BRC-20 Tokens The New Bull Run?
As of the last few months we have seen bitcoin go from 16k to near 30k almost a 100% gain which clearly would call for a bull run. However no call has yet to be made and this run is feeling a bit different then the last bull runs.
It seems like much of it has sparked from a new BRC-20 token so lets take a moment and review what a BRC-20 token even is.
Development
on March 8th of this year BRC-20 tokens where created for the first time by twitter user Domo. It employs the new Ordinals and Inscriptions that were added to bitcoin back in January which allowed users to "inscribe" text, audio, art, video etc into a individual satoshi. Ordinals was created by a person by the name of Casey Rodarmor. In short it allows BTC to have NFT like functions that are directly on the Bitcoin blockchain.
The Battle
While some are loving the new features and pumping out meme coin after meme coin and a vast amount of other trash in a bid to get rich quick (because seriously that's what these other projects are) I mean take a look at PEPE roadmap lol
It's a total joke there's legit nothing to it. It's still showing in Phase 1 of which it's stretch goal was 1,000+ holders lol goes to show you how non ambitious the project was.
While this does bring some new cool features to BTC for sure it also comes with more transaction volume of which is skyrocketing the fees on BTC. It for a time hit $30 and has since shrunk back to $14 as it feels like the mem trading of PEPE is already over.
While I get both sides of the argument it's clear that high fees like this ALWAYS kill any kind of bull run but perhaps that puts things into check and is a good thing so MEME junk projects like PEPE don't really amount to anything.
The scary part if how many people are willing to throw crypto and money around like it's nothing into these random projects that IMO contribute nothing to the health and overall benefit of crypto. But maybe I'm just a old fart and I'm thinking wrong on that?
New Possibilities
It should be said that with any new tech and innovation such as adding NFT functions and layer 2 tokens to the bitcoin system via a new update will of course bring out a lot of scams, junk and other things. It's something we see happen time and time again and is a huge part of the bull run.
However from that we also get many legitimate projects, new innovation and growth. It truly seems to be the nessasrly evil for progress in the crypto world. But really it applies to all advancements. The greatest time of tech advancements is during war and we are also seeing that take place now in terms of military spending, new hypersonic missiles and more. Heck I even saw that a nuclear powered engine will become a real thing in the next few years to take people to Mars in 2 months instead of the current 9 months that's expected.
This increase in tech and new possibilities is what starts bull runs and gets development to happen. In a way I agree with the BRC-20 supporters that bitcoin or someone needs to find a way to make the system expand and be able to take on more while keeping fees at reasonable levels and that those higher fees are most likely only temporary. For sure though mining BTC just became a whole lot more profitable and we are seeing that by the drastic increase in mining power.