Tesla CEO Elon Musk, known for his influence in the cryptocurrency space, accidentally drew attention to Bitcoin Ordinals, an innovative alternative to traditional non-fungible tokens (NFTs), in a recent podcast program he participated in. In an episode of The Joe Rogan Experience, Musk criticized NFTs for their dependence on external URLs and suggested encoding images directly on the Blockchain. Here are the details…
Elon Musk criticized NFTs
Musk’s candid remarks resonated with Bitcoin enthusiasts, who argued that his comments underlined the value of Bitcoin Ordinals, a concept that has gained traction since its launch in January. The development of Bitcoin Ordinals was made possible by the Taproot soft fork in November 2021, marking a significant step in the evolution of NFTs. Cryptocurrency analyst Will Clemente appreciated Musk’s perspective, noting that the number of Ordinals posts on Bitcoin’s blockchain has increased and now exceeds 38 million. This impressive figure highlights the increasing adoption and importance of Bitcoin Ordinals within the crypto community.
Rohun “Frank” Vora, creator of NFT projects DeGods and y00ts, expressed support for Musk’s stance, describing Ordinals as an elegant solution to one of the most common criticisms of NFTs. By recording crypto assets directly on the Blockchain, Bitcoin Ordinals addresses concerns about the longevity and accessibility of NFTs even if the hosting platform goes bankrupt. The developer behind Bitcoin Ordinals, known as “Leonidas,” was so inspired by Musk’s comments that he posted a 19-second video of Musk onto Bitcoin’s Blockchain, at block 814,773. This gesture is not only a symbolic endorsement of the concept, but also indicative of its practical application.
Musk remains NFT skeptic
Musk’s skepticism towards NFTs is not new, as he previously described them as a sign of mental illness in a meme. However, the security and longevity offered by Bitcoin Ordinals are the critical distinction that makes them a more attractive choice for NFT enthusiasts. While Musk’s comments may apply to some NFT projects, such as those moving to on-chain storage on Ethereum, Bitcoin Ordinals has emerged as a solid solution. Larva Labs, creators of the popular Cryptopunks NFTs, moved their assets on-chain in August 2021, allowing them to be protected and accessible through Ethereum clients.
Additionally, Metagood, the team behind Ethereum-native OnChainMonkeys, announced their intention to move their NFTs to Bitcoin. While they did not directly address the “JPEG dilemma,” they emphasized that high-value NFTs will thrive on the Bitcoin Ordinal protocol due to its superior design for decentralization and security. Despite these promising developments, Ethereum continues to dominate the NFT market with 84% of all transaction volumes, according to CoinGecko data from June. Bitcoin and ImmutableX rank second and third with market shares of 11% and 2.5% respectively. This suggests that although Bitcoin Ordinals offer an attractive alternative, Ethereum remains the primary hub for NFT activity.