Will Bitcoin Ordinals Hype Bring NFT Back Into Trend?

Since the crypto winter of 2022, many crypto investors have been wondering if 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. Could this have a large potential upside for the NFT market?

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

So will these Bitcoin Ordinals NFTS attract more NFT buyers in 2023? It remains to be seen, but many experts believe that the potential upside is significant enough to see them become increasingly popular over the coming years. With more people buying into this new asset class, demand may 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 caught the attention of Web3 developers. Several NFT projects have already been inspired by it CryptoPunksfounded on Ethereum technology.

Before understanding Ordinals, it is important to note that they are far more intricate than the standard NFT. In fact, minting an Ordinal is even more complicated. The average buyer may find these complex processes difficult to deal with and become involved in, although this is likely to change as time goes on.

Also, each Satoshi is linked by an Ordinal, so people have reported spending multiple Bitcoins for a single Satoshi!

Although projects like Crypto Punks and Bored Ape Yacht Club on the Ethereum blockchain are in demand due to their rarity, the principles behind Bitcoin differ from each other. Rather than scarcity driving their value, Ordinals’ value remains tied to how they were issued – much like Bitcoin.

Undoubtedly, among the first 10,000 ordinals entered, some will be precious and sought after. In addition, Ordinals impressed in the early stages of inscription can also be very valuable over time.

Bitcoin is unique to other blockchains because it is the first working model of a decentralized blockchain. Perhaps some of the most valuable Ordinals will involve Satoshis distributed during a Bitcoin halving, large round block numbers, or when BTC’s price finally reaches $100k. In addition, there are certainly those linked to Satoshi Nakamoto himself that can also be highly sought after.

What is the buzz around Bitcoin Ordinals?

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

The Ordinal Punks series is not an exact copy of CryptoPunk’s originals, as it was created with an open source algorithm and CC0 sprite sheets. This detail has been confirmed by Decrypt after speaking to someone with knowledge of the project.

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

However, since Ordinals is a relatively new platform with distinct flows from other NFT’s platforms, there is insufficient infrastructure to sustain the buying and trading of the assets. As a result, these transactions are currently done over-the-counter (OTC) or, in some cases, covertly, which can make them vulnerable to fraud.

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

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

An example is the project OnChain Monkey. OnChain Monkey announced a project involving 10,000 Ethereum PFP NFTs overwritten with Bitcoin using the Ordinals protocol.

This news caused the prices of these Ethereum-based NFTs to skyrocket, with the cheapest listed commodity 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 launching in 2017, CryptoPunks by Larva Labs has brought over $2.5 billion to the Ethereum-based crowdfunding industry. It will remain unsurpassed as the most remarkable and historic project in this space. Overall, the Ordinals concept is exciting, but it needs further refinement to see its mainstream adoption.

So which NFT Blockchain to invest in?

Ordinal NFTs, like Ordinal Punks, gain value due to their position as the “first” project to run on the protocol. In addition, these collections usually have a small supply of goods; 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.

Potential buyers of these assets should be aware that they remain fundamentally speculative investments. Newer initiatives with more utility, appealing stories or eye-catching artwork can replace nascent projects.

The Ordinals protocol has the potential to empower a number of projects and become a status symbol for collectors if it continues on its positive trajectory. Like CryptoPunks, these early adopter items can quickly achieve significant value over time. Despite this, most inscriptions are likely to follow power-law dynamics regarding their worthlessness and eventually decline toward zero.

Whether more investors will start buying into these types of NFTs in 2023 remains to be seen.

If you’re looking to buy bitcoin in 2023, Bitcoin Ordinal’s NFTS is definitely worth considering. The potential benefits can be huge, and you’ll also benefit from being able to track investment results more quickly.

However, with today’s Bitcoin prices, it appears that Ordinals are already having a significant effect on the value of BTC. As developers continue to explore and create new projects, this can only increase over time. So for now, we can only wait and see what happens next.

Also read: Bitcoin Price Prediction 2023: Will Prices Rise or Fall?