According to cryptocurrency investment company Grayscale, Bitcoin $28,590 Ordinals, also known as Bitcoin NFTs, might rekindle developer interest in Bitcoin and increase mining costs.
The business argued in an April 27 “Market Byte” blog post that Ordinals give two significant advantages to the growth and development of the Bitcoin ecosystem. According to Grayscale, the first is a significant rise in fees paid to miners since the protocol’s introduction in January.
“With the introduction of ordinals, total fees paid to miners have increased […], potentially establishing a sustainable baseline level of transaction fees to incentivize miners.”
According to Grayscale, this will assure “continued network security throughout the lifetime of the Bitcoin network.”
According to Cointelegraph, more than $600,000 was paid to Bitcoin miners in less than two months after its inception, simply as a consequence of fees produced by Ordinal inscriptions. As at the time of publishing, that sum has surpassed $6.5 million.
The investment group also thinks that Ordinals and the “velocity of NFT adoption” might attract new Bitcoin users and stimulate further growth on the Bitcoin network. “We believe that the emergence of ordinals is likely to promote a development-oriented community and culture in support of the Bitcoin network.”
Ordinals set a new milestone on April 30 when the number of daily inscriptions surpassed 300,000. According to blockchain analytics startup IntoTheBlock, the number of Bitcoin transactions hit heights not seen in many years around the same period.
Ordinals’ dramatic ascent has been a contentious subject in the larger Bitcoin community, with Bitcoin maximalists heavily criticizing them for deviating from Bitcoin’s initial purpose as a peer-to-peer electronic money and cluttering up precious block space.
Blockstream CEO Adam Back is one such critic, having said that Ordinals are “useless” and that he is “more into Bitcoin as a currency” in a number of statements.