With all the hype around BRC-20 tokens like $Ordi, Joshua Henslee made a video explaining why he believes this paradigm shift could lead to a block size increase. Check out the video via the link below.
Is Ordi token a black swan event?
The ‘black swan’ is a theory popularized by Nassim Nicholas Taleb in which he refers to unexpected events of a large magnitude or consequence and how they have repeatedly arisen through history.
Henslee begins this video by saying that he believes $Ordi, a BRC-20 token on BTC, is a black swan and that it will change everything permanently. He states his opinion that it “isn’t just another sh*tcoin” and that, unlike many other altcoins and initial coin offerings (ICOs) in the past, this one was a fair mint where whoever created it had to pay to mint the same way other users did.
Giving a little history of the token, Henslee tells us that on March 9, Twitter user ‘Domodata’ launched the BRC-20 token protocol and Ordi. The supply is fixed at 21 million; users can mint 1,000 tokens per batch, and 21,000 mints are valid in all. Minting costs nothing more than the BTC transaction fee (which has risen substantially due to all the recent activity). Roughly 60 days after the announcement, Ordi is trading at $27, an increase so huge that even Henslee, a computer science graduate, can’t do the math.
An experiment into "brc-20's" and fungibility on bitcoin with ordinals 1/x pic.twitter.com/9khKLbEPk6
— domo (@domodata) March 9, 2023
Since then, lots of BRC-20 tokens have been launched on BTC, and the network is completely congested. While small blockers try to say the network is working as intended, the reality is that this is an unmitigated disaster for the everyday user and has rendered BTC unusable as fees climb higher and higher. Even Binance had to suspend BTC withdrawals twice because of all the chaos.
In Henslee’s view, this is a permanent shift, and things will never be the same. On-chain, native trading is exactly what people want, and finally, BTC is being used as cash.
Henslee believes that the block size will likely increase due to all of this, and that could cause another fork. Interestingly, that has never happened with so many on-chain assets before, and he calls that a “nightmare.”
Is Henslee advising viewers to buy Ordi and other BRC-20 tokens? Definitely not, but he does find it all very interesting and thinks that, finally, hyperbitcoinization is happening.
Summary of this Joshua Henslee video
Roughly 60 days ago, Twitter user Domodata announced the BRC-20 token protocol and Ordi.
The Ordi token value has increased massively since then, and many others have been minted.
As a result of all this, the BTC blockchain has become unusable for everyday people. Fees are skyrocketing, and the network is congested.
Henslee believes this is a permanent change and that a block size increase is inevitable. Another fork is also possible as lots of time and energy has gone into keeping BTC blocks small.
Finally, we may be seeing hyperbitcoinization, a term coined by economist and Bitcoin thought leader Daniel Krawisz.
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