Summary
TLDR: The Bitcoin halving will not affect Ordinals inscriptions or BRC-20 tokens on the chain. The launch of the Runes token protocol may impact interest in BRC-20 tokens. Demand for Bitcoin-related assets and Ordinals is expected to increase after the halving, leading to potential price surges. The Runes protocol, developed by the inventor of Ordinals, may create new assets on the chain and increase fees for using the network. This could make Bitcoin assets more exclusive and impact the broader demand for Ordinals.
Key Points
1. The Bitcoin halving refers to the reduction in mining rewards, which slows the supply of new BTC entering the market and tends to lead to an eventual price surge. This event will not affect on-chain Bitcoin assets like Ordinals inscriptions or BRC-20 tokens, as Bitcoin will continue producing blocks as usual.
2. The launch of the new Runes fungible token standard, associated with the Bitcoin halving, has seen a surge in demand for Ordinals collections in recent months. Projects like Runestone, offering upcoming Runes token drops to holders, are experiencing significant growth in value.
3. The introduction of the Runes protocol, developed by Casey Rodarmor, the inventor of the Ordinals protocol, could potentially impact the economics of Bitcoin and create new assets on the chain. Demand for Runes tokens is expected to drive up network fees in the short term, affecting the creation and trading of Ordinals projects.