Bid Bots-Pros and Cons
Virtually everyone on Steemit find the bottracker.com and instantly they are thinking they have it made. Just keep sending these bots money, they send me votes, I keep gaining, end of story we all live happily ever after. Well that's not the case unfortunately, especially right now. In looking at a recent study on here I saw that 30% of Steemit's overall economy is placed in the trust of these bots, meaning 30% of the reward pool.
You have heard a lot about the reward pool if you haven't already, being new to the platform, it really sends people into orbit because it is more or less how the people of Steemit capitalize on its gains. The thing is, right now the bots for a massive majority of the time are net loss investment wise, meaning the vast majority of the time when you use the bid bots, or even most of the fixed rate bots, they are net losers in the end. How do you know this? If you do not get a 2.5 multiplier on your bid given to a bot, you are not guaranteed a profit, let alone break even point.
If you are using them to promote your post, to push your post higher on the trending levels of the hash tags you are using they will do that, that is for sure. They are great marketing tools, and that is how they should be viewed as of right now. You are investing your money at a virtual certainty to a loss, or very minimal gain (with a very high risk attached) on the financial end.
This is part one of two that I will come out with tomorrow in how I feel people can combat these realities as of right now on Steemit under the current circumstances and realities of today.
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I've only ever once used a bot just to try it out (the treeplanter bot). I felt a little less guilty about it because it's "for a good cause" or whatever. But yeah, it wasn't worth it financially, and I don't think it did much for promotion anyway. It was an experiment that I don't intend to repeat.
Thanks for the comment @malloryblythe, interesting. The people that run treeplanter do support a really great cause and it's nice of them to let you upvote your own post if that's what you did, because usually they ask that you use it for someone else's post, if that's what you did. The bid bots really served a solid purpose when first joined a little over three months ago, when the price of steem was really on the rise. Now that the price of steem is much lower there is less value in using them usually because a lot of the delegations these bots purchase were much more expensive then, but will fall sooner, but making the cost less but still having less value to the bot owners because of the decreasing average value of steem and post post payouts. I don't think there is anything wrong with using them at all, I just feel a lot of people are using them right now are basically throwing money down in the drain if the sole purpose is not to promote their post. I feel there is greater value in hanging onto your resources and pursuing other avenues that serve the individual's interests, whatever that may be. With all due respect to the bot owners, they are fine people, but I would rather not donate a large portion of my earnings to the people that make up already such a large portion of the steemit economy. Lol, I probably need my resources to grow myself and my friends more than they need them to do whatever it is they plan on doing with my resources I toss their way at a surefire loss.
Oh no I didn’t realize that they’re only for upvoting other people! Now I feel like a jerk. In that case, I will use it for other people from time to time.
haha at least they let you do that. I have been told to quit sending them to other people because they thought I was upvoting myself?