Investment Firm Grayscale Sees Benefits for BTC in Bitcoin Ordinals
Bitcoin Ordinals have caused controversy in the bitcoin community and become a hot topic, with some strictly rejecting them and others welcoming them. However, investment firm Grayscale argues that Bitcoin Ordinals can be beneficial to BTC for two main reasons.
Cryptocurrency investment company Grayscale claims that Bitcoin Ordinals, which are often referred to as Bitcoin NFTs, could renew the enthusiasm of Bitcoin developers and increase mining fees. This follows an April 27 post from the company on the "Market Byte" blog, in which it suggested that Bitcoin Ordinals have two key aspects that could benefit the development of the bitcoin ecosystem.
The first of these, according to the company, is a large increase in the fees paid to miners, which has been seen since the Ordinals protocol was launched in January.
"The advent of Ordinals has led to an increase in the overall fees paid, which could potentially lead to a sustainable baseline of transaction fees that would incentivise miners, thereby ensuring the continued security of the network for the lifetime of the Bitcoin network," the company said in the report.
Data from analytics portal Dune shows that in less than two months since the launch of Bitcoin Ordinals, over 600,000 USD has been paid out to Bitcoin miners, largely due to fees generated by Ordinals listings. At the time of writing, that amount has already grown to over 6.5 million USD.
The second way in which Ordinals can positively impact Bitcoin is, according to Grayscale, the "adoption rate of NFTs," which could bring in new Bitcoin users and encourage further development of the network.
"We believe the emergence of Ordinals is likely to foster a community and culture focused on developing and supporting the Bitcoin network," the investment firm said.
Bitcoin Ordinals set a new record on April 30, when the number of daily signups surpassed the 300,000 mark. According to data from IntoTheBlock, at around the same time, the number of bitcoin transactions recorded was close to an all-time high, which hasn't happened in several years.
However, the Bitcoin community has been addressing the topic of Ordinals, with BTC maximalists heavily criticizing them. They claim that they deviate from the core meaning of Bitcoin as a Peer-2-Peer digital currency, and that they take up valuable block space. One of the critics of the Ordinals, Adam Back, CEO of Blockstream, said that Bitcoin Ordinals are "unnecessary" and that he is "more in favor of Bitcoin as a currency."
Source: grayscale.com
analyst opinion
Jakub Odvářka
Cryptocurrency investment company Grayscale claims that Bitcoin Ordinals, which are often referred to as Bitcoin NFTs, could renew the enthusiasm of Bitcoin developers and increase mining fees. This follows an April 27 post from the company on the "Market Byte" blog, in which it suggested that Bitcoin Ordinals have two key aspects that could benefit the development of the bitcoin ecosystem.
The first of these, according to the company, is a large increase in the fees paid to miners, which has been seen since the Ordinals protocol was launched in January.
"The advent of Ordinals has led to an increase in the overall fees paid, which could potentially lead to a sustainable baseline of transaction fees that would incentivise miners, thereby ensuring the continued security of the network for the lifetime of the Bitcoin network," the company said in the report.
Data from analytics portal Dune shows that in less than two months since the launch of Bitcoin Ordinals, over 600,000 USD has been paid out to Bitcoin miners, largely due to fees generated by Ordinals listings. At the time of writing, that amount has already grown to over 6.5 million USD.
The second way in which Ordinals can positively impact Bitcoin is, according to Grayscale, the "adoption rate of NFTs," which could bring in new Bitcoin users and encourage further development of the network.
"We believe the emergence of Ordinals is likely to foster a community and culture focused on developing and supporting the Bitcoin network," the investment firm said.
Bitcoin Ordinals set a new record on April 30, when the number of daily signups surpassed the 300,000 mark. According to data from IntoTheBlock, at around the same time, the number of bitcoin transactions recorded was close to an all-time high, which hasn't happened in several years.
However, the Bitcoin community has been addressing the topic of Ordinals, with BTC maximalists heavily criticizing them. They claim that they deviate from the core meaning of Bitcoin as a Peer-2-Peer digital currency, and that they take up valuable block space. One of the critics of the Ordinals, Adam Back, CEO of Blockstream, said that Bitcoin Ordinals are "unnecessary" and that he is "more in favor of Bitcoin as a currency."
Source: grayscale.com
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