Because it pushes people to use non-custodial services and since Monero is private, it's not known whether you're using it or not. The Monero community is really extremely rabid about not your keys, not your crypto. And are always saying, keep your money off of exchanges. Do not use centralized exchanges. Do not use centralized services, etc. The people in the Bitcoin community in 2012 and before are the people in the Monero community now. They know the harms caused by custodians and are in crypto for an alternative to the system. And that's what they fight for.

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Monero is not on many exchanges but not by choice or through lack of trying. Heck, bitcoin is on exchanges and that is also not by choice. But you are focusing on the community, that isn't Monero, so you could say the "Monero movement" fixes this... And power to you. When people say "Bitcoin fixes this", I think a big part of it is how bitcoin incentivises more people to invest in it over time and how when people get burhed, it doesn't just die and so it will continue to gain traction. People who learn about bitcoin learn about money and the evils etc. Then they move away from custodians. Bitcoin fixes custodians too, but it is not an easy or fast battle. If Monero community refuses to make compromises, then Monero stays in a bubble and outside the mainstream. How does that fix anything? Monero does nothing AFAIK to drive adoption or to start the education process. On top of all that, I have never heard the counter-argument to these questions: 1. How can you ever know and/or fix if there is an inflation bug or infinite money glitch? 2. How decentralized is it really if it requires much bigger blocks, beefier nodes, and hard forks are easy to roll out?