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Should blog posts be linked on the home page or is it sufficient to have a /blog page with all the links on it?
I know the home page generally has the largest page authority so I was wondering whether this would be the best approach or merely keep it to one page/feed?
Would Google recognize the dynamic nature of the home page as a benefit to its searches?
There is very little to no direct SEO benefit. As other have alluded to in the comments, it's more of a UX consideration.
Assuming you have a direct path from your home page to the blog entries (example.com -> example.com/blog/ -> example.com/blog/sample-post) which will likely exist in the navigation, search engines should be able to crawl and index these posts just fine, noting where they are in the site hierarchy. You can link to these posts from other pages on your site, such as your home page or other deep content pages, but we're talking internal links rather than inbound, so at any rate they carry far less value.
Furthermore, the URL that the crawler will follow to your blog page will still be example.com/blog/sample-post. (If it's different than the canonical URL, there's a problem.) It will thus still see the same hierarchy, and most likely treat it the same. However, if the dynamic nature of the home page is a benefit to the users, it's still a win.
If you mean SEO benefits in terms of crawl rate or faster index, then yes it's benefit, because Google crawl your homepage often, because you've link to it from many places like header, navigation or bottom.
But there is no any ranking benefits for permanent, once those links are goes to other page like page 2 then it will get very less juicyrank(PageRank), so it is not permanent benefits, but sometimes temporary benefits helps you, when those blog post are about new trends.
So dynamic nature is answer in itself. Google give value to your latest post and when they disappear from your homepage, then it will give less important to those links. And re-calculate PR again to give more importance to your new links.
So PR is calculate every time when Googlebot crawl your pages. When any pages drop some links then Google cut their aid to those links. It's that simple to understand. Google does not care it's homepage or not, it's pure maths.
