Binance DEX (decentralized exchange) could kill the dominance of Bitcoin BTC, since all transactions are done on-chain. This will expose the flaw in BTC's small block size limit, and cause BTC transaction fees to skyrocket.

[normalrc]

Demo for Binance DEX (decentralized exchange):

Currently, everyone holds Bitcoin BTC as their reserve trading currency.

That's because:

1. BTC has legacy status as the default trading pair.

2. Trading costs at traditional crypto exchanges are the same, regardless of cryptocurrency. Ex: Binance trading fee is 0.1%, regardless of coin. That's because transactions are done off-chain.

But we've all known the flaw in traditional crypto exchanges: if the exchange collapses or disappears, you lose all your coins, since you don't have any seed words or private keys.

With a DEX, you hold your seed words & private keys. If the exchange collapses or disappears, you should still be able to access your coins on the respective blockchains.

If DEX exchanges take off, that could be a fatal blow to Bitcoin BTC's legacy status as a reserve trading currency.

That's because:

1. Bitcoin BTC's on-chain transaction costs are 20-200 times more expensive than for other cryptocurrencies (like BCH, LTC, DASH).

2. Bitcoin BTC has a small block size limit, and can't scale on-chain, so as DEX trading volume increases, Bitcoin BTC's mempool & transaction costs will skyrocket, making it unusable.

RESULT: If decentralized exchanges - like Binance DEX - become popular, Bitcoin BTC on-chain transaction fees will become ridiculously expensive, and people will start looking for a new default cryptocurrency to hold / trade / spend. It will be the end of Bitcoin BTC dominance.

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My Cryptocurrency Addresses:

 

Cryptocurrency	Address
Bitcoin (BTC)	1G4RKC2G2hNQUPFi6hR62rgSn4aMSremML
Bitcoin Cash (BCH, Old Format)	19LPrKtXEfz6qfSKPxAXtcrvpFQE6BvZYC
Bitcoin Cash (BCH, New Format)	qpdkh7lsyvay6q99ysf7qqxz4l5hlq4x7sv0q7menh
Ethereum (ETH)	0xD0bc5F82F0C6012d11D5D693824f0021CB534fD4
Litecoin (LTC)	LQkTMaSTEwzNX1mTZoqNwsopwQrarqtXb6

Click the above links for the QR codes.

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