Author: inpower Wang Jun; Source: Crypto Market Observation
The inscription market is very popular these days, with people getting on and others getting off.
Even many senior figures in the encryption circle don’t understand it~
This article will talk about the logic of the inscription to put things in perspective.
Welcome everyone to discuss and exchange. If you think it makes sense, please follow/like/repost~
Many people compare the current inscription market to Dogecoin two years ago.
I admit that the inscription has little use value, but that doesn't mean it has no value.
01 Who is pushing for inscriptions?
To put it directly, it is the major miners.
Especially the mine owners listed on the US stock market.
The narrative of Bitcoin more than a decade ago was that of a decentralized payment system.
The narrative of Bitcoin over the past decade has been that of electronic gold, the inflation buster.
However, as the Bitcoin output rate gradually halved, miners who originally occupied an important position in the Bitcoin ecosystem have become increasingly less influential in the ecosystem.
The narrative now being fed to Wall Street is:
The Bit ecosystem is an important blockchain settlement layer, and miners are the settlement infrastructure!
You must know that in the past few years, more than half of all Bitcoins have stayed in wallet addresses.
There is no transaction settlement, nothing~
If the revenue of the mining farm depends only on the rise of Bitcoin, what will Wall Street investors think of the valuation of the Bitcoin mining farm? How many times should PE/PS/PB be determined?
Therefore, the mining farm must start transactions in the Bit Ecosystem.
You know, even if the inscription ecology becomes so popular and transaction fees are so expensive, transactions will only account for 25% of the miner's income now.
If miners cannot build up the Bitcoin ecosystem, the narrative of the entire mining industry will be affected.
02 Being profit-driven is a good thing
Don’t think that being promoted by interested parties is a bad thing.
This is an idea that is typical of idiots who don’t understand business.
Once an incident involves industry interests, it usually lasts a long time.
For example, Jewish CX diamonds have almost started to subside until we Henan people made artificial diamonds at cabbage prices in the past two years. 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, Inscription will not be a gust of wind.
It is a major matter involving the long-term development of the industry.
Anyone familiar with the crypto community knows that apart from mining and exchanges, there are basically no serious businesses running now.
The Ethereum ecosystem is in such a dead state. Can the Bit ecosystem prosper in the short term?
So it can only be supported by donations from mine owners.
This logic is actually the same as Coca-Cola’s brand advertising.
You must know that if the narrative is not established and the PS is doubled, then the mines of the listed mining companies for a year will be in vain.
What is the size of the inscription market now? There is not even a market value for a listed mining company (such as MARA/Riot).
03 It is important to safeguard the interests of mine owners
A few days ago, a big developer was dissing Inscription.
From a technical point of view, he is right. Inscriptions will indeed cause congestion on the bit network.
But everyone should know that there are many volumes in the Bitcoin mining industry now, and most mines are not profitable.
With Bitcoin halving, competition is only going to get fiercer.
What will happen if a new ecosystem is not established?
Small mine owners are gradually closing down, and large mine owners are getting bigger and bigger?
This also decentralizes the yarn!
If the top few large mining farms control more than half of the computing power, then Bitcoin is a centralized asset.
Therefore, I judge that after the participants in the Bit Ecosystem understand the nature of this problem, they can only rely on inscriptions before other ecologies are established.
04 Can I buy inscriptions on other chains?
When Bitcoin miners are working hard to build an ecology.
Other main chains have also launched their own inscriptions.
The most essential difference between these inscriptions and those of BRC20 is:
Only the inscription on BRC20 is related to the interests of the mine owners!
They will maintain industry order and achieve long-term development.
Other main chains without listed mining companies are essentially the same as Dogecoin because there are no restrictions from interested parties.
I have been very busy lately, so there are few pictures in this article, so please forgive me.
