Musk wins again! Invest in Bitcoin inscription Ordi and earn 10 times! Will BRC-20 lead the new wave of crazy wealth?
Musk Emerges Victorious Once More! Invest in Bitcoin on Inscription Ordi and Multiply Your Earnings Tenfold. Is BRC-20 the Key to Riding the Next Insane Wave of Wealth?Author: Bit Bai Cai
Editor: Pony
Musk is on a winning streak. The newly launched Cybertruck has sparked market discussions and purchases. But does anyone still remember on October 31st when Musk publicly expressed optimism about Ordinanls Inscriptions NFT and mentioned BRC-20?
Here’s the article link:
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https://mp.weixin.qq.com/s/XLwjgbs_tDK8l2cuSAWOcg
Over a month has passed, back then, ordi was only $5.07. But on December 5th, the price has soared to $54. If Musk really bought 20,000 ordi at that time, he would have made a 10x profit!
The boss really has an eye for things, quietly making moves and stunning everyone!
Video link (https://urll.ink/MJFF5s)
In an interview, Musk said: Traditional NFTs are simply a URL, and the image itself is not stored on the chain. If the company or project behind it changes the URL or stops the service, it might disappear.
So ordinals and a series of inscriptions on Bitcoin, Ethereum, including both ordinary images and chain-based recursive images, are fully stored on the blockchain, making them true NFTs that are easily verifiable!
As Musk said, the inscriptions are indeed stored on the chain, which is one of its major advantages, avoiding ownership disputes.
The Bitcoin Ordinals Protocol is a method of writing data to various Satoshis on the Bitcoin network. Although it was originally used to mint images as NFTs, users started to realize that they could use text-based inscriptions to create fungible tokens, similar to the way ERC-20 tokens are minted on the Ethereum network.
BRC-20 is an experimental fungible token standard that uses sequential inscriptions on the Bitcoin network, but unlike the Ethereum ERC-20, BRC-20 tokens do not use smart contracts. It deploys, mints, and transfers tokens using ordinal inscriptions in JSON data.
This innovation meets the demand for fungible tokens on the Bitcoin network and becomes the foundation of inscription prosperity.
In addition, another major advantage of the inscription market is fair launch. Without capital, without VCs, without early insiders, users enter based on consensus, giving everyone the same opportunity. The combined effect of these two factors has led to the explosive growth of the inscription market this year.
However, in the midst of the hot Bitcoin inscription market, we must also recognize its shortcomings.
The primary issue is the lack of institution-driven promotion in the inscription sector, mainly played by Chinese individuals, facing the problem of poor liquidity.
Since 2019, whether it’s mainstream coins like BTC and ETH, or altcoins like SOL and MATIC, there are institutions and VCs driving them from behind.
The recent rise in BTC and ETH is primarily due to major Wall Street asset management institutions applying for spot ETFs. It can be said that without the follow-up of traditional institutions, the future imagination of BTC and ETH would not exist. Without the push from large capital behind it, it’s hard to imagine significant growth.
So, for the inscription market that currently lacks institutional participation, where is its upper and lower limit?
Because inscription projects have low market capitalization, they can experience crazy rises without requiring a large amount of funds at the beginning. However, this is built on the basis of low liquidity.
The main reason for low liquidity is insufficient depth, and the main reason for insufficient depth is the gap in funds. Relying solely on community retail investors for promotion will eventually lead to a situation where early entrants reap profits from latecomers.
Therefore, the inscription market still needs institutions to gradually get involved. Only when institutions come in after the fair launch, can the inscription market go further.
Why do institutions come later instead of earlier?
If institutions enter first, it’s often a trap, just like most projects in the current market.
Institutions will reject retail investors from entering private placements, and then sell to them in the secondary market. All the upward movement is intentional, and there will be massive selling of coins with nearly zero cost. Although the process is similar to companies going public in the stock market, the cryptocurrency market is not as regulated as the stock market, and incidents of institutions and market makers manipulating prices occur frequently.
Only projects recognized by retail investors gain mainstream market acceptance, and then institutions enter after conducting research, just like the development of Bitcoin. Currently, all institutions buy Bitcoin chips from retail investors out of their own pockets in the secondary market. This can largely prevent the situation of first-level harvest and second-level dumping.
I believe Musk also sees this point and plays with decentralization, just like favoring doge and buying low.
On the other hand, BRC-20 has many limitations, including only being able to use four characters as the coin name, inability to upgrade, double spending risk, and inability to cancel transactions, among others. It requires a centralized platform for accounting and indexing, which brings about a significant double spending risk.
Currently, different markets are using different versions of the open-source software ord, each indexing different ciphertext numbers. Before Magic Eden, OKX, and UniSat Wallet started using the same ordinals, there was a double spending risk in BRC-20 transactions.
On April 25th, UniSat Marketplace, a Bitcoin ciphertext market, was launched and suffered a large number of double spending attacks less than a day after its launch, affecting multiple transactions.
In late November, due to indexing issues, Binance held about 5 million more ordi than the total supply (about $100 million), OKX and Bybit used Unisat, while Binance used ordiscan, which could make ordi vulnerable to attack.
The indexing issue has become an unavoidable pain for the ciphertext project. To create a robust market, it should introduce decentralized indexing using blockchain, which can reduce the probability of malicious indexing activities.
Almost all ciphertext systems require a decentralized indexing solution to grow.
The official launch of the Bitcoin Oracle, a Bitcoin prophecy machine, can synchronize and compare current mainstream BRC-20 indexes, greatly increasing the transparency and reliability of BRC-20 indexes. It may become a reference standard answer.
BRC-20 essentially engraves the text data of Ordinals NFT. The hottest BRC-20 tokens in the market, such as ordi, pepe, oshi, meme, nals, are mostly Meme coins, focused on speculation. This Bitcoin innovation is still in the stage of “replicating” the Ethereum ecosystem.
However, the Bitcoin network does not have mature ERC20 standards and smart contract protocols like Ethereum. It has not yet seen on-chain asset operation protocols similar to AMM protocols or aggregation protocols. And even Bitcoin itself is not Turing complete.
At the same time, Bitcoin’s layer-2 network is not as mature and powerful as Ethereum’s layer-2 network. Completely imitating the innovation of the Ethereum ecosystem may not be a feasible path. The ecological development of Bitcoin needs native innovation based on the genetics of Bitcoin itself.
The development of the ciphertext industry has already moved beyond the most difficult exploratory phase. The proliferation of ciphertexts is the trend, and the future has become more certain, with better infrastructure.
Let us be patient and welcome the wave of ciphertext with Elon Musk!
P.S. This article does not constitute investment advice!
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