The Impact of Bitcoin NFTs Movement on Its Blockchain Ecosystem

• The Creator of NFT Protocol said Bitcoin will be fine with Monkey and JPEGs.
• The popularity of Bitcoin NFTs would positively impact the Bitcoin ecosystem. 
• This attracts developers to the ecosystem, as an Ordinals proponent Udi Wertheimer said in an interview.

According to a Bloomberg report, “some hard-core Bitcoiners are in an uproar on the prospect of ubiquitous internet memes like pixelated cats and smoking monkeys clogging up the blockchain.” Casey Rodarmor is the creator of the recently introduced NFT protocol called Ordinals that is at the center of the angst, says not to worry.

Rodarmor sees inscriptions, or the newfangled non-fungible tokens, giving the oldest blockchain a fresh use case that can boost its utility.

On the other hand, the detractors argue “they’ll crowd out regular transactions with high fees due to the large amounts of data required to inscribe the digital images, GIFs and representations, undermining Bitcoin’s original mission as a peer-to-peer payment network,” as per the Bloomberg report.

It must be noted that a year ago, Casey Rodarmor first began working on the protocol. While the recently introduced Bitcoin NFTs, risks backlash from purists.

Bictoin NFTs explained by a Dev

In an recent interview of an independent developer Udi Wertheimer, he said that Bitcoin non fungible tokens will positively impact the ecosystem by improving its security and incentivizing developers to build on the network.

In recent weeks, the number of newly created Ordinals has been spiking and it is also causing a surge in transaction fees and average block size on the Bitcoin blockchain. 

According to Wertheimer, Bitcoin NFTs are going to be beneficial for its security budget. By driving up transaction fees, the creation of Ordinals will provide incentive to the miners to secure the network. Also the revenue from mining rewards will decrease with each Bitcoin halving.

During the interview, Wertheimer discussed that “as the block space is scarce and because there’s demand for stuff like inscriptions, there’s a lot of hope that they will get enough people who want to pay fees in order to keep the Bitcoin network secure.”

The dev also noted, Ordinals provide a new use-case to make building on Bitcoin commercially profitable. He states “with all of that interest around Ordinals and inscriptions, he expects that there is going to be a very big ecosystem that is built around that.”

The developer ignores the notion held by some Bitcoin core developers that creating NFTs is not an appropriate use case for Bitcoin. In recent years, “Bitcoin core developers have ignored what actual Bitcoin users want,” he further added.

At press time, the price of Bitcoin is trading at $24,915.12 with a 24-hour trading volume of $32.21 Billion. Bitcoin is up 0.98% in the last 24 hours, with a market cap of $480.78 Billion. Meanwhile the buy signal for Bitcoin price could hint at the start of a new macro bull run.

Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.

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