Are Bitcoin Ordinals The Next Big Thing?
During the last two years; the hype in the cryptocurrency market has been centered around smart-contract blockchains. How they are the most technically advanced projects in the market and how they allow you to do so many different things. One of the key selling points for these blockchains has been the ability to earn with them. Some of the most earning methods have been through staking and DeFi; things that aren’t possible on Bitcoin. One of the other most hyped features has been NFTs; something that completely took over the market and even went mainstream.
Until this year, this was also something that wasn’t being done on Bitcoin. The people who were into yields or de0genning into NFTs viewed Bitcoin as ancient tech. A place where nothing was happening and development was moving at a snail’s pace.
Then a few weeks ago, Ordinals, better known as NFTs on Bitcoin began appearing and they quickly became the talk of the market. Even catching the attention of those who had previously shunned Bitcoin. Suddenly, if you were after yield or profits; Bitcoin was the place to be. People began rushing back toward Bitcoin.
There have long been theories that whatever is built on other blockchains, will eventually make its way back to Bitcoin. We are beginning to see the migration.
Why are they important?
If there are NFTs on other blockchains that have seen success, why is it such a big deal that they are now on Bitcoin?
The answer to that is simple. It’s because they are now on Bitcoin. It is the original cryptocurrency and is responsible for creating this whole market. For example, let’s imagine we have the option between two beachfront houses. One of them is great but is located in Ireland. While the second beachfront house is located on a pristine beach in Hawaii. Bitcoin is Hawaii in this example.
It’s the most trusted, decentralized, and secure blockchain. It also has a rock-solid issuance and inflation rate. Simply put; Bitcoin is the king of all cryptocurrencies. Everything including Ordinals will become more valuable on Bitcoin. Resulting in the demand increasing, thus the price goes up even further.
How are they different?
The first thing you must know is that Ordinals are much more complex than your average NFT. They are harder to inscribe (mint), which means initially it will be more difficult for the average buyer to join in. That will change as time goes on. Ordinals are connected to a specific Satoshi. This is why you might have heard headlines about people paying several Bitcoins for a single Satoshi.
While NFT projects on other blockchains such as crypto punks or BAYC are popular and gain value due to their scarcity. That is not how the ethos in Bitcoin works. Just like Bitcoin, Ordinals value are all about their issuance.
Ordinals that were among the first 10,000 created will likely always be among the most valuable. With the specific project having less importance than other blockchain NFT projects. Likely, Ordinals that are inscribed to certain important Bitcoin milestones will also become valuable. Perhaps Satoshis that were issued during the Bitcoin halving, or large round block numbers, or when BTC’s price eventually reaches $100k. Perhaps some of the most valuable Ordinals would be those that were linked to Bitcoin’s creator himself, Satoshi Nakamoto. The list goes on and on. The difference between Bitcoin and other blockchains; is that Bitcoin is all about the issuance.
The Bigger Importance
It appears that the mood and feeling around Bitcoin are finally changing, and Ordinals could be the direct cause of this. For quite a while now, development, experimenting, and building on Bitcoin have largely been shunned by some of the biggest Bitcoin maximalists. The community became too conservative and worried about disrupting or breaking something that had become worth a significant amount of money.
But finally, it seems that Bitcoin could be returning to its roots. Newer people may not know this, but in the past Bitcoin was where all of the new development was happening. Perhaps we could be returning to that. One thing is certain, the Bitcoin ecosystem already seems like a more vibrant and exciting place. An underrated aspect of this whole Ordinal situation is that this could be the fix that cures payments for miners after the Bitcoin halving has lowered the issuance rate to nearly zero.
How about you? Do you think Bitcoin Ordinals are the next big thing?
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