I am wondering what are the positive effects of riding bareback?

It's great for balance and feel. If you're a good bareback rider you're good in the saddle. Personally, I think all riders should start bareback and only add a saddle once sufficient.
To me, it is not recommended as the weight of the rider is not spread evenly and it can create compression points on the horse's back.
The best advantage to me is that the horse's back is not stuck under a saddle (which is not adapted to his back in many cases unfortunately).
And as T. a. Eyo said, it helps you to handle your balance in walk, trot or canter.
Mainly helps a rider learn to balance and relax through the hips
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