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RE: High STEEM DOLLAR Dampens Curation Incentive
Hi @buggedout
Great post. I have thought about this a lot and this is one of the better pieces I have seen written on the topic.
My question is this? Are we in a catch 22 situation. Bid bots are profitable and people need SBD to use them. If you dont have SBD from author rewards (most minnows are in this situation), then you have to purchase SBD from an exchange and this inflates the price. Which makes the upvote bots more profitable. So is the success of the bots at least partially responsible for the rally in the SBD price?
It is analogous to the chicken or the egg question in my mind?
To me this is a question of cash flow. Once you have post rewards coming in you can recycle them through the bid bots if you so choose. So I don't think there is any real demand for SBD on the exchanges coming from bid bot users.