The moment apps looking for delegation can offer a better return on investment than bid bots, bid bots will be gone.
Tonight my dad was here, we watched a movie (Sully) and we also talked about Steem.
As you know he is invested.
His STEEM is in a bot, my dad has no time or interest to curate but he believes in the potential of the platform (mainly Steem Monsters) as I explained it to him.
He's looking at 1% return on his STEEM per month in STEEM (not dollars).
If you look at STEEM purely as a currency that is not bad.
For example, the bank nowadays gives you 1% return per year on savings.
Now, it's no secret that not everyone is a fan of bid bots.
Me? I see bid bots purely as a business, just like any app or frontend on the blockchain.
They are popular for investors to park their STEEM because they give the best short term return without any effort (also known as a passive return).
Now, you also often hear that 'we' need to fight the bid bots, because they hurt the platform.
I disagree, I think it's the wrong approach. There is no need to fight.
The solution is simple and it's this:
The moment apps looking for delegation can offer a better return on investment than bid bots, bid bots will be gone.
Why? Because investors will simply park their SP in these apps, maximising return.
No need for drama, no need shouting, just capitalism at work.
How can this be done?
Well, the only way bid bots make money is by targeting the reward pool and they are the most efficient at it.
Any app that tries to combat a bid bot when it comes to ROI from the reward pool will lose.
But the reward pool is not so big and Apps can do something the bid bots can not.
They can target the STEEM, other crypto and even Fiat that is already out there.
It's a much bigger pool to fish in and offers a way to give a bigger ROI to investors than a bid bot can.
In other words the secret is a second revenue stream to pay passive investors to delegate their STEEM to you.
This is not only healthy for the platform but also healthy for the apps themselfs because relying on the reward pool as a business model is simply a bad idea.
Especially with current prices.
Now, admittedly it's not easy to do this, it never is, but the first app that manage to find a way is looking at some epic delegations and growth.
mm....
I don't know how I got here. All I wanted was to make a short post that I had a great night :)
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I think you meant "bid bots" not "bit bots".
Thanks! It's late!
No problem. I enjoy reading your blogs.
i have never understood the hatred towards bid bots.
they exist because of a need. and i look at them as a promotional tool. sure it can be abused. but so much can be.
you are bang on man. once people don’t have a ‘need’ for something it would be replaced.
bid bot owners will have to adapt and create more value for their investments too.
which is great. entrepreneurship is an awesome thing lol
Posted using Partiko iOS
Smartsteem is the greatest example. They started to shut down the abusers and only allowed clean content to be upvoted on their network.
There are a few apps like Share2Steem that are rapidly growing, and I think a lot of delegated Steem will come their way very soon! The bid bot will have lots of competition in 2019.
completely agree. great example!!
Posted using Partiko iOS
I think it's an option on Smart Steem to select a white list to sell your vote IF you want too.
I'm not 100% sure how it works for delegation.
But the same ROI rules still apply. It's coming from the reward pool and not outside of it.
How will Share2Steem make money outside of the reward pool?
Good question. One way they could generate revenue outside would be to have various paid account tiers that give added benefits. A subscription model of sorts.
There is huge opportunity for dapps! If one steps up with a great one, they probably can get a over a million delegation 😎
Posted using Partiko iOS
Considering there is tens of millions of STEEM delgated to bid bots I would say the first app that figures this out is looking at a lot more.
I agree and wish for the right model to come out and move the masses to show the true potential of this blockchain. It is out there and over time it can be done! We also need investors so bid bots have room in the ecosystem; it is those that abuse them that should be adequately educated on the harm done to the community.
Posted using Partiko iOS
Just need to create a few more dapps like SteemMonsters. This time make a dapp that targets the masses and relies on other forms of payment rather than reward pool as you said. I'm not technical, but can an App evolve into a Dapp? Just thinking of how influencing current popular apps out there to accept crypto. Yet with such volatility they might be worried of substantial losses. Thinking all the time about the next killer dapp!
Posted using Partiko Android
I've been saying for a while to people around me:
Web 2.0: invitation
Web 3.0: delegation
SteemHunt is the best example of this on the STEEM blockchain. Only SMTs missing...
sigh
One day!
I'm not sure I follow; do you mean they can get investors to buy into Steem with other crypto just for investing (delegating) to their dapp because of the returns?
If they find a second revenue stream (example: advertisement, selling of a product) they can pay this ROI for the Steempower delegation in STEEM or any other currency. As long as it's more than a bid bots offers.
Oh, I see what you mean.
hi,
As I think of bid bots is like paying youtube to display your video's before or during other video's. It's like ok I want more to be seen I wil take a bidbot and pay some, with also return of investment. hmm butif you say ok (I said it last week or so) You will delegate or take a subscribtion to pay for the app yeah.. and there is already a bitbot taking weekly subscribtions. I dont know how they do it but they do it. Maybe I should try it out some time to see how it works. I'm playing another game also now they come almost daily with updates it's a strategic game and you want to buy stuff really haha to get further in the game. yeah I fell for it.. I know many apps are serious apps. But as of I know there is already a steem subscribtion possible. steemmonsters has also a way to get fiat and i know a lot of apps on my phone has a little free version and subscribtion based version with ideal paypal creditcard etc. Think O you want the free version? I must eat too so here are some adds. you want the adds gone? Ok pay for no adds.
I'm still up I should be in bed but the server calls me again. Tomorrow or the day after I get the free server upgrade to like 60gb also I get a new server so everything will be moved to something faster then the 10 cores I already have, what isn't needed anymore I think because it will be like 5 gb well who knows. nightynight
Man you have a lot of words to share.
When they are genuine they flow down stream easily.
Keep on postin
Posted using Partiko iOS
today the banks gives you 1% per year, tomorrow We have to give them 2% per year to take care of our money (witch they don't ). Show that finger to the banks and buy crypto!