An Objective Look At The Bidbots Market

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Quite recently, I got to know of bidbots, where you pay a token for a presumed higher upvote.
Seeing as I am relatively a newbie, the first thing that came to mind was

Here's an opportunity you've got to seize!

So I paid for some upvotes.
Imagine my confusion when the upvotes I got seemed to actually constitute a loss for me.
Believing there had to be a simple explanation for this which I just had not seen yet, I delved deeper and started going through posts talking about these bots.
What I found out was interesting, if not shocking.Let me explain

I had a post which was worth about $4. I pumped approximately 9SBD into upvote bots and by the time all was said and done, its value went up to $25. To me this was a loss of epic proportions until I checked the estimated post payout.
Half of the payout was in SBD,meaning I had 12.5SBD and the other half was in Steempower. What I found funny is the fact that the steemit blockchain still calculates the payout as if 1SBD is worth $1 whereas its value at that time was a little above $5. In addition to this, it took the value of steem at its current value and 1STEEM is almost synonymous with 1STEEMPOWER. At that time, the value of STEEM was a little above $4 so the remaining $12.5 translated into 3STEEMPOWER or thereabouts. Whereas 1SBD translates into more than 1SP at the moment.Meaning had that $12.5 been in SBD, I could have gotten close to 14SP for it,yet I have to content myself with 3.
This is a disparity which could actually be in our favour as we stand a chance of earning even more than what's stated as payout provided the price of the SBD is above $1.

Back To My Upvote Adventure

Once I had this knowledge, I earnestly began searching for bidbots with which to upvote my posts.
And that's how I got to know of yabapmatt@yabapmatt who has a wonderful website https://steembottracker.com that keeps track of a considerable number of these bots. It also comes equipped with steemcnnect so you can bid for upvotes from bots using the site. And here my eyes got opened to what really goes on when you buy an upvote.
That's the main reason for this post

Listed beside each bot are details ahowing the vote value, minimum and maximum bid values, value of bids, maximum post age and stuff like that.
One other thing listed there is the returns on investment(ROI) and a lot of people either don't pay attention to this or have not yet figured what it means yet. I want to shed a little light on how it works.

Most upvote bots upvote posts once every 2.4hours. Within that time period, anyone who places a bid gets a share of that vote. But the snag there is too many people bid most of the time. Let me give an instance.
For the sake of anonymity and objectivity, I have cropped out the bot details.

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That bot's 100% upvote is worth $5.13 and regardless of how many people bidded or how much the total bid value is, it is going to distribute an upvote worth $5.13 among all the bids, depending on the worth of each bid. And that's not taking into consideration the fact that 25% of that amount is going to curation. So what that bot is effectively offering is 75% which amounts to $3.8475. But as can be seen in that picture, different users contributed to a total bid value of $4.93 which is higher than the effective value of that bot's upvote. Which is why all those who placed a bid for that bot during that round are actually going to lose 21.9% of their bid. THAT'S SAD!
As it turns out, this is not a standalone instance but is quite common among these bots.

Below are screenshots taken within a 5-minute period of randomly chosen bots

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IMG_20180221_225936_328.jpg

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IMG_20180221_225757_888.jpg

IMG_20180221_225757_888.jpg

IMG_20180221_225739_069.jpg

IMG_20180221_225708_064.jpg

IMG_20180221_225644_325.jpg

IMG_20180221_225617_627.jpg

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It is quite safe to say that a lot of bids being placed are actually making their owners run into losses. And the idea behind buying an upvote is to make profit. What an irony! Most of the time, the bots are the ones usually making the profits while the bidders deal with the losses.

But a lot of people making use of these bots are not aware of this, either due to the fact that they don't check on the details of the round they bid on after it has closed, or they sent their bids and links directly from their wallets without using the yabapmatt@yabapmatt site. I too have been a victim of this ignorance which is why I am writing this post to ensure others do not end up losing money in bids.

Just Before I Sign Out

I have a suggestion to make

I believe the primary aim of those running these upvote bots was to provide a way for users to get profitable upvotes for their posts and minnowbooster@minnowbooster is one account I know ia definitely building this legacy. To others out there, I believe a limit should be put in place to prevent the bids going above a certain amount, as this would guarantee that bids never run into losses and also ensure that the quota is always filled. If you can give bidders the assurance that there is always going to be a profit margin for them, there will be no fear in placing as much bids as they can afford.
So my suggestion goes out to yabapmatt@yabapmatt and all who have a stake in the bidbots industry. While I feel you guys are attempting something great, it would be wonderful if there is a limit on the amount of bids that can be placed for each bidding round, because right now, with no limits there, it is looking more like as if I as well as others are being milked dry.
I even had a mind to buy delegated SP and go into the bidbot gig with the amount of profit I could see some bots generating but I'm nowhere close to being that financially buoyant yet.

Thanks for taking the time to read this and I do hope I managed to pass across my message. !
An Objective Look At The Bidbots Market | Ecency