Potential Challenges and Downsides of Bitcoin Ordinals
Of course, we’ve already seen the market for Ethereum NFTs take a massive drop in recent years, with the value of NFT collectables falling around 90% overall. While the technology isn’t going anywhere, the market quickly became saturated with low-effort artwork, aggressive marketing practices, and shady or abusive trading tactics such as wash trading to artificially inflate auction prices.
It’s safe to say that the market has taken a step back from NFTs and that this muted sentiment may also carry over to Bitcoin Ordinals as well for the near future.
Another issue with Ordinals is one of privacy and surveillance. By allowing unique identifying data to be inscribed on individual millionths of every bitcoin, the fungibility and pseudonymous nature of Bitcoin is arguably threatened.