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Why do you feel bitcoin at an exchange retains some of bitcoin's value props? Also which ones?

Borderlessness
Digitally native money
No inflation

I think for these.
But, yeah I don't believe that anyo e must be hodling there. CEXs are for trading only.

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Digitally native is a good point.

The other two: I am not so sure about.

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I must admit, I'm not well versed to answer this but for the sake of trying, here's my reply-

Borderlessness because, we can send or recieve payments there as well.

No inflation because the value is written same on custodial or non custodial wallet.

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