@tshering-tamang I like Mike Maloney and consider myself a goldbug too and the video has many good points, but also misses a few concepts.    Yes there are many things wrong with the current traditional fiat/central banking system, but that's another huge topic to discuss.  With Steem,  the software network distributes new Steem just like the Bitcoin distributes new currency to miners.   Part of the allocation of new Steem is used to create Steem dollars.  Let's say hypothetically the Bitcoin network wanted to issue Bitcoin dollars instead of issuing just Bitcoin to miners.  The Bitcoin network could created 1 new Bitcoin and then create a loan on the Bitcoin of $35 and issues that to miners.  Miners now have $35 in Bitcoin dollars backed by a Bitcoin that is worth around $700.   People would be extremely comfortable with that.  The Steem network does something similar and tries to maintain the debt level at  5%.  That's very conservative.  In the modern economy banks sometimes create fiat money at 100% loan-to-value (LTV) meaning if real estate prices go down banks have less collateral to back some of the money that they created in the past.    

The Steem software network could be designed to just issue you Steem directly.  However when you eventually sell $1,000 in Steem to someone else it could be worth $800 or $1,200.  Instead the network issues you $1,000 of Steem dollars based on $20,000 worth of Steem collateral so you don't have to worry about the volatility.