Bitcoin (BTC) ordinals — also known by some as Bitcoin NFTs — could rekindle developer enthusiasm for Bitcoin and increase mining fees, according to cryptocurrency investment firm Grayscale.
In an April 27 Market Byte blog post, the company suggested that ordinals offer two key benefits to the growth and development of the Bitcoin ecosystem.
The first, according to Grayscale, is a significant increase in fees paid to miners since the protocol’s inception in January.
“The advent of ordinal numbers has led to an increase in the total fees paid to miners […] which could potentially set a sustainable base level of transaction fees to incentivize miners.”
Grayscale argued that this would ensure “continuous network security throughout the life of the Bitcoin network.”
As Cointelegraph reported, less than two months after its launch, more than $600,000 was paid to Bitcoin miners solely from fees generated by ordinal inscriptions. At the time of publication, that figure now surpasses the $6.5 million mark.
Fees for enrolling ordinal NFTs on the Bitcoin blockchain. Source: Dune Analytics
The investment firm also believes that ordinals and “speed of NFT adoption” could also attract new Bitcoin users and spur further developments on the Bitcoin network.
“We believe that the advent of ordinal numbers is likely to foster a development-oriented community and culture in support of the Bitcoin network.”
On April 30, Ordinals hit a new record, with daily enrollments exceeding 300,000.
Around the same time, the number of bitcoin transactions was nearing a high not seen in years, according to blockchain data company IntoTheBlock.
Related: Magic Eden launches marketplace for Bitcoin Ordinals
The meteoric rise of ordinal numbers has been a controversial topic in the broader bitcoin community, which has been widely criticized by bitcoin maximalists for deviating from bitcoin’s original purpose as a peer-to-peer electronic currency and clogging up valuable block space.
One of those critics is Blockstream CEO Adam Back, who has made a series of comments declaring ordinal numbers “useless” and claiming he’s “more into Bitcoin as a currency.”
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