2 Reasons Bitcoin Ordinals Are Positive For BTC : Grayscale

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Bitcoin ordinals (BTC), also known to some as Bitcoin NFT, could reignite developer enthusiasm for Bitcoin and increase mining fees, according to cryptocurrency investment firm Grayscale.

In an April 27 Market Byte blog post, the company suggested that ordinals provide two key benefits to the growth and development of the Bitcoin ecosystem.

The first is a substantial increase in fees paid to miners, which has been seen since the protocol launched in January, according to Grayscale.

The advent of ordinals has led to an increase in the total royalties paid to miners […] which could potentially establish a sustainable benchmark of transaction fees to incentivize miners.

Grayscale argued that this would ensure “continuous network security throughout the lifetime of the Bitcoin network.

As Cointelegraph reported, less than two months after its launch, more than $600,000 has been paid out to Bitcoin miners, solely from fees generated by ordinal registrations. As of press time, that number is now over the $6.5 million mark.

Fees spent for listing ordinal NFTs on the Bitcoin blockchain. Source: Dune Analysis

The investment firm also believes that ordinals and the speed of adoption of NFT could also attract new Bitcoin users and spark more development on the Bitcoin network.

“We believe the emergence of ordinals is likely to promote a development-oriented community and culture in support of the Bitcoin network.”

On April 30, Ordinals hit a new all-time high, with daily signups surpassing 300,000.

Around the same time, the number of Bitcoin transactions hit multi-year highs, according to blockchain data firm IntoTheBlock.

Related: Magic Eden Launches Bitcoin Ordinal Marketplace

The meteoric rise of ordinals has been a controversial topic in the wider Bitcoin community, having been widely criticized by Bitcoin maximalists for straying from Bitcoin’s original purpose as a peer-to-peer electronic currency. peer and clog valuable block space.

One such critic is Blockstream CEO Adam Back, who made a number of comments in which he said ordinals were useless and claimed he preferred Bitcoin as a currency.

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