\Why Bitcoin's Ecosystem is the Engine of this Bull Market

The development of blockchain follows a certain pattern, with Bitcoin widely recognized in the second bull market. In the third round, Ethereum competes for Bitcoin's market. In the fourth round, the widespread real-world applications of blockchain spawned by Ethereum smart contracts, as well as new public chains competing with Ethereum smart contracts. In the fifth round, blockchain public chain technology reaches its peak, and competition in application areas intensifies.

Due to the maturity of Ethereum smart contracts, the fifth bull market lacks a new narrative for Ethereum. Various applications of Ethereum are already mature. This leads investors to prefer other public chain applications in the blockchain field with more potential. Bitcoin's development in applications over the past decade has been in a blank state but has a significant amount of capital. As the market value of Bitcoin grows, the profit potential for holders diminishes. Trading within the Bitcoin ecosystem allows for greater profits. This is a very strong appeal.

The reason this appeal is not satisfied is not only because of Ethereum smart contracts but more importantly because many investors do not understand the technology; those who understand technology may not understand investment. Specialization is key.

Why Ordinals Protocol will be the Biggest Gold Mine in the Bitcoin Ecosystem

Many investors do not understand technology, and those who understand technology may not understand investment. Technically, Ethereum's smart contracts are very sophisticated and do not need Bitcoin's Ordinals Protocol. From an investment perspective, the Ethereum space is no longer profitable, so there's no need to continue investing funds there.

What drives the development of the Ordinals Protocol is not just technology; the majority is the demand for investment. Strong investment demand (the wealth effect) is the core of this bull market. From small investors to big whales, they are accustomed to wealth increasing by 100 times in a bull market. So, in the fifth bull market, it is unacceptable for their wealth to only increase by 3-5 times.

The Ordinals Protocol, as a protocol in the Bitcoin ecosystem, is very simple and easy to understand, unlike Ethereum's complex smart contracts. Things that are simple and easy to understand can reduce uncertainty in investment risk. In addition, the Ordinals Protocol is the first protocol in the Bitcoin ecosystem to utilize UTXO. Most investors may not know what UTXO is, but what they do know is that the birth of the Ordinals Protocol allows Bitcoin to issue NFTs and quickly create a token (much faster than Ethereum, taking less than a minute). The key is whether people who want to invest can easily understand what this project is. No one will buy something they don't understand.

"Price analysis tools" explain that "tokens with a hundredfold increase are the leaders in public chains." The Ordinals Protocol is a leading project in the Bitcoin ecosystem and an important symbol of the entire Bitcoin ecosystem. If the market abandons the Ordinals Protocol, then all protocols extending from UTXO will be abandoned by investors. It's like when Bitcoin drops significantly, the token prices of all blockchain projects will also plummet.

What is Ordinals? How is it different from BRC-20? What is Ordi?

Simply put, Ordinals is a protocol, BRC-20 is a standard, and Ordi is a token issued by the Ordinals Protocol. Setting aside the history of the Ordi token (because it is not important, and most investors do not understand the technology, and blockchain cryptography is very complex), Ordi, as the first token issued using Bitcoin UTXO, ensures that the Ordi token will be an important symbol of the entire Bitcoin ecosystem.