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Is it economically and practically possible to create a system where investment cannot take place?(or if it does, it doesn't affect the system in a big way like Bitcoin had extremely high prices due to low supply and high demand)

What I thought of is a system where after a certain threshold(coins*time_left_inactive) the coins return to the system as a reward to every miner proportional to the hashing power they provide the system with.

But this has a problem, in order to bypass said limitation one can just continue transactions between two(or more) wallets and miners would be mining fake(I couldn't think of a better term here) transactions, greatly increasing the hashing power the system requires unnecessarily.

I don't know of any existing currencies that tackle said problem(Obviously) So if there are any, please let me know, I'd like to look into 'em.

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You could try demurrage, where the value of one's holdings is intentionally reduced periodically. Freicoin is the only example I know of in the crypto space.

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