I am 4 days old now, my back is hurting me ,I am getting old 👴🏻. But for real I am even older, my profile can confirm that I have joined Steemit 4 months ago, the 9th March.
Naturally I started Steemit as an investor because it is what I do the best in the old world. I have touch the finance sector when I was working in a asset management company.
In addition to this, the time learnt me that when you invest your money, the earnings always go with the risks, one can't exist without the other one. It's the two sides of a coin, there is no heads without tails nor hate without love.

You can always win more but what is the risk?

«Lot of risks mean lot of earns and so on, few risks mean few money ». The order of the words here is very important, too much people are thinking: « Lot of money means lot of risk ». The earns are just a consequence of the risks. Your investment management must be lead by the risk and not by the performance. Before investing your money, the first question that you must ask to yourself is : How much I am ready to lose? If the answer is $10, sorry but you will never be rich like that, you will have more chance by working to learn singing.

Few people, like 50 Cent are thinking « Get rich or die trying ». By thinking like that 50, it’s normal that you have finished in bankruptcy. Here is your big mistake nigga: someone who is read to die has nothing to lose, and if you have nothing to lose you have nothing to risk. Remember 50, our Golden Rule above tell us that if we have nothing to risk, we will have noting to win…

The old world

When you trade, your portfolio should be exposed when the market is bull and hedged when the market is bear. It is easy to make money in a bull market but what to do when all the market is red? How to hedge your portfolio? Which support to choose?
The answer to these questions is the confidence, you will reduce your exposure by buying something that everybody has in trust, all the system is based on trust and faith. In the old world, until the Bretton Woods Agreements, on the 18th December 1971, the must trusted thing was the « Gold Standard » but now it is the famous 1 dollar bill. In red market, if you don’t want to lose money you will sell everything to get some cash. I know you dear Steemians, you will tell me that the dollar can lose its value also, in case of crisis it even can lose all its value. I want to say you that you are totally right, but… There is always a « but ».

The significant thing to understand is that to lose money is not a problem… if you lose less than the others. The value of one dollar is not very important, it’s the purchasing power that it gives you that we must take into account. In case of crisis, your owned 1 dollar bill will lose all its value yes, but it will be the same for every body. If you had more 1 dollar bill than the other people before, after the crisis you will always have more 1 dollar bill than them. The price (the value) of all the features in the malls will be adapted to the situation of the population and you should always have the opportunity to buy your house.

PS : When I say red market, I mean when the price of all security is going down in same time. Red market is an image, because in all the countries all around the world expect in China, the color of a decreasing price in the dashboards is the red and green for an increasing. In China it is the opposite because the red is the symbol of the happiness. So Chinese Steemian friends by red market in this post I mean bear market.

The new world

In the new world of the crypto-currency, the most trusted thing is still the dollar. So if you have bought crypto-currency and they are all losing their values, you would wanted to sell them to buy dollars. Yes, but by doing this you switch world. When you sell crypto-currency and buy dollar, you leave the new world to go back in the old world. Changing world (in both direction) is very expensive with big fees, you can’t do this often. The solution would be to find a trusted thing in the new world with less fees: the bitcoin. I don’t know if people has trust in bitcoin but at least it is the first crypto-currency, the oldest coin. Today the « cash » in the new world is not 100% the bitcoin because everybody still has a banking account in dollar, with a credit card, with a real estate loan and must buy the toys of the children for the happy birthdays. But one day, in 5 years, 10 years, 20 years, 50 years,… when the old world will not exist anymore every body will have a « blockchain account » in bitcoin.

Trading from altcoin to bitcoin has also a price, less than with the dollar but there is still a fee. So why not create a trusted coin with no fees?

The new new world

The Steemit world which is for me the new world of the new world (the new new world) found a solution for the problem of fees: the Steem Backed Dollars. Trading in the internal market between the Steem and the SBD is free, so if you think that the value of the Steem will decrease in the next days, you would wanted to sell your Steem to buy SBD. Yes dear Steemian, you guess the next question: Do we have trust in SBD?

The kryptonite

The idea of the SBD is a real revolution, it’s what is distinguish Steemit from the others projects of altcoin. It was created with one promise: 1 SBD = $1. To have confidence in SBD the Gods of Steem promise us that the SBD will be indexed on dollar like an simple ETF.
PS : The day when the old world will not exist anymore we can assume that the promise will be update to 1 SBD = 1 Bitcoin.

If this Golden Rule would be true thank to SBD :

The investor could stay in the new new world because he would have the needed support to hedge his portfolio when the Steem would be descreasing.
The « bonus pater familias » could stay in the new new world because he could trust the SBD to keep money for the university of his children.
The new new world could be in the real economy. One day, in 5 years, 10 years, 20 years, 50 years,… it will be possible to buy our bread, our car, our house with SBD.

But we saw that the God of Steem didn't follow the Golden Rule. The SBD worthed more than $2, that means more than 100% of performance. Today everybody is very happy, but it’s very dangerous because if something can take 100%, it can also lose 100%. And the most important thing is: what is the interest of SBD today?

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Today, the SBD is an altcoin like the others. For what reason buying SBD instead of Steam? There is no interest to keep our Steem in our Steemit wallet and trade them in the internal market because we can’t hedge them with SBD. We are obligate to send our Steem in a platform like Poloniex where it’s possible to buy Bitcoin when the Steam is going down. If the SBD stay volatile like this in the futur, it will be difficult for the Steem blockchain to enter into the real economy, and the Bitcoin will stay the dollar of the new world.

So please the Gods of Steemit, if you read this post, please the SBD must stay indexed on the dollar, it is mandatory for the long term of this wonderful project. 1 SBD <> $1 is the kryptonite of the Steemit world and even Super Man can’t survive to kryptonite.

Unfortunately, I suppose that even the Steemit Gods can do nothing. I don’t know how it works, I don’t know how we would kept the value of SBD indexed to the dollar. In capitalism the price of a security is determined by the book market. The only solution that I see is to buy and sell SBD opposite to the market to maintain the rate to $1. That is what the Swiss National Bank did with the Swiss franc between the 6th September 2011 and the 15th January 2016 to maintain the Swiss to €1,20. Even the Swiss State could’t do it more than 3 years because it is very expensive even for them.

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