Great question. I'm not speculating the value of STEEM but want to see this whole project succeed as a platform. I have converted some Bitcoins to STEEM and it got trapped for a few days and that's when I start to notice its high dilution. I read the white paper and it's 0.19% per day however the actual rate is much higher. It certainly got my attention then.

I think the SP interests cover most of the inflation but since Steem value is ever dropping, it'll be profitable only when the increase in the quantity of steem > the price drop of steem.