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Will Bitcoin Ordinals Hype Bring NFT back in Trend?

Since the Crypto Winter of 2022, many crypto investors have wondered whether investing in Bitcoin Ordinals NFTS will be a good strategy for them. And it’s not hard to see why NFTs are back in the news as the world’s most popular and valuable blockchain, Bitcoin, now supports NFT inscription. Can this have a huge potential upside for the NFT market?

In a nutshell, Bitcoin Ordinals NFTS are digital collectibles that represent a type of financial asset with two powerful features: scarcity and irreversibility. Each NFT has its own unique code, allowing investors to track their investment performance easily.

So will these Bitcoin Ordinals NFTS attract more NFT buyers in 2023? That remains to be seen, but many experts believe the potential upside is significant enough for them to become increasingly popular over the coming years. With more people buying into this new asset class, demand could also increase significantly.

What Are Bitcoin Ordinals?

Ordinals is a revolutionary blockchain protocol that facilitates the minting of NFTs on Bitcoin’s network, and it has recently captured the attention of Web3 developers. Several NFT projects have already been inspired by CryptoPunks, founded on Ethereum technology.

Before you understand Ordinals, it’s important to note that they are far more intricate than your standard NFT. In fact, minting an Ordinal is even more complicated. The average buyer might find these complex processes hard to tackle and get involved with, though this will likely change as time passes. 

Moreover, each Satoshi of an Ordinal is connected, so people have reported spending multiple Bitcoins for a single Satoshi!

Although projects such as Crypto Punks and Bored Ape Yacht Club on the Ethereum blockchain are in demand due to their rarity, the principles behind Bitcoin stand apart. Rather than scarcity driving their worth, Ordinal’s value remains tied to how they were issued – similar to Bitcoin.

Undoubtedly, among the first 10,000 Ordinals that were inscripted, some will be precious and sought after. Additionally, Ordinals minted in the early stages of the inscription could also be highly valuable over time.

Bitcoin is unique to other blockchains because it’s the first working model of a decentralized blockchain. Maybe some of the most valuable Ordinals would involve Satoshis distributed during a Bitcoin halving, large round block numbers, or when BTC’s price eventually reaches $100k. Additionally, there are certainly those connected to Satoshi Nakamoto himself that could be highly sought after too.

What Is The Buzz around Bitcoin Ordinals?

In late January this year, Ordinals were officially released on the Bitcoin blockchain, rapidly inspiring many CryptoPunks-influenced projects – most notably Ordinal Punks.

The Ordinal Punks series is not a precise copy of the CryptoPunks originals, as it was created with an open-source algorithm and CC0 sprite sheet. This detail has been confirmed by Decrypt after speaking to someone knowledgeable about the project.

Ordinal Punk sales have already been incredibly successful, with one single digital collectible being sold for a whopping 9.5 Bitcoins (equivalent to nearly USD 215,000!). Even more impressive was the bundle of seven recently purchased for 15.2 BTC – around USD 349,000 in total.

However, since Ordinals is a relatively new platform with distinct flows from other NFTs platforms, there’s insufficient infrastructure to uphold purchases and trades of the assets. As a result, these transactions are currently being done over-the-counter (OTC) or, in some cases, covertly-, which can leave them prone to scamming.

While there has been a lot of speculation and enthusiasm surrounding the migration of tokens to BTC, some individuals have actually expressed disinterest in it. 

For instance, DeGods founder Frank tweeted about not buying into the FOMO, while others went as far as to criticize its limited ownership diversity. Moreover, some people even claimed that this project is “five years late” and holds no historical value.

One example is the project OnChain Monkey. OnChain Monkey announced a project involving 10,000 Ethereum PFP NFTs inscribed on Bitcoin using the Ordinals protocol. 

This news caused prices for these Ethereum-based NFTs to skyrocket, with the least expensive listed item increasing from 0.79 ETH to 1.75 ETH and settling at around 1.5 ETH (roughly USD 2,500), according to data obtained by Decrypt.

Since its launch in 2017, CryptoPunks by Larva Labs has brought over USD 2.5 billion to the Ethereum-based collection industry. It will remain unrivaled as the most noteworthy and historical project within this space. All in all, the Ordinals concept is exhilarating, yet it needs further refinement to see its mainstream adoption.

So Which NFT Blockchain to Invest In?

Ordinal NFTs, like Ordinal Punks, are gaining value due to their position as the “first” project running on the protocol. Additionally, these collections typically have a low supply of items; for example, there are only 100 Ordinal Punks compared to 10,000 CryptoPunks! 

This relative rarity creates an environment where Bitcoin prices can increase, making the NFT projects a more desirable investment.

Prospective purchasers of these assets should be aware that they are still fundamentally speculative investments. Newer initiatives with more utility, appealing storylines, or eye-catching artwork may supersede nascent projects.

The Ordinals protocol has the potential to bolster numerous projects and become a status symbol for collectors if it continues with its positive trajectory. Like CryptoPunks, these early-adopter items can quickly accrue significant value over time. Despite this, most inscriptions will likely follow power law dynamics regarding their worthlessness and ultimately diminish toward zero.

Whether or not more investors will begin buying into these types of NFTs in 2023 remains to be seen.

If you want to buy bitcoin in 2023, it’s certainly worth considering Bitcoin Ordinals NFTS. The potential rewards could be huge, and you’ll also benefit from being able to track your investment performance more quickly. 

But with the current Bitcoin prices, it seems that Ordinals are already having a considerable effect on the value of BTC. As developers continue to explore and create new projects, this could only increase over time. So, for now, we can only wait and see what happens next.

Also Read: Bitcoin Price Prediction 2023: Will Prices Surge or Slump?

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