An official Ordinal collection by El Salvador could accelerate Bitcoin’s progress and bring unique benefits to investors.
This is an editorial by writer, former trader and art dealer Stephen Hay.
I am a long-time Bitcoin user and I am preparing to move to El Salvador in 2023. Like many Bitcoin enthusiasts, I want to be a part of the amazing changes happening in this country. And I would like to share some ideas that I strongly believe have the potential to accelerate these changes.
Similar to the concept of Volcano Bonds, this idea uses Bitcoin-linked assets to raise funds for the construction of Bitcoin City and other worthy projects. However, unlike bonds, these relatively simple assets impose no legal or financial obligations on the state. They are simply created and sold on the free market.
My idea revolves around something that many of you have heard: Bitcoin ordinals. This new protocol, Released in January 2023, allowing the creation of “Bitcoin NFTs” linked to a single Satoshi. These special Satoshi, known as “inscriptions,” are bound to data permanently embedded in the Bitcoin blockchain. This data can take the form of images, text, video, etc.
Only a few months after its creation, this new form of digital asset has already received significant investment. At least $21 million in transaction volume across six major marketplaces and additional deals that take place over-the-counter.. Galaxy Research Estimate The Ordinals market is projected to grow to a total of $4.5 billion by 2025. This figure could prove conservative, especially if the government of El Salvador becomes a formal participant in the field.
Already, famous luxury goods manufacturers such as Bugatti and Asprey have joined Ordinals. If private companies are expected to achieve millions of dollars in sales in this new market, how much more can sovereign nations achieve? Ordinals markets mature and begin to attract mainstream investment. Over time, it seems certain that historically significant collections will reach a valuation that reflects their importance and rarity.
My suggestion is for the government of El Salvador to continue to successfully implement new ideas by releasing an official Bitcoin Ordinals collection. Perhaps such a collection might consist of art and photography highlighting the country’s natural beauty, architecture and culture. It may also feature a scan of Such inscriptions may bring certain benefits to the owner, such as discounts on government service charges. The purchase of government inscriptions may even form part of the Citizenship of El Salvador (CBI) program with future investments. The possibilities are virtually endless.
Furthermore, we believe the potential benefits are high and the risks are low and manageable. I believe the goodwill of the Bitcoiners and the world’s interest in El Salvador’s rapid improvement will lead to great demand for what has been called the “national digital art treasure”. I believe that such efforts will only greatly benefit the people of El Salvador and the global Bitcoin community if the technical and creative aspects are handled correctly by the relevant professionals.
This is a guest post by Stephen Hay. Opinions expressed are entirely his own and do not necessarily reflect those of his BTC Inc or Bitcoin Magazine.