Why does the inscription of BRC20 keep rising?

The inscription market has been very hot these days, with some people getting on and some getting off.

Even many senior crypto experts don’t understand it.

This article discusses the logic of inscriptions to set the record straight.

Welcome everyone to discuss and exchange, if you think it makes sense, please follow/like/forward~

Many people compare the current inscription market to the Dogcoin market of the past two years.

I admit that the inscription has no practical value, but that doesn't mean it has no value.

01 Who is promoting inscriptions?

To put it bluntly, it’s the major miners.

Especially the mine owners listed on the US stock market.

A dozen years ago, the narrative of Bitcoin was a decentralized payment system.

The narrative of Bitcoin over the past decade has been electronic gold and an inflation buster.

However, as the Bitcoin output rate gradually halved, the miners who originally occupied an important position in the Bitcoin ecosystem have become less and less influential in the ecosystem.

The narrative being fed to Wall Street right now is:

The Bitcoin ecosystem is an important blockchain settlement layer, and miners are the settlement infrastructure!

You should know that in the past few years, more than half of the Bitcoins have remained in wallet addresses without moving.

There is no transaction settlement.

If the income of the mining farm depends only on the rise of Bitcoin, how will Wall Street investors view the valuation of the Bitcoin mining farm? At what multiples should the PE/PS/PB be determined?

Therefore, the mining farm must start transactions in the Bitcoin ecosystem.

You know, even though the inscription ecosystem is so popular and the transaction fees are so expensive, transactions now only account for 25% of the miners' income.

If miners cannot establish the Bitcoin ecosystem, the narrative of the entire mining industry will be affected.

02 It’s a good thing to be motivated by profit

Don't think that being pushed by interested parties is a bad thing.

This is a typical idea that only an idiot who doesn't understand business would have.

Once something involves industry interests, it will usually last longer.

For example, the Jewish CX diamonds. It was not until the past two years that we Henan people made artificial diamonds very cheap and their popularity began to fade away. This story has been told for hundreds of years.

Therefore, in order to safeguard the interests of the major mining industries listed on the US stock market, inscriptions will not be a passing fad.

But it is a big thing involving the long-term development of the industry.

Anyone familiar with the crypto world knows that apart from mining and exchanges, there are basically no serious businesses running.

The Ethereum ecosystem is in such a dead state, can the Bitcoin ecosystem succeed in the short term?

Therefore, it can only rely on donations from mine owners to survive.

The logic is actually the same as Coca-Cola’s brand advertising.

You know, if the narrative doesn’t stand up and the PS is half as much, then the listed mining company’s year’s mining will be in vain.

What is the current market size of the inscription market? It is not even as large as the market value of a listed mining company (such as MARA/Riot).

03 It is important to protect the interests of mine owners

A few days ago, a big developer dissed inscriptions.

From a technical point of view, he is correct. Inscriptions can indeed cause congestion in the Bit network.

But you have to know that the Bitcoin mining industry is very competitive right now, and most mines are not profitable.

As Bitcoin halving approaches, competition will only intensify.

What happens if the new ecosystem is not established?

Small mine owners are gradually going bankrupt, while big mine owners are getting bigger and bigger?

This also decentralizes the wool!

If the top few mining farms control more than half of the computing power, then Bitcoin will be a centralized asset.

Therefore, I believe that after the participants of the Bitcoin ecosystem understand the nature of this problem, they can only rely on inscriptions before other ecosystems are established.

04 Can I buy inscriptions from other chains?

While Bitcoin miners are working hard to build the ecosystem.

Other main chains have also launched their own inscriptions.

The most essential difference between these inscriptions and BRC20 inscriptions is:

Only the BRC20 inscription is related to the interests of the mine owner!

They will maintain industry order and achieve long-term development.

The main chains of other companies that do not have listed mining companies are essentially the same as Dogecoin because there are no constraints from interested parties.