Published on fizara.com
Ethereum is the most widely used blockchain for NFTs as it supports the execution of smart contracts and promotes a secure environment for users. Ethereum maintains a strong user base, making it ideal for launching new projects. Nevertheless, high transaction fees and scalability issues have drawn attention to alternative platforms. Many blockchains support NFTs, so creators have many options when it comes to optimizing costs and attracting a loyal audience. Bitcoin is one example. That blockchain wasn't originally designed for smart contracts, or even NFTs. Regardless, Bitcoin's core developers are constantly working to enhance its functionality and are making great progress.
Bitcoin NFTs, often referred to as ordinals, have gained attention in the cryptocurrency community. Many of the people who jumped on this bandwagon are actually Ethereum users who are currently trying to figure out how to run a Bitcoin node. Bitcoiners have openly criticized Ordinals for not being space efficient and using Segwit and Taproot upgrades to spam the blockchain, but not in a malicious way. But that's another story. The digital asset inscribed in Bitcoin's lowest denomination, Satoshi, can be bought, sold, and traded like any other NFT on traditional markets, so now that it has its own NFT, investors can wonder how much Bitcoin will cost. I'm wondering.
Bitcoin NFTs utilize the Ordinal Protocol to operate using inscriptions
The Ordinals protocol allows you to mint NFTs directly onto the Bitcoin blockchain by attaching data such as images and videos. Any content is inscribed directly on-chain within the network, turning the inscription into a digital artifact native to Bitcoin. Each NFT has a unique serial number engraved on it, allowing it to be individually tracked and exchanged for other cryptocurrencies. Since the Taproot upgrade went live in November 2021, Inscription to Satoshi has become possible. The most common use of Ordinal is the creation of digital collections that can be sold using partially signed transactions. Ordinals' raison d'être is rarity and value, so you need to start early.
Here are the factors to consider before choosing which Bitcoin NFT to buy
There are several different marketplaces where you can store, trade, and exchange ordinal numbers. All you have to do is connect your compatible wallet and browse the available collections. Recent developments allow creators to mint and stamp Bitcoin NFTs.
Perhaps you are one of the countless people who have developed a new interest in ordinal numbers. In that case, before you put everything into these tokens, you should consider the following:
Critically evaluate the value proposition
Ordinals can revolutionize different fields of activity, which contributes to a broader value proposition. Multiple games have been registered on the Bitcoin blockchain to provide accessible and unalterable versions of old classics. By building a gaming ecosystem on Bitcoin around Ordinals, we will be able to take full advantage of its security, stability, and decentralization. In-game assets such as skins, weapons, and avatars can be converted into NFTs, giving players true ownership. Unless your NFT project is art-based, you need to understand what your tokens are useful for. Is its value limited to the digital space, or can it also be applied to the real world? Ordinal numbers can be used to track products throughout the supply chain and, among other things, to ensure the authenticity of goods.
The value of collectibles often comes from their rarity and exclusivity, creating high demand among collectors. For example, TwelveFold is limited to 300 generative artworks based on a 12×12 grid, inspired by the relationship between time, mathematics, and blockchain. Another factor that gives Bitcoin NFTs value is the identity or previous ownership history of their creator. Digital assets previously owned by prominent figures, celebrities, and artists maintain a good reputation. Ordinals creator Casey Rodarmor is currently working on his own collection. He only ever wrote one epitaph.
Investigate the underlying demand and supply
Demand and supply dynamics are not a fixed rule in trading, but they help build a complete picture of projects (and trends). Ordinal's value is enhanced by maximizing demand through marketing and advertising. When a company is unable to satisfy a large market, the consequences include a decline in sales and profitability. Daily trading volume helps you understand how much demand there is in the industry. Determine the number of Bitcoin addresses holding NFTs to identify the community surrounding the project. Additionally, it is worth evaluating the supply from an economic point of view. Oversupply could cause prices for the popular Ordinals collection to fall.
Meet the team behind the Bitcoin Ordinals project
Another important factor to consider is the team behind the Ordinals project. Find out the founder's background, experience, skills, and vision. Speaking of which, you can also check out their credibility, reputation, and network of advisors to see if your project will grow and be successful. Ensure that you, as a customer, have a clear and immediate understanding of the project's progress throughout the development process. Sellers must be transparent about any issues they are aware of. If not, please reconsider your purchase decision. Check to see if the original founders are still involved in Ordinals project efforts. If so, that's a big plus point.
Research the history and origins of your NFT collection, as it is important to understand the context of the project. Understand what opportunities you are working on and what goals you are trying to achieve. The whitepaper details the objectives and technical aspects of the project. The information is fairly easy to grasp. What you need to look for is a well-structured plan, technical details, and a clear roadmap. See how your team communicates with the public and evaluate the quality of their website, social media profiles, and marketing materials. Poor quality can indicate a lack of effort or ability.
Thoughts as a conclusion
Once registered on the Bitcoin blockchain, the ordinal number cannot be edited or deleted. And it is precisely this hardness that makes them unique. Bitcoin NFTs should be stored in a dedicated account to avoid sending collectibles along with regular transfers.
