Bitcoin NFTs are gaining popularity despite the fact that they can be divided amongst hardcore Bitcoin NFTs supporters. Punk 94, Ordinal Punks NFT sold Wednesday for 9.5 BTC or $214,000 on Wednesday. This was the largest amount paid for an NFT based on the most popular blockchain.
Another one was also available for sale at 4.2 ETH. This roughly translated to $95,000 at that time.
The Ordinal Punks NFTs are a spinoff from CryptoPunks NFTs, a popular NFT collection that is based on Ethereum. These are possible because of the Ordinals project which allows data to be inscribed on the Bitcoin blockchain. These can be JPEGs or any other data format.
100 pieces were included in the NFT spin-off collection. It sold quickly, with mints occurring in the first 650 Bitcoin blockchain inscriptions.
Bitcoin NFTs could inspire the development of the network
Three weeks ago, Ordinals were launched. They have proved popular in the NFT space. However, hardcore Bitcoin fans wonder if it is worth inscribing large files to the Bitcoin blockchain.
This move has led to bitcoin’s block size increasing, thereby skyrocketing its transaction costs. These proponents believe that the network should only be used for financial transactions. Others see the Ordinals protocol’s arrival as a catalyst for development that addresses the core problems of the blockchain, including its inability to scale and efficiency.
According to Sam Callahan (a Bitcoin analyst at Swan Bitcoin), there are risks. He spoke to Coindesk to note that “Insisting these inscriptions may impact other Bitcoin use cases such as payments via the Lightning Network if the demand for them is long-lasting. This could distort Bitcoin’s fee market and make it less open to monetary protocols.”
Ordinals was one of the first NFT protocols that can operate on Bitcoin. It lacks smart contracts which could support different applications. Taproot Upgrade, which took place at the end of 2021, made it possible to directly inscribe data on Satoshis, the smallest unit of Bitcoin.
NFT News Today published the article Bitcoin NFTs soar in price amid growing interest from collectors.