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Since the bear market: there hasn’t been many interesting NFT innovations to cover. But thankfully: there’s finally a new one!
BTC NFTs are being created directly on-chain and are immutable, using Inscriptions: digital artifacts native to the Bitcoin Blockchain.
BTC NFTs do take a fair amount of manual setup to use, but whenever something is challenging in crypto, there’s the potential of opportunity for traders.
Here's everything you need to know about Bitcoin NFTs (Ordinals) and how to take advantage of this new opportunity:
So yes, big news, Bitcoin NFTs are now real. And no, it's not like the famous nakamoto card that was technically minted on the counterparty blockchain. These NFTs are truly minted on the L1 Bitcoin blockchain.
So, how does it work?
There's that newly launched protocol called "Ordinals" that found a way to inscribing a single satoshi (1 millionth of a Bitcoin) with content using the ord client.
So yes, they take 1 Satoshi and change it forever and create an "Inscription" with it
What's an Inscription?
Inscriptions are Digital Artifacts native to the Bitcoin Blockchain.
Everything is on-chain and immutable on the Bitcoin network.
So yes, they are NFTs.
How can I buy some?
First of all, as anything new, there's a lot of scams going around and people taking advantage of this new market so please be cautious
Another reason why this message is very important is because we are so early that there's not even a marketplace for Inscriptions (Bitcoin NFTs), everything is trusted-OTC right now - you trust a third party to make the transaction (yes, you can say it, you are EARLY)
If you want to make any kind of transaction (except buying) so selling, transfering, creating and create Inscriptions, you need a full Bitcoin Node.
If you're really curious on how to run a node, read this article: https://bitcoin.org/en/full-node#setup-a-full-node
(So yes, for now, there's a lot of barriers to entry to enter the ecosystem but it also means most people won't do the work and you can use the advantage)
All right, let's say I buy one, where do I store it?
If you don't have a node, Sparrow Wallet (here's an explanation on how to make one):
https://gist.github.com/windsok/5b53a1ced6ef3eddbde260337de28980
If you do have a node, watch out for ORDINALS WALLET
They're building something that looks promising
"But I already have a node and would love to create my own Inscription, how can I make one?"
Then read this:
What's the usual supply and mint price?
For now, all the hyped collections have really low supply (100 editions) and a mint price ranging from 0.01 BTC to 0.1 BTC
How early are we?
We just crossed the 12,000th NFT minted.
Yes... barely more than a typical 10K PFP collection that's being minted every day on the Ethereum blockchain.
I want to understand better the ordinal theory. What should I do?
If you want to understand better the Ordinal theory, read this:
For now, it doesn't look that they will be mainstream but with all the bitcoin-maxi and the high gas fees... these collections will have some real diamond hands, so being part of one of those communities early on could be a good idea
What I will do is try to mint a promising collection, because as a shrimp (<1BTC) and with the risk/reward involved, that's my position. This is still really risky and I'm ready to lose all my money and none of this is financial advice.
What can we do? How to take advantage of this new opportunity?
You can :
• Find promising projects and mint them (be really careful as a lot of projects will rug or try to scam you, this is 5/5 degen)
• Become OG in some discords (could be useful in the future), Join ORDINALS WALLET DISCORD.
Create your own project, you don't even need a bitcoin node as there's people willing to inscript for you (for a fee) & grow your influence within that niche and make contacts.
If you want to make further research:
credit: Jiurn
The Bitcoin community is grappling with the rise in Bitcoin NFT mints after the launch of Ordinals, a protocol that converts individual satoshis into non-fungible digital artifacts.
Ordinals has been met with criticism from some hardliner Bitcoiners, but is hailed by others as potentially revolutionary for the future of Bitcoin's NFT scene.
New NFTs are driving up transaction fee revenues for Bitcoin miners, potentially indicating a future where cultural activity supports the network.
Ordinals is centered around a new mechanism called Inscriptions, which are digital artifacts native to the Bitcoin blockchain and can be traded, bought, and sold.
Inscriptions are stored entirely on the Bitcoin blockchain, making them forever retrievable and x7 cheaper to mint than onchain Ethereum NFTs.
Onchain Bitcoin NFTs are becoming more popular in the Bitcoin ecosystem, driven by the need for a teeming blockspace market to secure the network as the BTC block subsidy decreases.
Ordinals is seen as a step in the direction of a teeming blockspace market on Bitcoin, despite opposition from some hardliners.
Admittedly, the Ordinals Bitcoin NFT scene is super early on, so the UX to actually collect Bitcoin NFTs is understandably primordial and not very friendly right now.
With the raging activity we’ve seen in this new albeit primitive Bitcoin NFT surge, I fully expect a handful of practical “Bitcoin NFT wallets” and “Bitcoin NFT marketplaces” to pop up in short order.
Gamma just made it 100x easier to inscribe ordinals on Bitcoin. The Bitcoin fees might hike after this.
New ordinals tool by Gamma.
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I hope this was helpful!
Thank you for reading!
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