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There is no simple answer if rewards are generally good or bad because they can be both! There are many studies on the effects of external rewards and depending on what kind of rewards are given, determines whether they have a positive influence on a student's success and motivation or negative influences.
"Thus, teaching strategies that use rewards to capture and stimulate interest in a topic (rather than to drive compliance), that provide the student with encouragement (rather than reprimands), and that are perceived to guide student progress (rather than just monitor student progress) can foster feelings of autonomy, competence, and academic achievement" (e.g., Vansteenkist et al., 2004).
KEY IDEA: ".. in some circumstances external rewards such as praise or prizes can help to encourage engagement and persistence, and they may not harm intrinsic motivation over the long term, provided that the extrinsic reward does not undermine the individual’s sense of autonomy and control over her behavior." (How People Learn 2018).
Based on Mueller and Dweck's 1998 studies as listed in the text and more in detail in this video:
Praising students for ability = more likely to adopt performance goals
Praising students for effort = more likely to adopt mastery goals
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