Elon Musk suggested that NFT projects should save the actual image (JPEG) on the blockchain. This idea made Bitcoin enthusiasts happy.
Elon Musk, the CEO of Tesla and a billionaire, made fun of non-fungible tokens (NFTs) during a podcast interview on The Joe Rogan Experience. He pointed out that many NFTs are just links to images and not actually stored on the blockchain. Musk suggested that NFT projects should save the actual image (JPEG) on the blockchain to ensure it’s not lost if the company hosting the image goes out of business.
Elon Musk’s Comments Shed Light on Bitcoin Ordinals
Bitcoin enthusiasts on social media saw Elon Musk’s recent comments as highlighting the value of Bitcoin Ordinals, which are like NFTs for Bitcoin. These Ordinals were made possible by the Taproot soft fork in November 2021 and have grown to over 38 million inscriptions on Bitcoin’s blockchain.
People, including cryptocurrency analyst Will Clemente and NFT creator Rohun Vora, praised Musk’s comments, saying that Bitcoin Ordinals provide an elegant solution to the common criticisms of NFTs.
.@elonmusk you just laid out the case for Bitcoin ordinals – image/text inscriptions directly on the most secure open source monetary network on the planet. There are currently 38 million of these inscriptions on the Bitcoin blockchain. pic.twitter.com/WASj1qpkz8
— Will (@WClementeIII) November 1, 2023
In fact, an Ordinals developer named “Leonidas” liked Musk’s comments so much that they encoded Musk’s 19-second video into Bitcoin’s blockchain at block 814,773.
Musk has criticized NFTs before, even calling them a sign of mental illness in a meme back in December 2021.
— Elon Musk (@elonmusk) December 16, 2021
Musk’s NFT Comments Don’t Apply to All Ethereum Projects
It’s important to note that Elon Musk’s comments about NFTs may not be accurate for every NFT project, especially on the Ethereum blockchain. For instance, Larva Labs took its Cryptopunks NFTs and moved them onto the Ethereum blockchain in August 2021 after they initially existed off-chain for the first four years.
This move was aimed at ensuring the long-term preservation of Cryptopunks’ images and attributes, making them fully accessible to anyone with an Ethereum client.
.@elonmusk is correct that having NFT merely provide an http link to someone's domain is silly.
However, with rare exceptions, it's also silly to insist NFT content be on chain,
IPFS links, with the content backed by whoever owns the NFT is the natural solution.
— Arthur B. 🌮 (@ArthurB) November 1, 2023
Metagood Moves NFTs to Bitcoin for Security
In September, the team behind Ethereum-native OnChainMonkeys, called Metagood, announced that they were shifting their NFTs to the Bitcoin blockchain. While their CEO, Danny Yang, didn’t directly mention the JPEG issue, he explained that NFTs would thrive on Bitcoin because it’s a more secure network.
According to Yang, the Bitcoin Ordinal protocol is better suited for decentralization and security compared to Ethereum’s NFT protocol. He believes high-value NFTs will find success on Bitcoin.
However, it’s worth noting that despite this migration, Ethereum still dominates the NFT market, accounting for 84% of all NFT trading volumes, according to CoinGecko’s data from June. Bitcoin and ImmutableX come in second and third, with market shares of 11% and 2.5%, respectively.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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