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TL;DR Breakdown
- MicroStrategy boss Michael Saylor has given his thoughts about the high-flying Bitcoin Ordinals.
- Saylor promotes ethical regulation and free market principles in his speech.
MicroStrategy co-founder and executive chairman, Michael Saylor, has emerged as a prominent Bitcoin maximalist embracing the concept of Ordinals—a protocol allowing for the inclusion of arbitrary and non-financial information on the Bitcoin blockchain. As transaction fees soared, Ordinals and the BRC-20 tokens built on the protocol have gained attention, sparking debates within the Bitcoin community about potential network attacks and the need for censorship.
Michael Saylor gives his thoughts about Bitcoin Ordinals
In an interview at the Bitcoin 2023 conference in Miami, Saylor expressed his positive view of Ordinals as a development for the Bitcoin network. However, he acknowledged that many early use cases tend to be more speculative and less serious. One notable collection of Bitcoin Ordinals, known as Bitcoin Frogs, has gained traction and draws inspiration from the popular Pepe the Frog meme coin craze in the NFT community.
Michael Saylor addressed concerns about BRC-20 tokens potentially being viewed as unregistered securities, emphasizing the importance of ethical and legal regulation. He stated that objection arises when these tokens are used to issue unregistered securities, which is both unethical and illegal. However, if they are issued and regulated properly, Saylor believes there is no issue, emphasizing the significance of the use case and perception.
He presented an example of tokenizing stocks and ETFs traded on NASDAQ, enabling individuals to personally hold custody of their shares instead of relying on centralized custodians. Saylor suggested that if BRC-20 tokens were framed in this manner, Bitcoin enthusiasts would support them.
Saylor lobbies for a free market and ethical regulation
While acknowledging both economically sound and potentially unethical use cases, Saylor, like many Bitcoin proponents, advocates for the free market to prevail. He believes that individuals should be free to invest in what they believe in and criticize concepts they find questionable, but censorship of transactions should be avoided.
Despite warnings about potential unregistered security offerings and dissent from some parts of the community, Saylor opposes modifying the Bitcoin protocol to censor Ordinal transactions. He stands firm in his belief that the protocol should not be altered to restrict certain transaction types.
As the Bitcoin ecosystem continues to evolve, Michael Saylor’s endorsement of Ordinals and the exploration of BRC-20 tokens shed light on the potential for expanding the functionality of the Bitcoin network beyond its original scope. While some concerns remain, the dialogue surrounding these developments contributes to the ongoing maturation and diversification of the cryptocurrency space.