🤑 Bitcoin Miners Raking In Millions From BRC-20 Mania

Bitcoin miners enjoyed a staggering $184 million windfall in transaction fees from April to June, driven by the popularity of BRC-20 tokens and Ordinals.

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Ordinal Hive
July 06, 2023

Good morning: LFG🔥

  • NFT Market - The world of Ordinals has many new things in store for us. At the top of the list we have Bitcoin Frogs. Yes, it is a frog, and yes it does live on Bitcoin. They’ve had over $250k in Bitcoin trading volume within this past week.

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Today's edition:

  • 🤑 Bitcoin Miners Raking In Millions From BRC-20 Mania

  • 🪙 The New BRC-69 Token Standard

  • 🎮 How Ordinals Are Changing The Game

  • ➗ Controversial Ordinals Divide Bitcoin Enthusiasts

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  • 🆕 Industry-leading company hosts major event to push for Web3 transformation (CoinTelegraph)

  • ⁉️ Web3 vs Web 3.0: What’s the Difference? (Makeuseof)

  • 👮 Hong Kong Forms Task Force To Promote Web3 (Kitco)

  • ⚽ Credit Suisse Issues ETH NFTs To Raise Funds (Blockworks)

  • 🧑‍🎨 Navigating Web3 And The Metaverse (Forbes)

  • 💹 Can NFTs Ever Be Useful (Verdict)

  • 🦅 Crypto Braced For $1.1 Trillion Fed Panic (Forbes)

  • 💻 Satoshi Labs Rills AI Tool That Turns Selfies Into NFTs (CoinDesk)

Bitcoin Miners Raking In Millions From BRC-20 Mania

Bitcoin miners enjoyed a staggering $184 million windfall in transaction fees from April to June, driven by the popularity of BRC-20 tokens and Ordinals. This exceptional shift marks a significant change in the fee market and highlights the potential of protocols like Ordinals to help miners stay profitable over time.

Here are the quick facts:

  • Coin Metrics reports a multimillion-dollar surge in Bitcoin mining revenue from transaction fees.

  • Ordinals and BRC-20 tokens played a pivotal role in driving the surge.

  • The shift represents a notable change in the fee market and benefits miners.

  • Despite the frenzy subsiding, miners still earn substantially more from transaction fees compared to previous years.

  • Bitcoin's evolving ecosystem continues to offer lucrative opportunities for miners.

The New BRC-69 Token Standard

BRC-69 revolutionizes Bitcoin Ordinals by bypassing the 4MB limit with recursive inscriptions, reducing costs by over 90%. Say goodbye to full image inscriptions and hello to a single line of text that automatically renders the complete image on all ordinals-frontends. The sky's the limit as Bitcoin gains its internal internet!

Here are the quick facts:

  • BRC-69 allows users to recycle data, unlocking unprecedented possibilities.

  • Bitcoin's limited blockspace is no longer a hurdle with the power of recursive inscriptions.

  • NFT historian, Leonidas, describes it as a pivotal moment in Bitcoin's history.

  • Bitmaps and other exciting developments have already set the stage for Ordinals' dominance.

  • Get ready to explore a new era of creativity and efficiency in the world of Bitcoin Ordinals.

How Ordinals Are Changing The Game

Bitcoin's role in the digital world has expanded beyond mere savings and transactions. Thanks to a privacy upgrade in late 2021, the unintended consequence of enabling data storage on the Bitcoin blockchain has given rise to NFT-like inscriptions and BRC-20 tokens. However, this surge in popularity has come at a cost.

10 million inscriptions were reached in less than 4 months

Here are the quick facts:

  • A late 2021 privacy upgrade inadvertently allowed data storage on the Bitcoin blockchain, leading to the emergence of NFT-like inscriptions and BRC-20 tokens.

  • The popularity of these inscriptions and tokens has driven up transaction costs, prompting Binance to utilize the Lightning Network for BTC withdrawals.

  • While some argue that Bitcoin should solely serve as digital gold, the exploration of new use cases on its blockchain enhances its utility and paves the way for Lightning Network adoption.

  • The BRC-20 token standard, similar to ERC-20 tokens on Ethereum, has gained momentum, but its growth has also contributed to higher transaction costs.

  • The introduction of BRC-20 tokens has sparked discussions on network scaling for Bitcoin and the potential long-term impact on users.

  • The Lightning Network, with its fast and cost-effective transactions, offers a solution to scaling challenges and is poised to become the default global payments processor.

Controversial Ordinals Divide Bitcoin Enthusiasts

Michael Saylor, the outspoken CEO of Microstrategy, expressed his disdain for Ordinals and likened them to "awful donuts made of sawdust." In his view, investing in such NFTs is a foolish idea that could lead to bankruptcy. But his criticism extends beyond the NFTs themselves.

Here are the quick facts: 

  • Bitcoin Ordinals NFTs have gained significant traction, with a trading volume of $15 million in June.

  • Michael Saylor, CEO of Microstrategy, considers Ordinals and other Bitcoin NFTs a poor investment.

  • Saylor criticizes the idea of creating a protocol to ban NFTs on the Bitcoin blockchain, citing the absence of a real danger.

  • He suggests that innovation should align with the protocol and proposes exploring Layer 2 solutions like Lightning for new open protocols.

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