FOMO kills but it kills at the end of the cycle not at the beginning. To make the ‘big’ money you have to be quick and of course you have to be brave. Brave is not the same as foolish, but the feelings you feel may be similar. For me, you look for the very first opportunity and if you think it’s good then you leave it alone. If you know it’s great, you grab some. I repeat this saying over and over because it works: ‘If you think it’s gold it isn’t, if you know it’s gold it is.’ I learned this while scrambling for nuggets in a freezing cold river up to my thighs. There you go, of course you want to believe that the glitter in your pan is gold and not mica, but when you find a speck of the real thing, you know it’s gold. As the saying goes, when you think it is gold, it is always mica; A glaring false positive.
So, there’s a new craze in bitcoin, and I Thinking This is gold. it is ordinals,
An ordinal is a piece of information written on the bitcoin blockchain and referenced by a unique address held in a blockchain data structure. It’s like an NFT, but something different and that difference is important. NFT is a crypto token that refers to a piece of data somewhere on the Internet, such as the IPFS (Interplanetary File System), which holds the actual data associated with the token. The data may be elsewhere so the problem is if that file or its storage is gone the NFT data is gone leaving the token pointing out of thin air. It’s like having Super Bowl tickets to last year’s game.
This means that Ethereum may do its job in a hundred years, but bored monkeys or rogues may evaporate in a cloud of bit-decay with long-stored images no longer their NFT references (of course no one can fix this). can dodge to do) it, but you see it is different from keeping the monkey inside the blockchain).
An ordinal is actually stored in a bitcoin block, so when bitcoin or any of its resulting forks live, the data is there. The only way for it to disappear is to shut down existing bitcoins and erase every instance of the blockchain. it is almost impossible. If there was a zombie apocalypse full of survivalists, you can bet anyone, somewhere on the solar would be running bitcoin. An ordinal like cockroaches would be one of the last things to go extinct.
All kinds of things are being stored as ordinals, which can range in size up to 4 megabytes. However, storage is not cheap as it must be mined in the blockchain rather than locked up on a remote server somewhere. I used ordinalsbot.com and paid to ‘inscribe’ a 25K byte image onto the bitcoin blockchain; It cost $115. Megabytes will cost in the thousands. The attraction is the fact that the order of the art work I created will never disappear; The work is forever, like Neolithic cave painting in Lascaux or Native American glyphs. While it didn’t take years for 5% of Van Gogh’s paintings to disappear, my piece is guaranteed to be immortal.
if you want to see it here it is ordinary 8041535 And it’s yours for 1 BTC (I can’t resist a side hustle).
When I visited the Miami Blockchain Show on the 19th there were eight million ordinals in existence and four days later there were nine million. The manufacture of ordinals is exploding. As such, this is a land grab moment and anyone who wants to try and capture that early opportunity should get their skates on now.
In the meantime this development may or may not be good news for bitcoin.
This has certainly led to an explosion of transaction fees.
Here’s a chart.
Not quite a ‘Bitcoin Maxi’ fan. Bitcoin is their digital gold; Bitcoin is for serious economic purposes and not for frog pictures. It’s like taking gold and making earrings out of it… oh wait! For bitcoin hardcore, the ordinals are not part of Satoshi’s vision. It’s a clever ‘hack’ to create new but unwanted functionality.
Sadly – for them – this cannot be stopped as the ordinals use legitimate bitcoin structures and functionalities to perform their ‘inscription’.
However, the concerns of Bitcoin Maxis are genuine. If there is too much value in storing things like pictures and text in the bitcoin blockchain, it will drive up costs and crowd out financial transactions, and that sounds like a threat. Alternatively, it will run transactions of value less than bitcoin entirely and on Layer 2 solutions just as Polygon serves a similar purpose for Ethereum. It’s long been the dream of bitcoin to be cheaper than tradefi, and it will never happen that sending money normally through an old school bank within your country will cost a dollar a pop.
Then again, Ordinals may be a fad doomed to die. It could happen, like the death of so many fads. However, I believe this is not going to happen because even the most idiotic crypto content takes on a life of its own and refuses to die. It’s not just a crypto thing. Take, for example, the obsolete Timekeepers. They sell for tens of thousands and are all very popular at the moment; The same is true in the case of postage stamps. Crazy economics isn’t just reserved for blockchain economics. More likely the ordinal will spark a new wave of activity for bitcoin where new use cases appear that go beyond its previous incarnation. All the while, it will remain layer 0 of all crypto.
The fact that transaction levels have gone up and gone a bonus for miners, many of whom were struggling until the sudden influx of simple fees, should be enough to prove that the ordinals Not a success.
Everyone at the Miami Bitcoin Show was using the cliché ‘down the rabbit hole’. Ordinals are another ‘rabbit hole’ to fall down, and I expect it to be extremely profitable. I believe they are going to be a huge financial opportunity for beginners, and no doubt once again a trap for the FOMO crowd of late.