Why is Dangerous For Steem to Over Depend on a single region: a case of Korean exchanges

in #cryptocurrencies3 years ago (edited)

Steem blockchain is undoubtedly one of the best in the crypto space –with regard to processing transactions and support to many innovative apps. All these plus the upcoming Hfork-20 and SMT will lead to steem blockchain being an innovative hub- including home to entrepreneurs around the world.
Conversely, however, steem price has been stagnant for months due to many investors not seeing / appreciating the true future value of steem ecosystem . Moreover, steem gets most of its trading volume from South Korean exchanges and some Chinese(Upbit , Binance , Huobi et al) : according to coin market cap which is ok because South Koreans are great crypto people and thus added a lot of value to the ecosystem. However, over dependent on a single region have many disadvantages –here are some few points:

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Financial distress :It is normal that some regions or firms do go through financial distress and thus cannot meet their/ its financial obligations leading to failure. If this is to happen to S.Korean exchanges due to change of law or government regulations , this mean that steem and SBD value will tank ( remember UPBIT issue with regulators last week? )

Governmental policies: another issue is change in governmental macroeconomic policy-which can affect the investment / spending nature of its citizens . Moreover, wrong macroeconomic policy can negetively affect people and companies doing business in the region. Therefore , steem management should put more efforts on diversification in different regions in order not to put all their eggs in one basket.

Do you agree? Send in your comments, resteem and upvote in order to send in your support.

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A good point indeed . Normally steem is suppose to be in almost all top exchanges and even non top exchanges like BTC, ETH , Litecoin however that is not the case..more work need to be done because putting hopes on one source is bad

I do @charles1, but why do you think Steem I'd yet to spread its tentacles to exchanges in other Countries? That part is partly unclear to me

Great article

I suspect that they have applied in other areas however concentrated on top ones...

Totally agree,most of my country's people who just want to get more profits from this crypto market look like ignoring true value and potential of coin. They just want to know when is the time to buy and sell.

Good point, however those who buy steem and power up will make it in the long

Binance, Huobi

Correct me if I'm wrong. I thought those are Chinese exchanges?

You are correct..thanks fr your comment

If every steemian would buy 10 steem the things would be totally different.

Good point however the total supply of steem is too much to make a big inpact

this platform is broken, whales have the ability to completely down vote your content

I agree, any suggestions to fix it?

yeah meaning full post...i like this..

crypto's are future...

I love your publication, keep that up, friend!

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Agreed with you, a big problem we have!

Can you elaborate?

You are very right, For my Blockchain has no borders as the imagination. Blockchain can be anything you imagine. The Blockchain is a chronological record of transactions agreed by all users and therefore can be used to avoid double spending, that is, to prevent someone from transferring the same token twice. For a blockchain to get the favor of its participants , these must be able to scrutinize their internal functioning.

It is a saying... Don't put all your eggs in one basket. Probably this platform is going in the same direction. You have pointed out a big problem.

good point indeed . Normally steem is suppose to be in almost all top exchanges and even non top exchanges like BTC, ETH , Litecoin however that is not the case.

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lots of good points

woaw iam new in steemit,this post helpfull for me

what is good about the post??

Great post, i follow you my friend @charles1

I agree with you @charles1. Well countries have different policies made by politicians and that's the reason many countries still have disputes. World is not at peace, but yes one who invest on Steem on longer run will benefit.

What most people miss is that this is still far too early for huge appreciation. Time needs to cure these cryptos as well as shuck a few... I remember being in at lower than .07 per steem, not even two years ago. The growth has been great, yet it is still far to early... ho many burgers did McDonald s need to sell before they went exponential (hint over 1 Billion served). Bide your time and just keep building your portfolio in many sectors... oh like Steem.

Definitely centralization in any form is dangerous to crypto, this has always been the case, especially with centralized mining. It's great Steem is so well received in Korea, but diversification will always be the key tenet of any blockchain.

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