Crypto fans are constantly searching for new strategies to increase the returns on their investments. In the realm of cryptocurrencies, any knowledge may be useful, whether it comes from technical analysis or basic study. Because of this, the idea of Bitcoin ordinals is a fascinating discovery that might improve the whole cryptocurrency ecosystem.
But what are Bitcoin ordinals? They are, in essence, a method of classifying cryptocurrencies according to their market capitalisation. But it does more than just order the best currencies by market capitalization. Bitcoin ordinals employ a more complex method that considers the combined worth of all the coins in circulation.
Bitcoin ordinals are designed to measure cryptocurrencies' total economic effect rather than simply their market capitalization. Thus, coins having a higher supply but a lower market valuation might nevertheless have a big influence on the cryptocurrency ecosystem.
Let's take the case of two cryptocurrencies, A and B. The market cap of cryptocurrency A is $10 billion, and there are 100 million coins in circulation. B is a $5 billion market value cryptocurrency with a 1 billion coin supply. Due to its bigger market valuation, cryptocurrency A would often be ranked higher than cryptocurrency B. Yet, if we were to rank cryptocurrencies using Bitcoin ordinals, we would place cryptocurrency B higher as it has more coins in circulation overall.
Since it could result in more accurate assessments of cryptocurrencies, this idea has the potential to revolutionize the cryptocurrency economy. We can better comprehend the entire economic impact of each coin by taking into account the total value of coins already in circulation.