Bitcoin Ordinals have been gaining significant attention, marked by over 46 million inscriptions and high transaction fees. These NFT-like features on the Bitcoin blockchain could have an impact on the cryptocurrency’s value, but also come with risks.
Could Bitcoin Ordinals Contribute to a BTC Bull Run? ChatGPT, an AI-powered language model, claimed that Ordinals represent a “significant development” in the asset’s ecosystem and named five potential factors to watch.
Innovation and interest on BTC Ordinals could enable a new way to utilize the Bitcoin blockchain, “effectively creating digital artifacts.” Furthermore, the NFT-like dynamics could attract more people to the ecosystem, leading to increased transaction volumes and more attention toward Bitcoin. Market sentiment and diversification are also important aspects to consider, as they could bring a new investor class and possibly bolster the valuation.
However, the popularity of Ordinals might cause an increase in the size of the Bitcoin blockchain, congesting the network and driving transaction fees up. Additionally, some may argue that BTC Ordinals could divert Bitcoin from its core purpose of being a store of value and a decentralized digital currency.
In conclusion, BTC Ordinals offer probable market expansion, but come with risks like increased blockchain size, higher fees, and potential diversion from Bitcoin’s original purpose.
