In addition, the critical situation of Steem causes that few people want to spend Steem, they prefer to sell on Bitcoins.
This will continue to be the case as long as we are giving away a majority of the inflated tokens to people who do not need to invest. Right now, there is not only a problem with the amount of tokens flowing out of the system, there's a problem with there not being any reason to hold SP except to earn curation rewards. But as the price continues to fall for a variety of reasons, the risk of powering up and holding those STEEM tokens is too high, even if you can earn a 20% annual return.
With Steemit's plan to delegate (which dilutes stakeholder influence and reduces their ability to earn with SP) and their plan to continue the programmatic selling of STEEM (which puts consistent and predictable negative pressure on prices), it'll be hard to find new buyers and to retain current stakeholders.
The problem is they have so much stake that they can float on the “interest” they own plus a little extra... ideally I’d want them to have 0 steem power so the price wouldn’t have as much selling pressure as it already has due to all this inflation.
Even sbd is slowing down and more steem is being distributed which always accelerates selling
The problem is stake-weighting VP, because it allows the extraction of the majority of the rewards, and prevents that value from inuring to the Steem price by creating more demand, as it would if it was reaching the content creators. The media payout is .01 SBD, and the average payout is ~15 times that, revealing that a couple dozen whales are extracting more than an order of magnitude more than the entire rest of the community.
Wanna grow the price of Steem? Grow the market, not the wallets of whales. ROI from extracting the funds from the marketing division of Steem directly discourages ROI from capital gains, and that's the problem that has not been addressed by any HF. HF21 halves author rewards, doubles curation rewards, and gives the whales another tool to increase their ROI too: the downvote pool. Every time whales flag rewards back into the pool, they get another run at it and extract ~90% of it.
Until stake-weighted VP is no longer is able to extract the rewards that create interest in Steem in new users that grow the market for Steem, capital gains will remain elusive. Profiteers are not investors. They are a plague.