How will Ordinals affect Bitcoin?

var TRINITY_TTS_WP_CONFIG={“cleanText”:”How will Ordinals affect Bitcoin?.u23f8Joshua Henslee has repeatedly said thatu00a0Ordinalsu00a0have changed everything but that most people donu2019t get it yet. He recently appeared on the Learner Tank Podcast to explain how Ordinals will affect Bitcoin and why he thinks theyu2019re so revolutionary.u23f8Ordinals are causing sky-high fees on BTC, but thatu2019s where the action is (for now)u23f8Henslee begins by telling the host heu2019s playing around with Ordinals onu00a0BTCu00a0right now. Regarding volume, BTC is way ahead of BSV blockchain because people ignore the tech in favor of making short-term money. Ironically, Ordinals on BTCu00a0validateu00a0the BSV blockchain vision, but since we havenu2019t hit the technical limitations on BTC yet, thatu2019s where the action is happening.u23f8Giving a brief history of this relatively new phenomenon, Henslee explains that Ordinals kicked off in January, andu00a0BRC-20 tokensu00a0started in early March. He has been tracking demand and monitoring things likeu00a0transaction feesu00a0which at one point shot into the hundreds and thousands of dollars. This is good for miners but bad for users. Demand is slowly subsiding, and things are calming down, but Henslee still sees a crossroads ahead for BTC: they either increase the block size or Core devs nuke Ordinals and ruin the party.u23f8Henslee reassures the host he is u201cabsolutely notu201d joining the dark side and going over to BTC. Heu2019s just on that chain because thatu2019s where the action is right now, but heu2019s still working on BSV blockchain projects. He assumed this couldnu2019t be done on BTC, but he recognizes that he was wrong about that, and that has caused him to question some of his conclusions.u23f8Is BTC more likely to raise the block size rather than migrate to a more technically capable chain like the BSV blockchain? Henslee believes so. Whether itu2019s true or not, the market perceives BTC asu00a0Bitcoin, and thatu2019s the chain users want to build on. However, the same old arguments about the burden of running a full node are still being made, so there will beu00a0resistance to any block size increase.u23f8On the state of BSV todayu23f8Henslee notes that, while it is technically inferior, the BTC transactions are mostly composed of real people trying to do things. This is stacking the blocks full of fees for miners. Even though the BSV blockchain has many more transactions, thereu2019s not even close to the same money in the blocks. Withu00a0tiny transaction fees, there has to be massive demand before miners consider switching to BSV blockchain, and weu2019re just not there yet. He points out that big blocks make more economic sense in the long run, but the small fees in the blocks create a short-term problem.u23f8What could fix it? Massive demand for BSV transactions and/or speculation on the coin price. Even driving it up through speculation only would boost miner revenues and attract interest in the chain. Currently, BSV has only two permanent minersu2014TAAL andu00a0GorillaPoolu2014and TAAL has the vast majority of the hash power. There needs to be more miners, and when they come, it will make the network stronger and less vulnerable to attacks we have seen in the past.u23f8How did we get here? There is a confluence of factors working together, he says.u00a0Lack of demand,u00a0exchange delisting, and a price drop all lead to a downward spiral. Could it lead to the death of the BSV blockchain? Henslee says nou2014as long as the coin has a price, people will mine it, and that can even be done with GPUs at lower difficulty levels. The blockchain will stay alive as long as the coin has a price.u23f8When will the true path be revealed?u23f8The host asks Henslee where all of this is going. People disagree about theu00a0fundamental nature of Bitcoinu00a0and where all of this is headed. When will the truth be revealed? Will there be an uproar on BTC within months, or is it a longer-term likelihood?u23f8u201cItu2019s hard to say,u201d he replies. Heu2019s keeping an eye on the fees in each block and the price of tokens. While the moment of truth will eventually come for BTC, he does say this is a truly revolutionary developmentu2014a peer-to-peer, trustless network with no counterparty risk. Most people havenu2019t yet woken up to the reality of what has happened and its implications, including thatu00a0altcoinsu00a0are dead in the water.u23f8How can we access this on-chain economy? Via wallets, giving users total control. We canu00a0mint tokensu00a0andu00a0non-fungible tokensu00a0(NFTs) and pay/swap them for bitcoins directly. Itu2019s a lot like vending machines; we put cash in and get something back directly. Indeed, this is an analogyu00a0Satoshi Nakamotou00a0used himself.u23f8Where will the money go when it flows into the on-chain economy? Nobody knows, but at the peak of the recent hype, the token ORDI had 50% of the liquidity because it was the first.u23f8Are Ordinals only JPEGs, or are they potentially much more?u23f8Henslee says they can be anything; JPEGs, video, audio, or combinations of these. In the long term, he thinksu00a0AI generatorsu00a0like Midjourney will be connected to a blockchain, noting that apps like Hapi allow BSV blockchain users to mint NFTs directly to the blockchain for just $0.04 per mint.u23f8The conversation then delves into an interesting fact about Ordinals; while all NFTs have a unique serial number in the form of a transaction ID, Ordinals are also numbered individually, allowing people to perceive value in numbers they like, which are earlier than others, etc. For example, people who like the number seven might place more value on NFTs with that number than others. When we add identity into the mix, NFTs can also derive extra value based on who minted them.u23f8Henslee encourages viewers to do whatever they can think of on the BSV blockchain. It costs nearly nothing, so thereu2019s nothing to lose. He says that he minted something for four cents and sold it for $3u2014astronomical returns on a percentage basis.u23f8How can a beginner learn to build on BSV?u23f8The host finishes by asking Henslee how he can startu00a0building on BSV, saying how excited he is after this podcast.u23f8Henslee says he has some basic tutorials onu00a0his YouTube channelu00a0but recommends learning Javascript to build applications.u23f8What will happen to Web2 companies if BSV blockchain takes off the way we hope? Will they migrate across? Henslee thinks theyu2019re more likely to die off as the business models they rely on are fundamentally based on the old system. This may be difficult for us to imagine now, but before the internet, there were many giant companies that dominated their industries, and many of them no longer exist.u23f8Watch: How to build a BSV businessu23f8″,”headlineText”:”How will Ordinals affect Bitcoin?”,”articleText”:”Joshua Henslee has repeatedly said thatu00a0Ordinalsu00a0have changed everything but that most people donu2019t get it yet. He recently appeared on the Learner Tank Podcast to explain how Ordinals will affect Bitcoin and why he thinks theyu2019re so revolutionary.u23f8Ordinals are causing sky-high fees on BTC, but thatu2019s where the action is (for now)u23f8Henslee begins by telling the host heu2019s playing around with Ordinals onu00a0BTCu00a0right now. Regarding volume, BTC is way ahead of BSV blockchain because people ignore the tech in favor of making short-term money. Ironically, Ordinals on BTCu00a0validateu00a0the BSV blockchain vision, but since we havenu2019t hit the technical limitations on BTC yet, thatu2019s where the action is happening.u23f8Giving a brief history of this relatively new phenomenon, Henslee explains that Ordinals kicked off in January, andu00a0BRC-20 tokensu00a0started in early March. He has been tracking demand and monitoring things likeu00a0transaction feesu00a0which at one point shot into the hundreds and thousands of dollars. This is good for miners but bad for users. Demand is slowly subsiding, and things are calming down, but Henslee still sees a crossroads ahead for BTC: they either increase the block size or Core devs nuke Ordinals and ruin the party.u23f8Henslee reassures the host he is u201cabsolutely notu201d joining the dark side and going over to BTC. Heu2019s just on that chain because thatu2019s where the action is right now, but heu2019s still working on BSV blockchain projects. He assumed this couldnu2019t be done on BTC, but he recognizes that he was wrong about that, and that has caused him to question some of his conclusions.u23f8Is BTC more likely to raise the block size rather than migrate to a more technically capable chain like the BSV blockchain? Henslee believes so. Whether itu2019s true or not, the market perceives BTC asu00a0Bitcoin, and thatu2019s the chain users want to build on. However, the same old arguments about the burden of running a full node are still being made, so there will beu00a0resistance to any block size increase.u23f8On the state of BSV todayu23f8Henslee notes that, while it is technically inferior, the BTC transactions are mostly composed of real people trying to do things. This is stacking the blocks full of fees for miners. Even though the BSV blockchain has many more transactions, thereu2019s not even close to the same money in the blocks. Withu00a0tiny transaction fees, there has to be massive demand before miners consider switching to BSV blockchain, and weu2019re just not there yet. He points out that big blocks make more economic sense in the long run, but the small fees in the blocks create a short-term problem.u23f8What could fix it? Massive demand for BSV transactions and/or speculation on the coin price. Even driving it up through speculation only would boost miner revenues and attract interest in the chain. Currently, BSV has only two permanent minersu2014TAAL andu00a0GorillaPoolu2014and TAAL has the vast majority of the hash power. There needs to be more miners, and when they come, it will make the network stronger and less vulnerable to attacks we have seen in the past.u23f8How did we get here? There is a confluence of factors working together, he says.u00a0Lack of demand,u00a0exchange delisting, and a price drop all lead to a downward spiral. Could it lead to the death of the BSV blockchain? Henslee says nou2014as long as the coin has a price, people will mine it, and that can even be done with GPUs at lower difficulty levels. The blockchain will stay alive as long as the coin has a price.u23f8When will the true path be revealed?u23f8The host asks Henslee where all of this is going. People disagree about theu00a0fundamental nature of Bitcoinu00a0and where all of this is headed. When will the truth be revealed? Will there be an uproar on BTC within months, or is it a longer-term likelihood?u23f8u201cItu2019s hard to say,u201d he replies. Heu2019s keeping an eye on the fees in each block and the price of tokens. While the moment of truth will eventually come for BTC, he does say this is a truly revolutionary developmentu2014a peer-to-peer, trustless network with no counterparty risk. Most people havenu2019t yet woken up to the reality of what has happened and its implications, including thatu00a0altcoinsu00a0are dead in the water.u23f8How can we access this on-chain economy? Via wallets, giving users total control. We canu00a0mint tokensu00a0andu00a0non-fungible tokensu00a0(NFTs) and pay/swap them for bitcoins directly. Itu2019s a lot like vending machines; we put cash in and get something back directly. Indeed, this is an analogyu00a0Satoshi Nakamotou00a0used himself.u23f8Where will the money go when it flows into the on-chain economy? Nobody knows, but at the peak of the recent hype, the token ORDI had 50% of the liquidity because it was the first.u23f8Are Ordinals only JPEGs, or are they potentially much more?u23f8Henslee says they can be anything; JPEGs, video, audio, or combinations of these. In the long term, he thinksu00a0AI generatorsu00a0like Midjourney will be connected to a blockchain, noting that apps like Hapi allow BSV blockchain users to mint NFTs directly to the blockchain for just $0.04 per mint.u23f8The conversation then delves into an interesting fact about Ordinals; while all NFTs have a unique serial number in the form of a transaction ID, Ordinals are also numbered individually, allowing people to perceive value in numbers they like, which are earlier than others, etc. For example, people who like the number seven might place more value on NFTs with that number than others. When we add identity into the mix, NFTs can also derive extra value based on who minted them.u23f8Henslee encourages viewers to do whatever they can think of on the BSV blockchain. It costs nearly nothing, so thereu2019s nothing to lose. He says that he minted something for four cents and sold it for $3u2014astronomical returns on a percentage basis.u23f8How can a beginner learn to build on BSV?u23f8The host finishes by asking Henslee how he can startu00a0building on BSV, saying how excited he is after this podcast.u23f8Henslee says he has some basic tutorials onu00a0his YouTube channelu00a0but recommends learning Javascript to build applications.u23f8What will happen to Web2 companies if BSV blockchain takes off the way we hope? Will they migrate across? Henslee thinks theyu2019re more likely to die off as the business models they rely on are fundamentally based on the old system. This may be difficult for us to imagine now, but before the internet, there were many giant companies that dominated their industries, and many of them no longer exist.u23f8Watch: How to build a BSV businessu23f8″,”metadata”:{“author”:”Gavin Lucas”},”pluginVersion”:”5.7.1″};