Both will exist and offer everything one would want from the appropriate platform.

I don't see something bad happening in the long run with their coexistence.

First of all, bitcoin being decentralized is the main reason it's even valuable, and core reason why people investing in it. Skeptical part comes people being scared that it can be affected by centralized parties.

When it comes to CEX and DEX, it's too early to tell. As long as people can trade, i don't care if they do it in a back alley or some centralized financial institution version of it.

Dex could play a bigger role depending how that field will be developed, but it could clash with centralized elements of regulations. Also, with dex i see issues with untested, hard to use tech and exploits it could have.

CEXes has always had more user base, and I don't see it changing anytime soon. I think most people just prefer the convenience and liquidity of CExes.

No to mention, authorities aren't fond of anything that is privacy oriented or doesn't have their favorite KYC/AML policies implemented. It wouldn't be surprising if they/their devs get hunted down. Meanwhile, CEXes who comply will keep themselves afloat.

Government don't like decentralization since they want to control everything about the citizens including finance. As more governments get engaged in the crypto industry, they will do everything possible to centralize the market. It's already happening in the UK and Europe with several laws targeted at making citizens lose privacy. Markets in Crypto-Assets Regulation have been portrayed as a means to safeguard EU citizens against fraud but t is also a tool to reduce decentralization.

As government get involved we might start seeing several restrictions on decentralized exchanges which include laws that mandates then to provide customer information in some situations. Some of them might even be banned in some location. While centralized exchanges that cooperates with government authorities will blossom.

Currently, crypto exchanges are ranked based on the kind of support they get. Those who get licensed with government and regulatory authorities are who some law-abiding citizens are patronizing. Some consider crypto exchanges that are centralized and regulated as a safe place to trade, which is what the authorities have made them believe. Unless there is a change in narrative, it will continue to be this way. In terms of volume, centralized exchanges will continue to lead the way.

Dex will never be equal compared to the Cex. People are still preferring to use convenient platform such as Cex to trade, and the support from the government is just strengthening Cex as many get license to operated in the various countries.

If you're also paying attention to the various metrics owned by Cex and Dex, Cex is obviously front running Dex in almost everything. It's only not decentralized as Dex, but who cares these days?

The government involvement is just bolding Cex to always dominating the crypto. No chance for the dex to catch up Cex.

I really hope DEX is the future, something like hyperliquid where liquidity is good and it's actually usable.

The problem about CEX is that it can literally freeze your account out of the blue without any reason at all, you can literally did nothing but just trading and your account got frozen. Just look in X and you'd find so many people got their account frozen. Some even got their account frozen while they still open trade position and as a result they could lose their money to volatility and can do nothing about it.

Dex in the other hand, is very transparent and you're not gonna get your account locked out of nowhere.

Dex and cex can never be treated equal or have  equal treatment, because cex has it function while Dex has it role to play in the world of cryptocurrency. government involvement into one will definitely be on cex because it has been their obligation to make blockchain technology to be centralize instead of decentralize to be in total control. no one will suppress the other as we need cex to echance crypto to fiat and we need Dex to store our bitcoin or cryptocurrency for a long term and not vise versa.

Do you think people would store their funds on DEXes more, rather than on cold wallets or something similar?