Why is the price of BRC20 token consistently rising?

What is driving the constant increase in the value of BRC20 token?

Author: inpower Wang Jun; Source: Crypto Market Observation

These days, the inscription market is very hot, with people getting on and off the train.

Even many senior leaders in the crypto circle are confused~

This article will explain the logic of inscription and shed light on it.

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Many people compare the current inscription market to the dogecoin of two years ago.

I admit that inscription does not have much utility value, but it does not mean that it has no value.

01 Who is pushing for inscription?

To put it directly, it’s the major miners.

Especially the mine owners listed on the U.S. stock market.

A decade ago, the narrative of Bitcoin was a decentralized payment system.

In the past decade, the narrative of Bitcoin has been digital gold, a hedge against inflation.

But as the Bitcoin mining rate gradually halves, the miners, who used to hold an important position in the Bitcoin ecosystem, are becoming less influential in the ecosystem.

The narrative being instilled on Wall Street now is:

The Bitcoin ecosystem is an important blockchain settlement layer, and miners are the settlement infrastructure!

It is worth noting that in the past few years, over half of all bitcoins have stayed in wallet addresses without moving.

No transaction settlement whatsoever~

If the revenue of the mine relies solely on the appreciation of Bitcoin, how will Wall Street investors evaluate the valuation of Bitcoin mines? Based on multiples, such as PE/PS/PB?

Therefore, the mine must drive the transactions in the Bitcoin ecosystem.

It is worth noting that even though the inscription ecosystem is booming and transaction fees are so expensive, transactions only account for 25% of mine owners’ revenue.

If mine owners cannot establish the Bitcoin ecosystem, the narrative of the entire mining industry will be affected.

02 The driving force of self-interest is a good thing

Don’t think that it’s a bad thing when business interests are involved.

Only idiots who don’t understand business would think this way.

Once something involves industry interests, it usually lasts longer.

For example, the diamond market led by Jewish people lasted for hundreds of years until recently when people from Henan Province, China, started making synthetic diamonds at very low prices, and now it is starting to decline.

So, in order to protect the interests of major miners listed on the U.S. stock market, inscription will not just be a passing trend.

It will involve major developments in the industry in the long term.

For those familiar with the crypto circle, apart from mining and exchanges, there is basically no serious business running.

Even the Ethereum ecosystem is in this sorry state, can the Bitcoin ecosystem achieve short-term success?

So we can only rely on the donations from the mine owners to support it.

This logic is actually the same as Coca-Cola’s brand advertising.

You see, if the narrative isn’t established, if there’s half as much PS (production supply), then the mining of listed mining companies in a year would be in vain.

What is the scale of the inscription market now? It doesn’t even have the market cap of a listed mining company like MARA/Riot.

03 Maintaining the interests of mine owners is crucial

A few days ago, there was a development guru dissing the inscription.

From a technical perspective, what he said is not wrong, the inscription does indeed cause network congestion in the Bitcoin network.

But you all need to know, the Bitcoin mining industry is really tough right now, most of the mining farms are not profitable.

With the Bitcoin halving, the competition will only get fiercer.

What will happen if the new ecosystem is not built?

Will small mine owners gradually go out of business, while big mine owners get even bigger?

That’s just centralization in disguise!

If a few major mining farms control more than half of the mining power, Bitcoin becomes a centralized asset.

So I believe that the participants in the Bitcoin ecosystem understand the essence of this problem, and before other ecosystems are built, we can only rely on the inscription.

04 Can we buy inscriptions from other chains?

When Bitcoin miners are working hard on building the ecosystem.

Other main chains are also launching their own inscriptions.

The most fundamental difference between these inscriptions and BRC20 inscriptions is:

Only BRC20 inscriptions are related to the interests of mine owners!

They will maintain industry order and achieve long-term development.

Other main chains without listed mining companies, because they have no interest parties to restrict them, are essentially the same as dogecoin.

Recently, I’ve been swamped, so this article has fewer pictures, please understand.

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