The cryptocurrency advocate, John McAfee, said that decentralized exchanges could trigger an economic boom. Additionally, he mentioned that centralized platforms would cease to exist in five years.
John McAfee Bullish on Decentralized Exchanges
There are centralized and decentralized virtual currency exchanges. Centralized platforms work in a similar way as traditional financial exchanges. There is a third party that controls and regulates the flow of money in the platform. Additionally, for each transaction processed the user needs to pay a fee.
Decentralized platforms (DEX), instead, do not have a middleman as centralized exchanges. Users are able to easily transact funds between each other. This is very positive for Bitcoin. Centralized exchanges go against the decentralized nature of virtual currencies.
Some days ago, Mr McAfee wrote a tweet in which he mentions that decentralized exchanges will mark the end of any potential control by governments. In addition to it, he said that they will start the largest economic boom in human history.
Moreover, he stated that most centralized exchanges would disappear in the next five years.
About this, he commented:
“Because I do not care how much power you have as a government, how many police, how many soldiers, whatever. If the exchange is distributed across 20 million wallets on smartphones and laptops and pads, then what do you do? It is impossible. You would have to shut down all twenty million of them scattered around the world.”
At the moment, most of the virtual currency exchanges in the market are centralized. Decentralized alternatives have no liquidity and are not user-friendly. Developers need to work in order to create attractive and convenient decentralized exchanges. Until now, centralized platforms seem to be much more reliable and easy to use.
This prediction about centralized exchanges is not the first one made by the crypto analyst. He has also given his opinion about Bitcoin’s future price. He mentioned that the famous virtual currency would reach $1 million dollars by the end of 2020.