Bitcoin has come a long way since its inception in 2009 as a fairly obscure form of digital cash. The project remained relatively unnoticed by the general public for several years, but gained popularity in 2013 and rapidly became the largest asset class in the world.
In fact, while Bitcoin was the first cryptocurrency ever, its invention led to thousands of new cryptocurrencies following suit, with complex use cases, extensive derivatives markets, and a growing list of added features. Bitcoin developers have also continued to innovate the project, with the biggest update in recent years being Bitcoin Ordinals, which launched in 2023.
What are Bitcoin Ordinal Numbers? Bitcoin ordinals explained
Bitcoin ordinals are Bitcoin’s answer to NFTs, allowing data to be written into a specific Satoshi (one millionth of a Bitcoin) in a way that makes that Satoshi different from others or non-fungible.
So why does this matter?
Bitcoin was originally introduced as a fungible form of digital cash. Like a US dollar, one is equal to another as far as the people involved are concerned. However, Bitcoin ordinals allow users to distinguish satoshis from one another.
For example, a collector might be interested in owning a Satoshi from a pivotal moment in Bitcoin’s history, such as the Bitcoin halving, which occurs every four years, and therefore be willing to spend more than the market value of a Satoshi to acquire it buy.
This takes Bitcoin into the realm of digital collectibles and NFTs. The Ethereum NFT (non-fungible token) market exploded in 2021 with NFT sales exceeding $24 billion. This…
