The moment apps looking for delegation can offer a better return on...

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 :)