Is Supply Steem That Is Always Double 2x Fold Then The Steem Value Will Drain Over Time?

The original Steem inflation rate was 100% (i.e. 2x in total Steem supply each year). However this was changed in HF16 in December 2016.

With HF16 the inflation rate was set to 9.5%, decreasing at a rate of about 0.5% per year, with a final rate 0f 0.95%. It is expected to take 20 years to reach this final rate.

75% of the new Steem supply goes to fund the reward pool. 15% is added as interest on SP. 10% pays for the witnesses.

There is a good argument that this inflation "drains the value" of Steem in the same way that fiat inflation reduces the purchasing power of a currency. The argument would suggest that Steem that is held reduces in value by the current inflation rate each year.

However in my view it is unlikely that this inflation rate will be the predominant impact on the value of Steem over the next few years, given that the market value of Steem is still relatively low (in economic terms).

Increasing demand (or decreasing demand) for Steem (and for crypto in general) will most likely drive the value over the next few years.

[Just my opinion, not financial advice, do your own research.]