Is its initial centralization and dependence on legacy sovereign fiat cash.
Bitcoin, Litecoin, ZCash, Byteball are no exceptions.
Neither is STEEM.
Neither are sovereign fiat currencies.
In one word it can be called exclusiveness.
There were and may be times, when these currencies can turn to be profitable trades, but even then, it is usually safer and more profitable to (pre)mine them this way or another.
In Bitcoin's case, it was once relatively easy and cheap to mine, and the people doing so usually kept it as a secret for themselves.
You can read about a personal experience I had with it in one of my past threads I posted a few weeks ago.
I also read in the past, that one person whom discovered the possibility of STEEM mining and started mining it, found his work cancelled by the initial STEEM crew, and his mining work done for vain.
The initial distribution phase is never honest, and future buyers have to buy from a cabal that was early enough in it.
Bitcoin's initial distribution was proof of fiat cash.
Not just fiat cash, but it was quite correlated with it.
Byteball's distribution was not through mining, but it depended on the existence of Bitcoin in certain wallets, so was it any fairer?
STEEM was not even fair in its premining stage, if you believe the story I shared without citing its source, which I did not keep.
Fiat cash is too long and too old to start elaborating about now.
I do wonder how these people from this closed club find about currencies to premine on time, but they will not share it with us in time.
Instead, they will wait for others to participate in the ICO like good suckers do, or buy it later from them.
The closed club of preminers is worse than the almost closed club of witnesses.
Witnesses could be voted out, at least in theory, by voting other witnesses in.
Witnesses are elected, at least in theory, by providing good service to users.
The preminers already won and need no further work or risk because they already profited on your expense.
Somewhat similar arguments remain valid for miners/masternodes/uncles instead of witnesses.
Do you know about 1 fairly distributed currency?
Do you know about 1 fair distribution method for a currency?
My answer to both questions is no.