A recent Twitter poll was started by Ran Neuner who is also the host of CNBC Crypto Trader Show which resulted in favor of the banks as most of the people seem to prefer banks over crypto exchanges as means of saving their money rather than that of Crypto Exchange. Cryptocurrency exchanges may still have a long way to go but not for now.
The most awaited result of this poll was that 68% of 9,734 voters still prefer to put their money in traditional banks rather than putting it on crypto exchanges. It is not like that people don’t want Crypto exchanges, 32% preferred cryptocurrency exchanges. The result of this poll could be predicted by anyone who is following the episode of the cryptocurrency industry from last year.
There are many crypto exchanges which were hacked and have caused the loss of millions of dollars of the users and in many cases, there is no way of getting those funds back. One of the recent news of these hacks is the Cryptopia hack which is in New Zealand. This hack has led to the loss of about $16 million worth of ERC20 tokens alone. After this horrible incident, users at this moment are not sure if they will ever get their funds back.
Recently a Canadian cryptocurrency exchange QuadrigaCx is not letting the users access their funds because the CEO passed away with the private key which is known only to him. As a matter of fact, the case is still engaged in long and careful consideration to decide if it was really the death of the CEO or an exit scam that has locked away $190 million in crypto assets.
These problems continue in increasing the doubt regarding the cryptocurrency industry as a whole and keeps the world away from it. The primary advantage of the cryptocurrency should be the safety of users’ funds and if that cannot be guaranteed then people would instead stick to the system about which they are more familiar with, at least no traditional bank has been hacked and funds are lost.
Honestly, there isn’t much difference between the two. It is because most of the exchanges are centralized, but even worse is the fact that hackers can shut down an exchange like Mt Gox.
This should definitely be a challenge for the industry to pull up the socks and make sure that these exchanges are secure and the information of the users can be confident. Until or unless this goal is achieved, the industry may continue to sneak as far as mainstream adoption is concerned.