In this article, you will understand which 7 Bitcoin NFT Myths are debunked.
What is Bitcoin NFT?
To begin with, NFTs are most widely known as Ethereum-based tokens. But lately, the buzz is all about Bitcoin NFT. Which is also known as Ordinal NFT or Bitcoin NFT to put it simply.
Just when you thought nothing much was happening in the crypto sphere, bitcoin — the original crypto — surprised the world with Bitcoin NFTs or Ordinals.
While bitcoin NFTs are very different from those we are used to encountering, on the likes of Ethereum and Solana, they have added a new (and controversial) dimension to the original blockchain.
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When did we get Bitcoin NFT?
Well, in January 2023, a dev named Rodamor implemented the original protocol after the taproot implementation in 2022 to put it simply.
Further, this enables Devs to inscribe or put images or other digital files on the satoshis in Bitcoin.
Further, the introduction of something called inscriptions on the Bitcoin main net in January 2023 enabled the creation of Ordinal NFTs, which are basically NFTs on Bitcoin.
Additionally, this enabled the creation of large on-chain NFTs on Bitcoin.
The novel project has captured the collective mindshare of both NFT lovers and haters.
Bitcoin NFT – A clear Upgrade to the Immutability of NFTs.
Firstly, inscriptions are always immutable; the art, text, or whatever inscribed data is put directly on the blockchain.
Further, this differs from most other types of NFTs that tend to store the actual JPG or text file somewhere else and then put a link to that data on the blockchain.
Whether you care about NFTs or not, this is a clear upgrade to the immutability of NFTs.
Read More Bitcoin Ordinals NFT- 8 Amazing Marketplaces
7 Myths of Bitcoin NFTs
Myth 1
Firstly, we already have Ethereum NFTs, it is stupid to care about inscriptions.
Truth
Chiefly, Ordinals and Inscriptions boast an elegant and straightforward design, and Ethereum currently offers more advanced tooling options.
Myth 2
Inscriptions are the first NFTs on Bitcoin.
Truth
Op_return enabled the first collectibles and NFTs on Bitcoin.
Myth 3
Inscriptions are the first on-chain visual NFTs on Bitcoin.
Truth
OLGA is the first on-chain visual NFT on Bitcoin from 2015 created by jp_ianssen
Myth 4
Ordinals are Images.
Truth
Ordinals are ordered satoshis (1/100 millionth of a BTC). inscriptions are the images inscribed over ordinals.
Myth 5
Ordinals have no use case, they are garbage.
Truth
Ordinals enable an elegant, cheap, and 100% on-chain way to own & collect NFTs on Bitcoin.
Myth 6
Inscriptions are the future of NFTs, not ETH.
Truth
While having a simpler, less risky design, I don’t think they can replace the world of possibilities that smart contract NFTs enable.
Myth 7
There is no use case, it’s a scam.
Truth
Scams definitely exist, especially in hype-ridden areas of the NFT space. Further, that does not mean the use case does not actually exist.
Bitcoin NFT – NFTs on Bitcoin? (Full Guide)
How it is possible?
Firstly, in Nov.2021, the Bitcoin network implemented a taproot upgrade to improve the platform’s privacy & performance but it also opened up new possibilities.
Rise of BTC NFTs
Finally, it allowed developers o store images in transaction data. So an engineer named Rodamor found a way to put data in each satoshi., allowing the creation of “ORDINALS”.
How does it work?
Firstly, each Bitcoin contains 100,000,000 Sats, and each sat has consisted of individual identities. So now node operators can write images/ vid etc. on these sats & transfer them as NFTs.
Additionally, 21 million Bitcoin can store 21 quadrillion Ordinals (NFTs) on-chain.
ORDINAL Features
Complete
(All the data is stored on the BTC network)
Immutable
(can’t be changed)
Permissionless
(can be created and transferred without anyone’s permission)
ORDINAL Stats
90,000 NFT inscriptions done on the BTC network.
Bitcoin Punks are 10,000 of the first 34,400 ordinal inscriptions.
The first very collection – @ordrocks
Better than ETH NFTs?
Firstly, the Ordinals are like NFTs, but they are better because they store images on the Bitcoin network. Essentially, not on a central server as Ethereum NFT does, so how to buy it?
How to Buy?
Chiefly, minting, Inscribing, or sending an Ordinal is not for everyone. Further, you have to run a full Bitcoin node, need a dedicated ordinal wallet, fees in BTC & some technical knowledge.
Bitcoin NFTs Controversy
Firstly, the new Ordinals protocol has raised an important question and sparked a heated debate among the NFT community.
Should Bitcoin just be money, or should it expand its functionality to other use cases? Is the Ordinals protocol an attack on the Bitcoin network?
Secondly, the Bitcoin blockchain has traditionally been used only for payment transactions due to its limited block size and network architecture.
Thirdly, such infrastructure favors solutions built on top of the blockchain as additional layers to increase the network’s programmability and scalability.
Further, the latest Ordinals craze has raised many eyebrows among the BTC community.
Some are concerned it could distract from Bitcoin’s primary use case as a medium of exchange. And whether Ordinals make good use of block space.
Ordinals can be images, audio clips, or even games inevitably requiring space that is subtracted from the financial data. Thereby, significantly slowing down on-chain confirmation times.
Bitcoin’s fungibility
Firstly, Bitcoin’s fungibility is one of the main properties of money, plus it is also challenged by Ordinals.
Essentially, because inscriptions are imprinted in one satoshi, making it a rare unit, just like numismatic coins are rare physical objects used for collections.
Secondly, Ordinal satoshis become individual identities that can be tracked, transferred, and imbued with meaningful information.
For instance, text or an image, making the sat unique and turning it into a traditional stance views all satoshis as equal or they begin to lose a significant trait of money.
Improving Bitcoin NFT infrastructure sets the stage for ecosystem growth
Firstly, Bitcoin NFTs, also known as Ordinals, began with much fanfare in late January as they enhanced the utility and revenue of the Bitcoin blockchain.
Secondly, the Dunes dashboard from data analyst digital _assets shows that the Ordinals inscription activity remains robust, with nearly 580,000 NFTs inscribed in less than three months.
Surprisingly, the daily inscription activity is vigorous, but the trading volume of Bitcoin NFTs is still muted.
Additionally, Stacks (STX) surges as Bitcoin NFT hype grows, but its blockchain activity raises concern.
Read More Bitcoin Blockchain – How Many Amazing NFTs are there on Bitcoin Blockchain?
Conclusion
Lastly, the debate will unfold in the future as the Ordinals market takes a more robust shape and new opportunities arise.
Ultimately, Bitcoin’s true spirit and value reside in its resilience to guide the market in the direction the people want.
Most importantly, Bitcoin NFTs are much less consequential than Bitcoin’s best use case of peer-to-peer, borderless, censorship-resistant money.
To conclude, buying Ordinals NFTs is a risky and challenging process due to the lack of a central marketplace.
Firstly, buyers must be extremely cautious and vigilant when dealing with potential sellers to avoid scams and fraud.
Bitcoin NFTs will be at its very best a means to strengthen the Bitcoin transaction fee market and at worst a spectacular fad that fades away with no wider negative consequences for Bitcoin.
It will at the very least be interesting to see where this takes us.
Please do your homework before buying a Bitcoin NFT.
FAQs
Can you buy NFT using Bitcoin?
To begin with, to purchase an NFT, you will need to visit an NFT marketplace. Some marketplaces, like Nifty Gateway, accept credit cards for NFT payments, but many require crypto to make a purchase to put it simply. Further, you will need a crypto wallet to get started buying NFTs.
How are NFTs related to Bitcoin?
Firstly, these non-fungible tokens, or NFTs, are collectible game characters with randomly assigned attributes that make each CryptoKitty more or less rare. Additionally, using the native digital signature scheme on the blockchain, it is easy to verify the authenticity of each CryptoKitty, its unique attributes, and its owner.
What is the value of NFT in Bitcoin?
1 NFT = 0.02077 USD approx.
Is NFT better than Bitcoin?
While comparing cryptocurrencies vs NFTs, the former is often lauded for its volatility to put simply. Although some see this volatility as a positive point, others see it as a major negative point. Chiefly, NFTs on the other hand, tend to be much more stable because they are not subject to the same market forces that cryptocurrencies are simply.
What are your thoughts on the inscription trend? Share your thoughts about this subject in the comments section below.
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