Monkeytrots: "You really do miss the point, Fiz. Exchanges establish the value of every single crypto - including bitcoin."
No, Monkeytrots, YOU fundamentally miss the point: Free trade establishes the value of money. If I agree to exchange a drink of water for a bitcoin, and you agree to the exchange, than that is the value of the money and the value of the water. In that transaction.
What the crypto exchanges do is what any sort of exchange does: it centralizes the exchange value to the highest bidder IN A MUCH LARGER, and generally more regulated, MARKETPLACE. There are pros and cons to that, depending on circumstances. Certainly there is vigorish to the intermediary, and probably the government -- and hopefully some sort of "escrow holder" security for both parties.
That is the argument for "MLS listing" your house instead of selling it direct to someone. Or buying a precious metal, or a diamond, from a private, or smaller market, vs. buying and selling from some sort of central bank.
That is basic economics. Different people play those differences differently, depending on BOTH their sophistication AND their needs/preferences. Have you never bartered down the cost of something with "cash on the barrelhead, or given a price adjustment based on other qualities of a buyer? Of course you have.
I suggest you drop it there and acknowledge that you CAN exhange without an intermediary.
Now, I would agree with you that crypto is especially easy to steal. And once stolen there is normally no way to trace the flow of funds. It is almost the same way with cash traditionally robbed from banks or used in a person to person cash transaction.
If you are going to use crypto for direct purchase you will also have to deal with knowledge differential and whether your wallet is safe. I suggest you get a separate wallet and only put a little crypto in it, just in case. And only deal with people you think have integrity. Ever been short changed?
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