Vitalik Buterin, the co-founder of the second popular cryptocurrency Ethereum, criticized centralized exchanges and stated “I hope they will burn in hell”. What was the cause for such a statement? Moreover, if we consider, that cryptocurrencies have existed in the market for quite a time, and decentralized exchanges have just started establishing their business. What was the reason to say so about the only for now means to deal with cryptocurrencies?
He said as well, that decentralized exchanges should move more actively, as this will allow to take away the power of centralized exchanges.
The main reason for such statements is the ability of centralized cryptoexchanges to make decisions about the cryptocurrencies, about which cryptocurrencies should become big. Moreover, they charge those crazy fees that sum up to millions of dollars. And, in his words, further blockchain development and the decentralized exchanges are the things that are needed to make cryptocurrency move further as it shall be.
Decentralized exchanges still lack many features, including the liquidity that the centralized exchanges can provide. However, in decentralized exchanges, users are those who decide, not the exchange. For example, if somebody puts a gun to his head, he would write a hard fork, but only users will decide whether to download it or not. This is a huge advantage of decentralized exchanges: nobody can dictate the users what to do.