The official Ordinals group from El Salvador can accelerate progress with Bitcoin and offer unique benefits to investors.
This is an op-ed by Stephen Hay, writer, former dealer and art dealer.
I have been working in Bitcoin for a long time, getting ready to travel and hope to move permanently to El Salvador in 2023. Like many bitcoiners, I would like to be a part of the amazing changes happening in this country. And I would like to share with you an idea that I strongly believe has the potential to accelerate these changes.
Similar to the concept of Volcano Bonds, this idea uses assets linked to Bitcoin to raise money to build a Bitcoin City, or any other worthy project. Unlike bonds, these relatively direct assets do not impose any legal or financial obligations on the nation. They are simply created and then sold on the free market.
My idea revolves around something many of you have heard of: Bitcoin Ordinals. This new protocol, Launched in January 2023It allows the creation of “Bitcoin NFTs” tied to one satoshis. Known as “patterns,” these private satoshis are linked to data that is permanently embedded in the Bitcoin blockchain. This data can take the form of images, text, video, etc.
A few months after its inception, this new form of digital asset has already received significant investment, with At least $21 million in trading volume in the six major markets And additional over-the-counter deals.. Galaxy Research estimates Ordinals market will grow to $4.5 billion in total value by 2025. This number may be conservative – especially if the government of El Salvador becomes an official participant in the field.
Already, famous luxury goods makers like Bugatti and Asprey are participating in the Ordinals. If private companies are expected to generate millions of dollars in sales in this new market, how big can a sovereign nation make? As the Ordinals market matures and begins to attract mainstream investment, historically significant collections seem certain to reach valuations that reflect their importance and rarity.
My suggestion is that the government of El Salvador continue to successfully implement the new ideas by issuing an official set of Bitcoin Ordinals. This collection may include art or photography that highlights the country’s natural beauty, architecture, and culture. Alternatively, it may contain scans of official documents related to new Bitcoin laws or plans for Bitcoin City. These inscriptions may confer certain benefits to their holders, such as discounts on fees for government services. Purchasing a government registration may form part of the Salvadoran Citizenship by Investment (CBI) program. The possibilities are almost endless.
Furthermore, I believe the potential gains are high while the risks are low and manageable. I believe that the good will of bitcoins and the world’s interest in El Salvador’s rapid improvement will lead to a huge demand for what might be called “national digital art treasures.” If the technical and creative aspects are handled properly by the professionals involved, I believe such an endeavor can only bring great benefits to the people of El Salvador and the global Bitcoin community.
This is a guest post by Stephen Hay. The opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc or Bitcoin Magazine.
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