Elon Musk Finds NFTs Funny While Sees Potential in Bitcoin Ordinals

Non-fungible tokens (NFTs) had wild popularity around 2021 when digital art pieces were at their peak. Celebrities and millionaires were spending to have hands-on experience with them. NFT was a frenzy once but its slowdown came as soon as crypto winter hit. Opinions and thoughts about digital art changed and continue. Recently Elon Musk was seen to mock NFTs but interestingly praised Bitcoin Ordinals.

During a conversation with popular YouTuber Joe Rogan on his podcast The Joe Rogan Experience, the Tesla and SpaceX CEO made fun of NFTs. He said that the NFTs do not even exist on the blockchain and he finds it funny. “It’s just a URL to the JPEG,” he added.

In a recent statement, Tesla and SpaceX CEO Elon Musk emphasized the importance of encoding JPEGs on the blockchain as a means of preserving digital art and collectibles for the long term. Musk’s remarks have ignited a discussion within the crypto community about the longevity and security of NFTs.

Musk’s rationale for this suggestion is straightforward: by embedding the image data directly on the blockchain, it becomes immune to the risk of the hosting company going out of business, which could lead to the loss of the associated digital assets. The CEO’s comments came as a response to the inherent fragility of NFTs when the hosting platform or company is no longer operational.

This idea garnered support from various quarters, with Bitcoin enthusiasts highlighting that Musk’s comments underscored the utility of Bitcoin Ordinals. Bitcoin Ordinals, akin to NFTs, but based on Bitcoin’s blockchain, were introduced in January, thanks to the Taproot soft fork implemented in November 2021.

Community’s Response to Musk’s Comment

Cryptocurrency analyst Will Clemente commended Musk’s stance and noted that there are already 38 Million Ordinals inscriptions that are now permanently etched on Bitcoin’s blockchain. This demonstrates the sustained growth of Ordinals, which addresses a fundamental criticism of traditional NFTs – their long-term security.

Rohun “Frank” Vora, the creator of NFT projects DeGods and y00ts, also chimed in, praising Ordinals as an elegant solution to one of the most universal criticisms of NFTs. The ability to secure digital assets on a blockchain that is well-established and unlikely to go out of operation enhances their durability and permanence.

In a particularly remarkable gesture of support for Musk’s perspective, an Ordinals developer known as “Leonidas” encoded a 19-second video directly into Bitcoin’s blockchain at block 814,773. This action serves as a practical manifestation of the belief in the long-term viability of digital assets stored on the Bitcoin blockchain.

While Elon Musk’s comments have drawn attention to the need for greater resilience in the NFT space, it’s important to note that his criticism isn’t universally applicable. For instance, Larva Labs, the creators of Cryptopunks NFTs, took steps to move their assets on-chain in August 2021 after initially residing off-chain for four years.

This transition aims to ensure the Cryptopunks images and attributes are permanently accessible to anyone with an Ethereum client, reinforcing their long-term survival.

Musk’s advocacy for the encoding of JPEGs on the blockchain highlights a crucial debate in the NFT world, where the balance between convenience and security must be carefully considered to ensure the longevity of digital collectibles in an ever-evolving digital landscape.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing