2 Reasons Why Bitcoin Ordinal is "Positive" for BTC: Grayscale

Sequence numbers have been a controversial topic within the Bitcoin community, but crypto investment firm Grayscale says there are two main reasons to be optimistic.

According to cryptocurrency investment firm Grayscale, the Bitcoin (BTC) ordinal - also known to some as the Bitcoin NFT - could reignite developers' enthusiasm for Bitcoin and increase mining fees.

In an April 27 "Market Byte" blog post, the company suggested that Ordinals offers two key benefits for the growth and development of the bitcoin ecosystem.

The first, according to Grayscale, is a significant increase in fees paid to miners, which has already occurred since the protocol was launched in January. "The advent of serial numbers has led to an increase in the total fees paid to miners [...] This may establish a sustainable baseline level of transaction fees to incentivize miners." Grayscale believes this will ensure "continued network security throughout the life of the Bitcoin network."

According to Cointelegraph, more than $600,000 was paid out to bitcoin miners in less than two months after the launch due to fees incurred by Ordinal inscriptions alone. As of press time, that figure has now surpassed the $6.5 million mark.

The investment firm also believes that Ordinals and the "speed of NFT adoption" could also attract new bitcoin users and inspire more growth in the bitcoin network. "We believe the emergence of Ordinals could foster a growth-oriented community and culture to support the Bitcoin network."

On April 30, Ordinals set a new record, topping 300,000 daily inscriptions. Around the same time, the number of bitcoin transactions was nearing a peak not seen in years, according to blockchain data firm IntoTheBlock.

The rapid rise of Ordinals has been a controversial topic in the broader Bitcoin community, with Bitcoin extremists widely criticizing it for deviating from Bitcoin's original purpose as a peer-to-peer electronic currency and clogging up valuable block space.

One such critic is Blockstream CEO Adam Back, who has made numerous comments in which he declares ordinals to be "useless" and claims he "prefers bitcoin as a currency". .