After advancing all the way, BRC-20 began to weaken. For the market itself, is this just a short-lived meme carnival, or is it Magic that has not been truly understood by the Crypto world? For investors, is this an excellent entry opportunity, or is it a signal before the bottom?
At 21:00 on May 12, LK Venture and MarsBit held a Twitter Space event with the theme: "BRC-20 and the next step of BTC ecology". MarsBit partner Shang Silin, as the host of the online dialogue, and builders from institutions, crypto communities, and investment research, discussed and shared their views on topics related to the BRC-20 market and Bitcoin ecological construction.
Due to the high density of dialogue information and the length of the text, for the convenience of readers, the text record is divided into two articles: BRC-20/Meme currency market judgment, and new ways to play Bitcoin ecology. This article is the first part, mainly discussing asset trends.
The following is the text record.
Shang Silin: Hello everyone, I am Shang Silin, host of Twitter Space today and partner of MarsBit. In this event, we were honored to invite 6 early evangelists and investors in the Bitcoin ecosystem, they are LK Venture Chief Analyst Jasper Canghaishibei (@hijasperNG), LK Venture Researcher Gavin (@BtcingGavin), Shuidi Capital Lianchuang Jademont (@shanshan521), Ordinals OG Xiyu (@ohxiyu), independent investor dbj (@lingboweibu319), and Smart Bitcoin Labs Lianchuang Andy (@AndyTianWeb3). Thank you for your support and participation.
In the past period of time, BRC-20 has become the focus of the encryption industry, bringing very obvious wealth opportunities. Some investors who participated in the BRC-20 mainstream currency may have received a return of 70 times or hundreds of times. How the market will develop next and what opportunities can be ambushed have become topics of concern to investors. In addition, with the in-depth adjustment of the BRC-20 sector in recent days, the leading coin ORDI has dropped from $29 to $12, coupled with market fluctuations, whether the overall trend of the BRC-20 sector will undergo drastic changes in the future has also become a hot topic in the community.
In addition to the BRC-20 market, the market is also more concerned about the Bitcoin domain name, Lightning Network, and new opportunities and new ways of playing the Bitcoin ecosystem. When I was talking about the next bull market with my friends, everyone thought that the market value of Ethereum would definitely exceed Bitcoin, but after B2C-20 came out, I personally think that this topic may need to be discussed again.
Next, let us officially start today's topic discussion. First of all, each guest is invited to make a brief self-introduction. Please Xiyu first.
Xiyu: Hello everyone, I am Xiyu. I discovered Ordinals while researching the market at the beginning of the year and subsequently wrote some tutorials about it in February. In fact, I am also sharing while learning, and I can’t say how professional I am. I hope I can discuss and learn more with you today.
Shang Silin: It was actually quite early to enter in February, thank you Xiyu. Next, let's invite Jasper, chief analyst of LK Venture.
Jasper: Hello everyone, I am Jasper, chief analyst of LK Venture. The chance for me to come into contact with BRC-20/Ordinals was through my colleagues during a meal. Because we are doing primary investment, primary investment must embrace innovation (of course, secondary investment must also embrace innovation), so we participate in the market with the mentality of "buy first and research later". After research, it is found that this can not only bring about new applications, but also increase the income of miners. Therefore, I personally began to express my views related to BRC-20 on Twitter one after another.
Shang Silin: Thank you Jasper. Welcome to follow our speakers on Twitter. If you go back to when everyone paid attention to and recommended the BTC-20 sector, it is actually quite interesting, and you can see each investor's sensitivity to emerging assets. We often talk about wealth codes. In fact, wealth codes exist on Twitter posted by friends who are keen on new assets.
Next, please invite dbj, who has put forward relatively sharp views, and also has some criticisms and suggestions on the BTC-20 ecology.
dbj : Hello everyone. I entered the currency circle in 2017. I am a businessman, and many of my ideas belong to the thinking of the traditional market, which is not applicable to Crypto, so I lost a lot of money in the early stage. After that, through continuous introspection, I gained a new understanding of the market in an epiphany.
Regarding Ordinals, let's say I found it in the plan. Because in February, I felt that the Bitcoin network might have an opportunity. At that time, all I could think of was the Lightning Network, so I followed the vine and touched Ordinals in early March. At the beginning, I paid attention to NFT. After B2C-20 appeared, my eyes lit up, and I recognized this as the outlet.
Shang Silin: Thank you dbj. Next, let Jademont, the co-founder of Waterdrop Capital, make a brief self-introduction.
Jademont : Hello everyone, I am Jademont, a joint venture of Waterdrop Capital. I started out in mining, and started to participate in primary market investment in 2017. At the same time, I have continued to participate in BTC mining, so I pay more attention to the ecological development of Bitcoin. As for my views on Ordinals, I will explain them in detail later in my speech.
Shang Silin: Alright, next I invite Andy, co-creator of Smart Bitcoin Labs.
Andy : Hello everyone, I entered the currency circle in 2017 and am currently the largest miner of the global distributed storage network Filecoin. We have a small group within our team that looks at new opportunities and areas. Throughout last year, our main energy was devoted to the ZK track. In early February of this year, we saw Ordinals and found that it is of great significance. It can change Bitcoin from a purely financial value network into a data value network (each Satoshi can contain 4 megabytes of data), and the data value is very large. A terrible value, so we quickly established Smart Bitcoin Labs, specializing in the ecological development based on Bitcoin.
Shang Silin: We took some time to ask the guests to introduce themselves. Next, let’s cut to the first topic and quickly discuss the market of the BRC-20 concept. From the skyrocketing to the deep adjustment in the past few days, what factors will affect the trend of ORDI? What assets can we use as an analogy with ORDI? Please Xiyu answer first.
Xiyu: First, can the BRC-20 itself be upgraded? There is no doubt that it is just a document, just a standard, and it can definitely be upgraded.
The second point depends on the support of large CEXs such as OK and Binance. I am not very familiar with OK, but I am quite familiar with Binance. Binance will definitely list NFT, and has been researching and developing it. The explosion of BRC-20 was unexpected. As for whether such assets will be launched, it mainly depends on the decision of the boss, but the team will deploy the technology in advance.
The third point is that ORDI is actually also affected by the Meme coin sector. At present, ORDI is trending well. If Bitcoin makes a deep correction next, the popularity of the sector may disappear, which will eventually affect the price of ORDI. Because it's both about Bitcoin and about Meme.
Shang Silin : I have noticed that OK started to plan this matter very early. But it may not be the same as the Gate strategy. Gate is to open transactions directly on the exchange in the form of data regardless of the situation. In contrast, OK and Binance are more inclined to support transactions in a native way (in the wallet). I'm not sure if this kind of strategy will lower everyone's expectations, because the Liquidity of the main station is higher than that of the wallet?
Xiyu: The difference between OKX/Binance and Gate lies in their different positioning of the main site. Gate's main income depends on altcoins. As long as there is a certain amount of daily activity or popularity, they can directly list the coins.
Compared with Gate, the relationship between OKX/Binance and the project party is different. If BRC-20 can be directly listed on the main website, this will definitely break the original currency listing pattern. Taking Binance as an example, before the listing, Binance Labs may invest in the project, and secondly, it may not necessarily be listed after investing, and it needs a certain interest relationship to be listed. Unless it is an asset like UNI, which exploded back then.
That is, if BRC-20 is directly listed on the main website, it is equivalent to breaking the previous currency listing pattern, which will greatly affect the brand and interest relationship. Therefore, I think OKX/Binance will deploy the technology in advance, but it will not be available for the time being.
I saw Xu Mingxing's speech yesterday, and he actually gave a statement that can advance or retreat. They still depend on traffic and popularity, and they are also worried that if the currency crashes, word-of-mouth will be affected, they will have scruples, and they will be more cautious. Because there is no project party after all, it is not easy to find the direct person in charge.
Shang Silin: Thank you Xiyu. Let Jademont talk about it next.
Jademont: I think Ordinals is far from the "wave" as others say, or its market is far from over. First, Ordinals is very innovative; second, it does have a new narrative. We know that Bitcoin is the absolute leader in the encryption industry, and everyone defines the narrative or positioning of Bitcoin as digital gold.
So what are Ordinals? In fact, it is mainly to exert some value on the smallest unit of Bitcoin and perform some creations. What's this like? Like gold jewelry. When we go to a gold store to buy gold, we can buy gold bricks or gold bars. No matter which type, its price is strictly calculated and sold according to the RMB per gram. Going back to Bitcoin, no matter how many Satoshi you buy, you end up paying the Bitcoin price. But if you buy gold jewelry, such as a gold ring or a gold necklace, then its price must be plus a processing fee on top of the basic price of gold. It is even said that if you buy some very exquisite gold jewelry, its price will increase several times, which is normal, because the processing fee is relatively expensive, or the labor cost it bears is relatively expensive.
In other words, Ordinals has a reserve price, and its reserve price is the price of Bitcoin. At the same time, its upper limit is relatively high, because you can have a lot of room to play on it.
You can say that BRC-20 Meme coins are a wave, but Ordinals themselves are far from going far. With the financial, human and intellectual resources of the entire Bitcoin market, there are still many things that Ordinals can do.
When I participated in a seminar in Hong Kong this afternoon, I learned that many people are making applications based on Ordinals, which means that not only the Bitcoin ecosystem, but Ordinals itself may also have an ecosystem, which is different from the so-called BRC-20 The key points of Memecoin. Because I am doing first-level investment, I don't pay much attention to the K-line. Purely from the perspective of a first-tier investor, I think it solves some new problems and creates some new asset classes. Logically speaking, the market will definitely not ignore it, and it will continue to be hyped or priced. As for its price trend, it depends on what kind of products the developers of the Ordinals ecosystem make
Shang Silin: Jademont thinks the story around Ordinals is just beginning. How does dbj understand Ordinals?
dbj : Everyone still has doubts about BRC-20, which is very good. Only doubts can lead to development. Most people regard BRC-20 as a Meme, which is the one I hear the most. But I think it is a consensus first, and secondly has certain Meme attributes. It was born on the basis of bits, and it is considered an ownerless currency without any project parties. Although there are people who deploy, the other party does not have any advantages. Mint together is a relatively open and fair way of distribution. What is the greatest significance of this distribution method? I think the biggest meaning is a gradual consensus. We all know that consensus generates value, but the process of reaching consensus is very difficult, and if the consensus is to continue to expand, it needs the right time, place and people.
It just so happened that the birth of ORDI and its current development were enhanced in "Masterless". It is no longer a simple meme coin. If it is a meme coin, I believe its voice will not be as loud as it is today.
Back to the market topic that the host just talked about. I think, on the one hand, there may be some profit taking, but are there really that many? I put a question mark. Some people sold it at a very cheap price, and they didn't expect it to rise so high. There are also some people who treat it as a meme coin, which may have been washed off. But there is also a class of people who believe that ORDI has intrinsic value and still hold it. I believe that as the Ordinals protocol grows, it will definitely benefit from new traffic and new funds. Because it is a leader, it is bound to attract overflow funds. Therefore, I don't think it is necessary to be so pessimistic, and even think that its appearance may siphon the Liquidity of Ethereum.
Shang Silin : The emergence of new things will basically face controversy. Next, let Andy talk about his views.
Andy : Let me quickly add to the aforementioned question about exchanges. BRC-20 is different from Ethereum ERC-20, the latter completes the ledger through smart contracts, and everyone only needs to read the latest ledger, while BRC-20 is similar to Bitcoin, its bottom layer is recorded in UTXO transfers, so Someone needs to synchronize and backtrack all the transaction information to get the latest data. So the best one so far is unisat, and most people also take unisat. I also communicated with the founder of unisat this afternoon and got some information. Currently, OK and Huobi are connecting, and they should all complete the underlying technical preparations within a week.
Back to the question about the market. My conclusion is: bullish on Ordinals, and bullish token ORDI, but bearish on the current BRC-20. The reason why you are short on the current BRC-20 is mainly because the current BRC-20 are some Meme coins, most of which are gusts of wind. But why is it said to be bearish now? Because I know that many project parties at home and abroad are currently working on some BRC-20-based projects, and plan to issue coins in the later stage. These are Utility tokens.
Why be bullish on Ordinals? Let me share my own experience. At the beginning when everyone was on freemint, I actually missed it and thought it was worthless. But then I bought some when it was around 1U, and increased my position when it was close to 2U. Why choose to buy, mainly because of three points:
First, in addition to the FOMO sentiment of the community, I see that capital and technology have already begun to be invested in the ecology. It is not a wave of things, but can be continuously iterated; second, from the perspective of consensus, ORDI already has a very strong consensus; third, from the perspective of the market, as more CEXs choose to put on the shelves ORDI will usher in a wave of gains in the later period. Of course, this is some short-term behavior. But as more speculators pour in and the chips change, the market will gradually precipitate value investors. My guess is that these value investors will promote community development, and ORDI may become an Ordinals governance token, and its value may suddenly change from a token with no intrinsic value itself to a token with governance value. Its value may increase several times. Don't look at the Bitcoin ecology from the perspective of the Ethereum ecology. The entire Bitcoin ecology is actually driven by a native consensus.
