More and more NFTs on Bitcoin, with possible negative consequences

A lot of lovers of altcoins see Bitcoin as some kind of dinosaur. They think the network is too one-sided, too slow and too expensive – in other words, too old. But at the same time, we are constantly working on new possibilities for the network. For example, you can now spend Non-Fungible Tokens (NFTs) on the Bitcoin network. Apparently it’s already a popular one possibility.

NFTs now found on Bitcoin network

Since the Taproot upgrade, much more is possible with the world’s largest blockchain. The brand new service Ordinals made good use of this. This service has been letting you mint some kind of NFTs on the Bitcoin network since January 21. Blockchain analytics service data Dune shows that it has already grown rapidly in popularity.

It reignited the long-standing debate around block size and Bitcoin’s purpose. Many Bitcoin maxis want the network to remain “pure” and be home exclusively to the first cryptocurrency.

Also, the possibility of NFTs on Bitcoin sparked renewed discussion about how big the block size should be. The network was of course set up by Satoshi Nakamoto, but it must be managed by a team of developers. NFTs on the network would mean that the network would become more expensive.

Ordinals creator Casey Rodarmor stated to Decrypt that he is not in favor of increasing the block size. Bitcoin blocks must be completely ‘full’ before the minimum network commission can exceed the minimum. Increasing the block size would prevent this from happening as quickly.

Bitcoin’s network costs are already rising

It remains to be seen whether the impact on transaction costs is negligible. The average transaction fee has since risen from $0.78 to $1.8, according to data from YCharts. That amount has not been this high since December 27. It is already causing resistance from Bitcoin proponents.

However, the increase in transaction costs may have been due to an increase in activity. After all, the bitcoin price has risen, and the turnover of miners has also increased sharply.

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