In a recent tweet, a renowned Bitcoin analyst with X username “MDB” shared a mixed perspective on the growing trend of Bitcoin ordinal inscriptions, otherwise called NFTs, arguing potential stress test and hash war.
According to MDB, Bitcoin ordinals, which grant users the ability to store extra data into the smallest unit of Bitcoin, “satoshis,” are not leveraging Bitcoin as a medium of exchange. He argued they merely utilize Bitcoin nodes to store images or any intellectual property, leveraging the Bitcoin brand for marketing purposes.
Nonetheless, MDB noted that the free market is the ideal space for such experimentation and that everyone should be allowed to utilize Bitcoin for their needs.
Ordinal + inscriptions are not utilizing Bitcoin as money,
They are simply employing Bitcoin nodes to archive their “images or any intellectual property,” capitalizing on the Bitcoin brand for marketing purposes.
The free market is ideal for this; everyone should be granted the… pic.twitter.com/D7m64pYE9B
— MDB (@MDBitcoin) December 17, 2023
Meanwhile, he sees this trend as a valuable stress test for the Bitcoin network. In particular, he suggested that it could reveal whether integrating NFTs constitutes true innovation or mere exploitation of the Bitcoin brand.
Moreover, MDB expressed that storing intellectual property on the blockchain could lead to new applications and security benefits over time. Specifically, he argued the trend could broaden the user base by increasing awareness of Bitcoin.
In this context, he raised the possibility of a scenario akin to a “hash war,” where more individuals and entities choose to store intellectual property on the blockchain. According to him, it could lead to a deeper exploration of the limits and capabilities of the Bitcoin network.
Also, the analyst echoed his strong opposition to censorship on the Bitcoin network but admitted that ordinals might reveal potential vulnerabilities in this area.
Despite Bitcoin NFTs debuting in late 2022, the blockchain exhibited the highest growth rate in trading volume within the NFT market in November. Coin Edition has reported that Bitcoin NFTs emerged as the most sought-after NFTs during November, surpassing the trading volume for Ethereum NFTs.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
Read the full article here