Bitcoin’s NFT market has arrived and there’s no going back. In this video I discuss why people are suddenly going all in on Bitcoin NFTs and what the next few months might look like.
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0:00 start here
1:53 satoshis are the KEY
3:31 Inscriptions
4:05 bitcoin vs ethereum
6:45 how big can this get?
8:13 extremely early
9:53 be careful about “firsts”
Hey everyone how's it going so let's do A little pop quiz okay what are these Well if you've been around the nft space For a while you might say well they kind Of look like crypto bunks okay it's the First profile big collection on ethereum Launched in 2017 and today they're some Of the most expensive nfts on the market And well you'd be wrong okay these are Punks but they're not ethereum punks They're Punks on bitcoin and they Weren't launch in 2017 they were Actually launched last week in fact the Only thing they have in common with Ethereum punks is that they're also very Expensive so this ordinal Punk was Minted for 250 last week and it just Recently sold for 25 000 and I think the Floor has actually doubled in the last Few days since this Tweet now even Though we talk about crypto assets a lot On this channel we rarely rarely talk About Bitcoin okay I've mentioned it Here and there but 90 of my content is Related to ethereum and then the other 10 would be like Solana or some other All chains like that and yeah Bitcoin is Still by far the largest most valuable Blockchain in the space and it's not That I don't like Bitcoin I actually own More Bitcoin than ethereum uh the issue Is that nfts just didn't take off on Bitcoin the way they did on other chains And this is partly because unlike
Ethereum Bitcoin nfts had to come from a Side chain or a layer two and that's Never ideal and the reason that was Happening was because the main Bitcoin Blockchain we didn't think it was Capable of handling nfts or so we Thought it turns out that this man right Here Casey Rod armor recently developed A new system that we're going to talk About that has completely opened up the Nft market on bitcoin and now we're Seeing the first thousands of people you Know take that Oregon Trail Into the Wild West trying to stake an early claim In this territory that they think is Going to eventually become absolutely Massive and so today I'm going to focus On the expectations that people have in Terms of adoption okay how fast can this All really scale and if it's possible That we're going to see an explosion Similar to what we saw from ethereum Nfts just a few years ago well first we Have to talk about how nfts actually Work on bitcoin and I'm gonna gloss over All the technical aspects because Otherwise I'd be down to like eight Viewers by the end of it uh but I am Going to link you to a much more In-depth guide in the description for Anyone that wants to go deeper now Essentially the key to understanding all This comes down to a currency called Satoshi's which are the base native
Currency of the Bitcoin Network Obviously named after Satoshi Nakamoto And one Bitcoin can be divided into a Hundred million satoshi's now up until Recently satoshi's were completely Fungible okay each Satoshi was treated Equally and they could be traded back And forth without any individual Identities kind of similar to how we Treat pennies in the real world but That'll change when Casey Rod armor who We already mentioned created a Convention called ordinal Theory which Allows people to track and transfer Individual Satoshi so that's Innovation Number one so now satoshi's can Basically be non-fungible you know you Can give meaning to a specific Satoshi And say that one is more rare than Another now this tweet puts it another Way ordinals have successfully turned Bitcoin into one big nft collection made Up of 2.1 quadrillion nfts called Satoshi's how each Satoshi is giving an Ordinal number when they are mined and You can add jpegs now keep in mind that Ordinals don't actually change the Nature of satoshi's okay it's more like An overlay on top of Bitcoin that lets You track individual satoshi's if you're Using the right software but it is Opt-in okay for everyone else they Continue to just be normal satoshi's and They can be spent on transactions in the
Way that they were in the past okay so You can track satoshi's and one could be More rare than another but why would a Satoshi be rare in the first place now That brings us to Innovation number two Which is called inscriptions now Inscriptions are just unique pieces of Data that you can attach to a specific Satoshi this is what makes it you know a Classic nft in the way that we normally Think about them because it could be an Image or it could be a link to some Other content like a video or really Whatever you want and so you can attach Data to a Satoshi to give it a unique Attribute you can then track and trade Individual satoshi's and there you go You now have my modern nfts on bitcoin On the main chain without needing any Layer twos now before I get into how big This can eventually be I want to talk About how Bitcoin nfts are different Than ethereum entities and in some cases It might be better and in some cases Worse now the first major difference is That Bitcoin nfts are completely on Chain whereas in most cases each nfts Are pointing to objects that exist off Chain so in other words this image of a Board ape isn't actually on chain it's Probably on ipfs or something like that And it's possible that in a hundred Years we no longer have the image that This is pointing to and this is because
The process of putting all this data on Ethereum itself can be incredibly Expensive and so in most cases people Just don't think it's worth it on Bitcoin however the entire image is put On chain and the reason this is Important is because if you have really Valuable assets you're going to want to Guarantee its permanence as much as Possible and in this case I think Bitcoin now in my opinion becomes the Gold standard for doing this okay Another difference comes down to the Idea of collections which on bitcoin Aren't really a thing so if we were to Go back to ethereum you can have Something like a board ape but that Board ape is also part of a collection Called board AP Yacht Club and this is All obvious on chain right but today Bitcoin doesn't have that so if you do Want to have a profile pic collection And tie everything together that would Require some off-chain coordination or You know some social consensus however If things are being worked on that could Make the connection between nfts a lot Stronger okay this is all literally Changing day by day and it's possible That pretty soon we're going to have a Better system okay another difference is That on ethereum usually The Collector Mints the nft and only pays the Creator If they do so whereas on bitcoin the
Creator is the one that mints or Inscribes the entity and then they sell It to the buyer later on so what this Means is that on bitcoin the creator has To take The Upfront cost okay which can Be hundreds or thousands of dollars per Nft and this is all before they know for Sure if they can even sell it and so you Can imagine that the supply of nfts on Bitcoin will grow a lot slower because Well there's a cause to put it there Okay and as a result Bitcoin nfts on Average could have a higher signal than On ethereum because you have to be Pretty sure that there's going to be Some demand before you you inscribe an Nft whereas on ethereum you know we get Like a million new low effort projects Essentially every day okay and finally Bitcoin nfts are for the most part Static objects whereas ethereum entities Can be extremely Dynamic basically Bitcoin doesn't really have Smart Contracts the way you might be used to Seeing on ethereum okay and so you can't Really manipulate nfts you can't make Them change over time stake them with All these complex rules and so on Bitcoin what you're really buying is a Static object for the most part which Means that it might be better suited for Something like art than it would for you Know complex gaming okay so with all That said let's talk about why this is a
Big deal and how fast it can scale okay So to put it simply it's a big deal Because Bitcoin is the largest most Secure and wealthiest blockchain in the Space it's still by far the most Well-known name in the public eye it's The least likely to get regulated I mean There's like a million things I can say Here that would make a Bitcoin Maxi Blush but the point is that it's still The king and now the door is wide open For nfts to exist and evolve in that Ecosystem in a way we've never seen Before okay and these are not you know On a layer two or side chain these are Fully on chain nfts more on chain than Most ethereum nfts and they're basically Satoshi's okay so they're as bitcoiny as Bitcoin nfts can get and so this isn't a Video on some random micro cap alt chain That is doing like some experimental Thing with nfts where you got to be like This kind of seems like a chill uh no This is Bitcoin okay and if you can have Bitcoin entities then you will have Bitcoin nfts and a lot of them and Finally well how do I say this there's a Lot of rich people in Bitcoin okay a lot Of millionaires and billionaires that You and I have never heard of and some Percentage of these people may be open To the idea of nfts but never really Wanted to engage in any other chain I Don't know what that percentage is but
They exist and so there's this untapped Wealth that might now be coming into Nfts and that might make some Bitcoin Nft prices reach insane Heights you know Sooner than a lot of people think but at The same time it's not going to happen Overnight okay because you know remember This whole thing kicked off just in the Last few weeks and it's still very raw Okay to buy an inscription today you Still have to one run a full Bitcoin Node which could take 24 hours uh two You have to use a command line for the Actual wallet because most you know Major Bitcoin wallets don't use ordinal Theory and then three you have to buy it From someone through Discord because There still aren't any marketplaces so To be absolutely clear if you like to be On the bleeding edge of something and You don't care about the inconveniences Then this is for you but if you're like Most people and you don't want to go Through all these hoops just to buy Something well then you might have to Wait a little while but keep in mind That there are already a lot of people Working on marketplaces and wallets and Galleries for example one Gallery I've Been using is this one one called rare Ordinals.art which gives you sort of a Curated view of what they consider to be You know the most important ordinals as They come in and then you have ordinals
Bot which literally just came out you Know a few days ago and makes it easier For you to make Bitcoin nfts so bottom Line as soon as they get a real Marketplace and an easier wallet then I Do think activity is going to explode And here we have DOTA who is an nft Founder and someone who's been going Pretty deep on ordinals and he says here How long until a light wallet exists Well it's being worked on I don't know But probably a couple of months and then How long until trustless trades in a Marketplace and he expects this to be a Command line tool within 60 days and Then once those come out then you'll Start hearing top creators launching Things on bitcoin so maybe you know People and artists like that and then You're just gonna see ludicrous price Tags being thrown around which then gets More creators to come aboard and then You're off to the races now with all That said one last piece of advice be Careful about the narratives that are Being thrown around to any specific nft I recently made this tweet about how you Know people are starting to tell all These stories around the nfts that They're inscribing and why they're the First to do whatever and some of these Will pump because the average collection Size on bitcoin tends to be like 100 or 200 nfts which is a lot easier to pump
But just don't lower your standards when You're buying into these be aware that Some of this is just people trying to Build narratives out of nothing and just Generally be careful alright guys thanks For watching I'm really excited to be Able to talk about Bitcoin nfts going Forward I think it's a grounds for Experimentation and there's gonna be a Lot of twists and turns in the story so If you want to follow that don't forget To subscribe so take care and I'll catch You at the next video
