I only update some of my blogs. I've had problems with updating a blog with just 1 new post and then a few days later, 70% of my Google traffic will be gone (on some I will gain it all back and a little bit more and on some it won't come back). Then on the other hand, I have a few blogs that I can update and I will only gain traffic.
You pretty much just have to play around with your blogs and find out which ones would be good to update (and benefit you) and which ones you should just leave as is.
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