Recently on social media there's been a lot of buzzing regarding the ability to build on the #BTC Blockchain. I've tried my best to look into it a little and to be honest, it's really dicey and also very interesting... In this post, I'm just going to give my own personal opinion. This is not a financial advise of any sort. Before you YOLO your cash, do you own research and be sure.
What are BRC-20 tokens?
BRC-20 tokens are tokens created on the Bitcoin blockchain via the Ordinals protocol. The total market cap is around $5billion which is considerably small compared to the ERC-20 tokens market cap (>$150 billion).
Currently, there are less than 50 tokens on the BRC-20 chain and I'd say they look pretty good regarding Tokenomics and some use cases.
One can easily spot the advantages and disadvantages of this BRC-20 stuff. The biggest advantage I've seen online so far is BTC is a good store of value and being an OG crypto, besides that it's nothing special. A lot of hype coming in is on the assurance that "many #Bitcoin maximalists would definitely come in with their huge bags to buy some good tokens. It's gonna pamp bro, let's get some😂". Yes that's true if and only if they see that it's safe and secured, doesn't glitch and congest the network as it's doing lately.
Really there are better networks out there with fantastic open source codes, good speed and with lesser transaction fees. Just as there are issues with the Bitcoin Blockchain technology regarding fees and speed, this same issues affects the BRC-20 platform too and didn't go away. Unless these are fixed, other technologies like ERC-20 and Binance chain will still look more attractive.
In conclusion... There's nothing special about the BRC-20 tokens and NFTs regarding the technology, they still got the same Bitcoin slow and high fees problem. However, looking at the price potential it has if it works out well, it'll be astronomical. There are maximalists with tens of millions of dollars set aside for something like this to come mainstream. If you wanna buy some, always look at Tokenomics 🙂 and community. I see some having freaking low supplies 😩. To be honest, they look pretty attractive. And definitely more are yet to come🙂.
Anyways do have a wonderful day ahead. I'll catch you on the next one.