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RE: Why is the price of STEEM still falling!? My proposal to fix the falling price of Steem
STEEM is designed to be inflationary. That's how the system can pay rewards - basically an inflation "tax", similar to how governments finance deficits in the fiat economy. Within the Steemit economy, holders of the token are somewhat protected from inflation if the STEEM is "powered up" or converted to the pegged STEEM dollar. Anyone holding the native STEEM token as a store of value will be disappointed.
There is no inflation tax. It's 100% inflationary with no disinflation method in place. That's unstable in the long run and as we're seeing right now, creates unwarranted sell pressure. The currency will tank if a) inflation is not slowed, & b) a fixed revenue stream is introduced.
Currency faces downward price pressure if holders of liquid STEEM sell for fiat rather than power up. That's not a flaw in the system, it's a feature.
Yes, and without incentive to hold said STEEM they will keep selling it for a profit. That's why the creation rate needs to be slowed or controlled. STEEM needs to be kept within its economy.