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By Nastasha Firdaus Khan

Forget memes and cat videos, the hottest trend on the internet right now might just be happening on the Bitcoin blockchain. No, we're not talking about another cryptocurrency, but a revolutionary new way to use the OG digital currency...

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Ordinals

Imagine inscribing a piece of art, a song, even a tweet, directly onto the Bitcoin blockchain. That's the power of Ordinals. They're essentially unique, non-fungible tokens (NFTs) etched onto the same ledger that underpins Bitcoin itself. Think of it like carving your initials on a monument – it's permanent, verifiable, and potentially very valuable.

But why should you care about Ordinals? Here's why they deserve a spot on your investment radar, especially as we stand on the precipice of the next bull run...

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Scarcity Meets Security

Bitcoin itself is scarce, with a finite supply of 21 million coins. Ordinals, however, take scarcity to a whole new level. The inscription space on the Bitcoin blockchain is limited, meaning only a specific number of Ordinals can ever exist. This scarcity, combined with the inherent security of the Bitcoin blockchain, creates a unique investment proposition. Imagine owning a piece of digital real estate on the most secure network in the world.

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A New Frontier for Digital Art

Forget JPEGs and MP3s, Ordinals open up a whole new realm for digital art. Artists can now create unique, verifiable pieces directly on the blockchain, potentially disrupting the existing NFT landscape. Owning an Ordinal artwork is like owning a one-of-a-kind Mona Lisa, except it exists in the digital realm.

A Gateway to the Bitcoin Economy

Ordinals have the potential to act as a gateway for new users to enter the Bitcoin ecosystem. Owning an Ordinal could be a way to participate in the Bitcoin network without buying a whole Bitcoin, which can be quite expensive for some. This broader access could fuel further adoption and growth for the entire Bitcoin economy. Owning an Ordinal (or two!) could also open up opportunities for further investments in the space as many reputable Ordinal projects often provide holders with many benefits which can often lead to future rewards for holders. For example, holders of certain projects get whitelisted automatically for other in demand projects or newer collections from the same teams.

Early Days, High Potential

The Ordinals ecosystem is still in its early stages, similar to the early days of NFTs. This presents a unique opportunity for early adopters to potentially benefit from the future growth of the market. However, as with any investment, remember to do your own research and understand the inherent risks involved before diving in.

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Ordinals Spotlight

The Quantum Cats Ordinals Project, launched in early 2024 by well-known Ordinals pioneers called Taproot Wizards, quickly became a notable success story within the nascent Ordinals ecosystem. This project aimed to showcase the potential of Ordinals for digital art creation and collectible ownership while paying homage to Bitcoin's OP_CAT improvement proposal.

OP_CAT holds a long and sometimes complicated historical reference to Bitcoin’s genesis. In a nutshell, Bitcoin's code is constantly evolving, with developers sometimes looking back to the past for inspiration. OP_CAT is actually code, originally included in Bitcoin's early days but removed by its creator Satoshi Nakamoto in 2010.

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Think of ‘OP_CAT’ as a simple tool that could combine two pieces of information within the Bitcoin network. However, Nakamoto worried it could be misused to overload the network with unnecessary data or potentially make it vulnerable to attacks.

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Now, some developers are proposing a new version of OP_CAT that addresses these concerns. They believe it could offer useful functionalities without compromising the network's security.

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It is important to remember that this proposal is still under discussion, and it's not guaranteed to be implemented. But it shows how Bitcoin's developers are constantly exploring ways to improve the network, even by revisiting ideas from its early days.

The team behind Taproot Wizards launched a 3-month long campaign utilising various marketing tactics such as extensive community building on twitter and discord, advertising and discussing their project on notable bitcoin and crypto e-news sites as well as networking with renowned KOLs within the NFT space spanning from Ethereum, Solana and of course Bitcoin. The combination of effective marketing, the stirrings of a bull cycle in crypto and exclusivity that the collection boasts through their steep entry price point and difficulty in gaining whitelists to essentially have first dibs to mint the cats created the perfect storm of hyper demand.

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Despite several launch-day hiccups due to the emerging tech within the space, the Quantum Cats project burst into existence on February 1st, 2024, selling out its entire collection of 3,333 unique cat-themed Ordinals within 2 hours. This feat, which people could mint at the price of 0.1 Bitcoin (roughly $4,265 USD on that day), raked in over $13 million USD in total sales revenue, showcasing the incredible potential and early adopter fervour within the Ordinals space.

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Other notable Ordinals projects include ‘Inscribed Pepes,’ ‘Ordinal Maxi Biz’ and ‘Bitcoin Boos’ all of which have current minimum prices of over 0.2 BTC (equivalent to $13,365). This means that anyone interested in buying and owning these art pieces will have to shell out at least 0.2 BTC. Ordinals are commanding the attention of serious digital art enthusiasts, investors and art connoisseurs and coupled with the brewing bull cycle in crypto this year, many reputable ordinal collections are set to enter their own bull market.

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The Takeaway

Ordinals are a revolutionary new way to interact with the Bitcoin blockchain. But like everything new and exciting, there are bound to be critics and even haters of the innovation. In the case of Ordinals, Bitcoin’s community has its fair share of doubters who are not keen on the fact that Ordinals are increasingly being viewed as having high memetic/cultural value which has spurned the likes of Dogecoin and Pepecoin in the past.

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Having this sort of value attached to it can seem very flimsy and gives the impression that Ordinals can be unserious. But seeing as its art value is holding its own very well, I’d wager that being unserious is far from the truth of the matter.

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Their unique combination of scarcity, security, and potential for disruption make them a compelling proposition for both art enthusiasts and savvy investors. Ordinals are fully valid in today’s Bitcoin software, removing the ability to create ordinal inscriptions would require an update to the Bitcoin protocol. Thus, it’s ultimately up to the Bitcoin community to collectively decide whether or not ordinals are here to stay.

As we enter the next bull cycle, keeping an eye on Ordinals could be a wise move, but remember, the future, like the internet itself, is full of surprises.  

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