Elon Musk, the influential CEO of Tesla and a prominent figure in the tech and cryptocurrency worlds, recently made intriguing remarks regarding nonfungible tokens (NFTs) during a podcast, inadvertently shedding light on the potential of Bitcoin Ordinals, also known as Bitcoin NFTs.
In a conversation on The Joe Rogan Experience, Musk humorously quipped about the nature of NFTs, stating that they are essentially just URLs linking to JPEG images. He went on to suggest that NFT projects should take the extra step of encoding the JPEG image in the blockchain, emphasizing the importance of preserving the image in the event that the entity housing it goes out of business.
This seemingly offhand comment from Musk garnered the attention of the Bitcoin community, where enthusiasts and developers saw it as an endorsement of the Bitcoin Ordinals concept. Bitcoin Ordinals, essentially Bitcoin’s equivalent of NFTs, were introduced in January by developer Casey Rodarmor, facilitated by the Taproot soft fork implemented in November 2021. Musk’s inadvertent endorsement of encoding JPEG images in the blockchain resonated with those who advocate for Bitcoin Ordinals.
![Bitcoin Ordinals Gain Momentum as Elon Musk Slams NFTs image 9](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-9.png?resize=1024%2C594&ssl=1)
![Bitcoin Ordinals Gain Momentum as Elon Musk Slams NFTs image 9](https://i0.wp.com/nosisnews.com/wp-content/uploads/2023/11/image-9.png?resize=1024%2C594&ssl=1)
Notably, Bitcoin Ordinals have gained traction, with over 38 million inscriptions and counting permanently etched into Bitcoin’s blockchain. This unique approach addresses one of the most common criticisms of NFTs – their reliance on external entities and platforms for the hosting of digital assets.
The creator of NFT projects DeGods and y00ts, Rohun “Frank” Vora, remarked that Bitcoin Ordinals represent an elegant solution to one of the fundamental criticisms of traditional NFTs. Musk’s remarks underscore the resilience and long-term viability of Bitcoin Ordinals, further fueling their growth and adoption within the cryptocurrency community.
Such was the impact of Musk’s comments that a developer known as “Leonidas” was inspired to take action. In a symbolic move, he inscribed a 19-second video into Bitcoin’s blockchain at block 814,773, serving as a tangible demonstration of the potential for preserving digital content in a decentralized and immutable manner.
.@elonmusk you just laid out the case for Bitcoin ordinals – image/text inscriptions directly on the most secure open source monetary network on the planet. There are currently 38 million of these inscriptions on the Bitcoin blockchain. pic.twitter.com/WASj1qpkz8
— Will Clemente (@WClementeIII) November 1, 2023
While Musk’s recent comments raised questions about the validity and permanence of NFTs, it’s important to note that not all NFT projects are created equal. For instance, Larva Labs, the creators of the iconic CryptoPunks NFTs, took steps to migrate these digital collectibles onto the Ethereum blockchain in August 2021. This decision aimed to ensure the long-term survival of CryptoPunks images and attributes and enable universal access through Ethereum clients.
Furthermore, the team behind Ethereum-native NFTs, OnChainMonkeys, announced its intention to migrate to the Bitcoin network in September. Although not explicitly addressing the JPEG dilemma, the CEO, Danny Yang, emphasized that NFTs would thrive on Bitcoin due to its robust security and decentralization. In his words, “The Bitcoin Ordinal protocol is better designed for decentralization and security than the Ethereum NFT protocol. High-value NFTs will win on Bitcoin.”
Despite the increasing interest in Bitcoin Ordinals and the potential migration of some NFT projects to Bitcoin, Ethereum remains a dominant force in the NFT ecosystem. According to data from CoinGecko sourced from June, Ethereum continues to host 84% of all NFT trading volumes, with Bitcoin and ImmutableX accounting for 11% and 2.5% of the market share, respectively.
In conclusion, Elon Musk’s playful commentary on NFTs has inadvertently spotlighted the value of Bitcoin Ordinals and the need for innovative approaches to preserving digital content. As the cryptocurrency landscape continues to evolve, these developments serve as a reminder of the ever-shifting dynamics within the NFT space and the growing importance of blockchain technology in the world of digital art and collectibles.
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