Elon Musk slams NFTs but ends up arguing the case for Bitcoin Ordinals

While publicly buffooning non-fungible token (NFTs) during a podcast, Tesla CEO and billionaire Elon Musk appears to have inadvertently highlighted the case for Bitcoin Ordinals, likewise referred to as Bitcoin NFTs. “The amusing thing is the NFT is not even on the blockchain– its simply a URL to the JPEG,” stated Musk in an Oct. 31 released interview on The Joe Rogan Experience.Musk said NFT jobs ought to at least encode the JPEG on-chain:” You must at least encode the JPEG in the blockchain. You do not have the image anymore if the company real estate the image goes out of service.” On social networks, Bitcoiners argued Musks comments actually summarized the use case for Bitcoin Ordinals. Bitcoins version of NFTs launched in January by designer Casey Rodarmor, which was made possible by the Taproot soft fork in November 2021. Cryptocurrency analyst Will Clemente was among those that praised Musks remarks, keeping in mind there are 38 million and counting Ordinals engravings that will permanently exist on Bitcoins blockchain..@elonmusk you simply set out the case for Bitcoin ordinals – image/text engravings directly on the most safe open source monetary network on earth. There are currently 38 million of these engravings on the Bitcoin blockchain. pic.twitter.com/WASj1qpkz8— Will Clemente (@WClementeIII) November 1, 2023

Source: Ord.ioThe criticisms from Musk toward NFTs arent brand-new. In December 2021, he buffooned NFTs as an indication of psychological health problem in a meme showing a client lying on a therapists couch.pic.twitter.com/Wv6iJDuTge— Elon Musk (@elonmusk) December 16, 2021

Related: Are NFT markets in a death spiral or prepared for a renewal? Metagood, the team behind the Ethereum-native OnChainMonkeys, revealed in September that it would move its NFTs to Bitcoin.While the firms CEO Danny Yang didnt directly deal with the JPEG problem, he discussed that NFTs “will win on Bitcoin” due to the fact that it is a more secure network to work from:” The Bitcoin Ordinal protocol is better designed for decentralization and security than the Ethereum NFT protocol. High-value NFTs will win on Bitcoin.” However, Ethereum still stays home to 84% of all NFT trading volumes, according to CoinGecko, sourcing information from June. Bitcoin and ImmutableX was available in third and 2nd with market shares of 11% and 2.5% respectively.Magazine: NFT Collector: William Mapans Distance sells out, NFT float in Macys Parade, Nouns DAO forks

While publicly mocking non-fungible token (NFTs) during a podcast, Tesla CEO and billionaire Elon Musk appears to have actually inadvertently highlighted the case for Bitcoin Ordinals, also known as Bitcoin NFTs. “The funny thing is the NFT is not even on the blockchain– its just a URL to the JPEG,” said Musk in an Oct. 31 launched interview on The Joe Rogan Experience.Musk stated NFT tasks ought to at least encode the JPEG on-chain:” You must at least encode the JPEG in the blockchain. Metagood, the group behind the Ethereum-native OnChainMonkeys, revealed in September that it would move its NFTs to Bitcoin.While the companys CEO Danny Yang didnt straight resolve the JPEG predicament, he described that NFTs “will win on Bitcoin” because it is a more secure network to work from:” The Bitcoin Ordinal protocol is much better designed for decentralization and security than the Ethereum NFT procedure. Bitcoin and ImmutableX came in 3rd and 2nd with market shares of 11% and 2.5% respectively.Magazine: NFT Collector: William Mapans Distance offers out, NFT float in Macys Parade, Nouns DAO forks

Musks comments nevertheless dont stand true for all NFT tasks on Ethereum.For example, Larva Labs moved its Cryptopunks NFTs on-chain in August 2021 after they lived off-chain for the very first 4 years.” Storing them on-chain in this method would even more seal the long-term survival of the Cryptopunks attributes and images, and make sure that they can be completely accessed by anyone with only an Ethereum client,” Larva Labs in the statement..@elonmusk is right that having NFT merely supply an http link to someones domain is silly. With uncommon exceptions, its also silly to insist NFT content be on chain, IPFS links, with the material backed by whoever owns the NFT is the natural option.– Arthur B. (@ArthurB) November 1, 2023

Other Questions People Ask

What did Elon Musk say about NFTs during his podcast appearance?

During his appearance on The Joe Rogan Experience, Elon Musk criticized NFTs by stating that they are not truly on the blockchain, but merely URLs pointing to JPEGs. He emphasized that NFT projects should at least encode the images directly on-chain to ensure their permanence. Musk's comments sparked discussions among Bitcoin enthusiasts who argued that his critique inadvertently supported the case for Bitcoin Ordinals, which do store data directly on the blockchain.

How do Musk's comments support the argument for Bitcoin Ordinals?

Musk's criticism of NFTs highlights a significant advantage of Bitcoin Ordinals, which are designed to store images and data directly on the Bitcoin blockchain. By emphasizing the need for on-chain storage, Musk inadvertently reinforced the value proposition of Bitcoin Ordinals as a more secure and decentralized alternative to traditional NFTs. This perspective has been echoed by cryptocurrency analysts who note that there are already millions of Ordinals engravings permanently existing on the Bitcoin network.

What are Bitcoin Ordinals and how do they differ from traditional NFTs?

Bitcoin Ordinals, also referred to as Bitcoin NFTs, are a new way to inscribe data directly onto the Bitcoin blockchain, made possible by the Taproot soft fork. Unlike traditional NFTs that often link to off-chain content, Bitcoin Ordinals ensure that the data is permanently stored on-chain, enhancing security and decentralization. This fundamental difference addresses some of the concerns raised by Elon Musk regarding the reliability of NFT content.

What implications do Musk's views have for the future of NFTs and Bitcoin Ordinals?

Musk's views could signal a shift in how NFTs are perceived, particularly as more creators and companies consider moving their projects to Bitcoin for enhanced security. His critique may encourage NFT developers to rethink their strategies and prioritize on-chain solutions, similar to Bitcoin Ordinals. As more high-value NFTs migrate to Bitcoin, it could reshape the landscape of digital collectibles and challenge Ethereum's dominance in the NFT market.

Why are some NFT projects considering a move to Bitcoin?

Some NFT projects are exploring a transition to Bitcoin due to its reputation for security and decentralization. Companies like Metagood have expressed confidence that NFTs will thrive on Bitcoin because of its robust network. The shift is also driven by criticisms of existing NFT protocols, prompting creators to seek more reliable alternatives that align with Musk's emphasis on on-chain data storage.