Since the birth of steemit in 2016, Steem dollar as rise and will continue to do so (according to financial analysis ).
But recently, it has got me thinking "WHAT IF STEEM DOLLAR CRASHES DOWN?
just like any other crytocurrency, Steem dollar is face with limitation such as:
(1) The fact that one’s digital fortune can be erased by a computer crash.
(2) That a virtual vault may be ransacked by a hacker – may be overcome in time through technological advances.
What will be harder to surmount is the basic paradox that bedevils Steem dollar – the more popular it becomes, the more regulation and government scrutiny it is likely to attract, which erodes the fundamental premise for it existence.
While the number of consumer of Steem dollar has increased steadily, it is still very much in the minority. For Steem dollar to become more widely used, it have to first gain widespread acceptance among consumers. Hence the need to build a community around ourselves, introducing it to all who find themselves online. However, their relative complexity compared to conventional currencies will likely deter most people, except for the technologically adept.
According to financial analyst about crytocurrency - A cryptocurrency that aspires to become part of the mainstream financial system may have to satisfy widely divergent criteria. It would need to be mathematically complex (to avoid fraud and hacker attacks) but easy for consumers to understand; decentralized but with adequate consumer safeguards and protection; and preserve user anonymity without being a conduit for tax evasion, money laundering and other nefarious activities. Since these are formidable criteria to satisfy, is it possible that Steem dollar in a few years’ time could have attributes that fall in between heavily-regulated fiat currencies and today’s cryptocurrencies? While that possibility looks remote, there is little doubt that as the leading blockchain in cryptocurrency at present, steemit success or lack thereof) in dealing with the challenges it faces may determine the fortunes of other cryptocurrencies in the years ahead.
Conclusion
The emergence of Steemit has sparked a debate about its future and that of Steem dollar. If Steem dollar aspires to become part of the mainstream financial system it would have to satisfy very divergent criteria. While that possibility looks remote, there is little doubt that sternly success or failure in dealing with the challenges it faces may determine the fortunes of Steem dollar in the years ahead.
