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Yes, that is definetly true, but not so dangerous as the mining part of Steem is not that influental or important as with other crypto currencies. It would 've been much worse if there were a lot of witness nodes operated the same way as these multiple miners by a single person.

he is getting double bubble as witness and miner, nobody can afford to run servers for a 1 in 1000 chance of getting a doller.

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