialist pipedream being sold. Then the reality slowly started to hit. People realized without having governance of any type world can't move further, instead It'd get on knees to the scary powers out there (let's not get there for now).

So while rewinding back to the time, we found out some of the centralized powers who decided to run startup in the name of exchanges. They wanted to replicate the Forex trading concept into the crypto industry. They are now doing the trades in the pairs, swaps, local FIAT withdrawals. Everything they are doing is in line with the Forex like trade market as of now.

But things don't stop at that. There are some of the exchanges that are offering the deposit based interests. That makes them what? Banks. So how come Banks are replaced by these corporate banks in the name of Exchange or "Interest giving" companies? How is that going to make any difference of they being evil by keeping the money hostage and controlling the actions of consumers?

Let's talk about that.

You Lock Withdrawals When Market is Down

Have you noticed this behavior where banks lock your funds when they are close to shutdown or go bankrupt themselves? They lock ATMs, lock the withdrawals, lock the funds. The same is happening with the crypto exchanges. Coinflex locks the funds of the SmartBCH users. Binance locked it for some time. Coinbase does that often. Every exchange out there is practicing this.

Do you see the similarity of the exchanges with the banks behavior? This goes to show that your funds are in text numbers existing in their network. In reality they have moved those funds in their own investment already. So they are keeping the virtual display of your money being in their account. But they choose the safe zone during which you get to withdraw the same.

You Own the Keys, You Own the Control

Let's say when you download the wallets like ElectronCash and you end up owning your own private keys. So in short your desktop wallet offers you more control on how you choose to work with your address and the respective keys for movement of funds. But that is not possible with Coinbase or other centralized exchanges.

None of the crypto exchange out there let's you control the funds. They own the keys, they own the withdrawals limit for you. They choose when you should take out the money. Something you don't have control over. Think of the control banks had when you hold the money with them. They control everything, that's what they are capable of, which tells you how much you are under control of them.

You Own the Data, But Not With Them

Your KYC is going to cost you a lot in the times to come. They are literally logging your data into the system in the excuse of KYC. They control this data in a cross border way. Like imagine doing the KYC for the chinese exchange. Your govt should hold your personal data because you elected them in power, what reason and excuse does Chinese exchange has for holding your personal data hostage? None.

Almost every exchange out there owns the data and they can sell it for both political and the other reasons. Most of the people out there are under fear that crypto exchanges with chinese funding in them are trying to get hold of this data. This goes to show that there is also military level threat too. Which is something you don't see with the local banks. Since when crypto is about data takeaway using server queries to outside govt's databases?

We all crypto enthusiast started with the dream of trying to reduce or remove the restrictions of the taxes in crypto. And slowly we are moving towards the centralized rules on taxes, KYC and regulation. So in short we trying to move away from banks ended up creating centralized banks for crypto which are more brutal than your typical banks of the past.

Crypto exchanges are not lesser evil, in fact they are more evil than the Banks people started hating in the first place.

Hate me, disagree with me for being the messenger of this truth.

There is no lesser evil in exchanges and ROI giving startups.

It's just Evil like Banks, you give it power for earning interest income from them.