Images aren't causing the high fees, VC-fueled BRC-20 shitcoins are, and the fee-market incentives are broken. It's getting worse, not better. Let's dig in, there are solutions that don't break Bitcoin.
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I just don't understand who's buying these tokens? How are VCs turning their fee investment/cost into more money?
Has anyone ever met a person who's spent money on these? What's the pitch even?
My suspicion is that a lot of the volume could be wash trading, and if miners are linked to the VCs then maybe the high cost of minting is more than offset by people overbidding their fee rates in response.
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These are more great questions that need answers.
Perhaps the payday comes from a sort of Premine if you will.
I'm not sure how they get dumped, but wash trading seems likely too. But they're repeating the process more frequently, so there's got to be a payday somewhere.
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The miners argument doesn’t make much sense, at least into the medium term. If we think of x% of miners linked to the same VCs, all the increased revenue does is incentivise other (non linked) miners to come in and also compete for it. Though I see what you mean about other fees also bid up.
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Perhaps we can convince major shitcoin NFT outfits that ordinal ownership is less than they had on their own chains
This is my favorite option
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I disagree that the fee market incentives are broken.
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Broken may have been too strong of a word. But distorted for sure. When I look at the runup of just on BRC-20 (ORDI) the high mempool fees seem like a small cost of doing business.
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I used to be mad about all this ordinals comedy but then I decided to buy a 2TB disk and stop worrying. Bitcoin is freedom and sometimes that means freedom for others to do non-super-harmful things because of their reasons. For me this is just a phase and, like with NFT’s, people will have some fun and then the dust will settle.
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I can agree that wait and see is a fantastic course of action. Only social "solutions" have little-to-no downside.
But my point is the NFTs aren't the scam, not even a large portion of it.
The BRC-20s are like all the shitcoins on top of ETH. They won't fade the same way NFT fad-stupidity will. So the economic incentives to perpetuate won't go away.
Hope I'm wrong.
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