Will BTC fork over Ordinals? Joshua Henslee weighs in

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Ordinals have reignited debates that many BTC maximalists thought were dead and buried, such as how to scale the BTC blockchain and whether or not to raise the block size. In this video, Joshua Henslee considers whether they might cause BTC to fork again.

What will happen next on BTC?

Over the past few days, Henslee has released several videos updating us on the ongoing saga on BTC. He says he finds it addictive and is watching closely to see what happens next. He then walks us through the main scenarios that could unfold going forward.

Scenario one is a block size increase on BTC. Henslee thinks this scenario could be bearish for Bitcoin SV (BSV) because BTC already has the network effect, support, and financing from the incumbents. He sees resistance to this idea and doesn’t think it will be allowed to happen easily. However, if it did, it’s what big blockers have always wanted.

“If that happens, the world gets what it wants – big block Bitcoin,” he says.

The second possible scenario is a BTC chain split. This is the worst-case scenario for BTC and the best-case scenario for BSV. This will cause problems for exchanges and will create two camps and two chains with more utility on one. Henslee thinks back to when Bitcoin Cash split, noting how the division caused the price of both BCH and BSV to drop and might do the same for BTC and any new forks.

A third potential scenario is that they don’t do anything and just ignore it. That’s the worst outcome for BTC, Henslee says, because it will likely kill the chain. The demand for things like Ordinals and BRC-20 tokens has been proven, and they have some innate value as they are linked to satoshis. Despite people like Max Keiser labeling Ordinals and BRC-20 tokens “pollution,” the demand is there, and the genie can’t be put back in the bottle.

Henslee reiterates his view that all of this is a permanent change, and BTC Core won’t be able to just make it go away and label it spam. Entrepreneurs aren’t known for quitting, and there’s too much money being made by involved parties. Betting against it is a bet against human creativity, and that’s always a bad bet, Henslee reminds us.

“If they don’t increase the block size, then it’s BSV. BCH isn’t going to be in a position…their data carrier limit is 220 bytes,” Henslee says. That’s 5x BTC’s limit, but it’s not enough. “The boot came off the neck by an inch, and on BCH, it’s off by five inches,” he says, painting a vivid picture of certain parties’ control over BTC and BCH.

Once again, Henslee reiterates that all of this has happened organically, proving that this is what the market wants. While he sees a place for enterprise and government stuff down the line, this is what people want now, and it’s only getting started.

Summary of this Joshua Henslee video

• Ordinals and BRC-20 tokens have taken the BTC world by storm. BTC Core devs are scrambling to nix it, but it isn’t going to go away, and it’s clear the users love it.
• Henslee sees three possible scenarios going forward. Either BTC increases the block size, it forks into two or more chains, or BTC ignores it and hopes it dies down. Each outcome has various pros and cons for both BTC and BSV.
• This is a permanent change. BTC Core can’t wish this away, and it’s just getting started. Henslee is keeping his finger on the pulse and is trying to keep us updated as developments occur.

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