In recent times, there has been a lot of debate surrounding the impact of Ordinals and BRC20 on the Bitcoin network. While some people argue that these protocols have broken Bitcoin, it’s important to understand the facts before jumping to conclusions.
- Chess Game Analogy: Just like in a game of chess, there are players with different strategies and motives. Some think ahead further, some shorter. Some Bitcoin detractors will use any opportunity to spread fear, uncertainty, and doubt ????, while others with vested interests may try to promote their own solutions. It’s crucial to critically analyze the claims made by both sides.
- State-Level-Attack: For the first time, we have seen how much it would cost a state-level attacker to come close to stifling the Bitcoin network: about $2 billion. The network has the ability to adapt and grow, but this is definitely a concern.
- Lightning Network & Channels: ⚡️ We have seen that the Lightning Network and payment channels are pretty much useless for retail, trapping people’s funds, as they can’t exit. The statement “Bitcoin is 24/7” completely ceases to exist with Lightning.
- High Transaction Fees: With increased usage, transaction fees may rise, making Bitcoin less suitable for everyday payments. Without other solutions, the “fair cost” of a transaction when Bitcoin is actually used is around 10–20 USD.
- Tail-End Emissions & Uncapped Supply: Bitcoin has a finite supply, capped at 21 million coins. Tail-end emissions could help with the fees, however they would cause a slight increase in the overall supply. This will likely be a great solution and is negligible for Bitcoin’s value proposition.
- Block Size Debate: The block size debate has been ongoing for years, with some advocating for larger blocks to accommodate more transactions. This debate will spark up again.
- Centralization & Lack of Agility: While Bitcoin’s decentralized nature ensures that no single entity can control its development, this shows during times like these, that no “fast fix” is possible.
In conclusion, Ordinals and BRC20 have not broken Bitcoin. The network continues to grow, adapt, and improve, addressing challenges along the way. While it’s essential to stay informed and be aware of potential issues, it’s equally important not to fall for baseless claims and misinformation.
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