TL;DR
- Popularity of Bitcoin Ordinals: These NFT-like features on the Bitcoin blockchain have gained significant attention, marked by over 46 million inscriptions and high transaction fees, indicating growing interest.
- Influence on Bitcoin’s Value: BTC Ordinals could positively impact Bitcoin’s value through innovation, attracting new users, and diversifying Bitcoin’s use cases.
- Advantages and Challenges: While BTC Ordinals offer probable market expansion, they also pose risks like increased blockchain size, higher fees, and potential diversion from Bitcoin’s core purpose.
Could Bitcoin Ordinals Contribute to a BTC Bull Run?
Bitcoin Ordinals – the equivalent of non-fungible tokens (NFTs) in the BTC blockchain – have once again captured the crypto community’s attention.
The number of Ordinals Inscriptions exploded in mid-November. Moreover, BTC fees surpassed Ethereum at one point last month, reflecting the hype surrounding the protocol. The current number of Ordinals inscriptions stands at above 46 million.
That said, it is worth observing whether BTC Ordinals could play a role in a potential bull run for the leading cryptocurrency in the future. ChatGPT claimed that Ordinals represent a “significant development” in the asset’s ecosystem, naming five main factors to keep an eye on.
Innovation and interest were labeled as the most important. The AI-powered language model maintained that BTC Ordinals enable a new way to utilize the Bitcoin blockchain, “effectively creating digital artifacts.”
NFT-like dynamics follow next on the list. Recall that non-fungible tokens were a hit during the 2021 cryptocurrency bull run.
ChatGPT also estimated that BTC Ordinals could attract more people into the ecosystem, which in turn could lead to increased transaction volumes and more attention toward Bitcoin, “potentially impacting its price positively.”
Market sentiment and diversification are the last aspects worth exploring. BTC Ordinals can diversify the use cases of the largest crypto asset, which might bring a new investor class and possibly bolster the valuation.
Pros and Cons of BTC Ordinals
In addition, ChatGPT touched upon the positive and negative aspects of BTC Ordinals. Innovating the ecosystem, attracting new users, broadening the utility of Bitcoin’s network, and the potential for new markets and economic activity were mentioned as the main pros.
On the other hand, BTC Ordinals could propel too many inscriptions and thus increase the size of the Bitcoin blockchain. This could cause issues with storage and particularly affect those users running full nodes.
The popularity of Ordinals might also drive transaction fees up, trigger network congestion, or attract people to inscribe frivolous content. Some may also argue that BTC ordinals could distract Bitcoin from its main purpose of serving as a store of value and a decentralized digital currency.
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