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Most Bitcoin Inscriptions belong to a single person

block21m.substack.com

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Re: Most Bitcoin Inscriptions belong to a single person

#51

Post by scrum-treats »

givemeethekeys wrote: post #40
RustyRussell wrote: post #30

Earlier quoted context omitted.

Someone is creating tokens with the hope of selling them onwards. Most of them are created by a single entity, who spent about $30M in fees to do so, so presumably they expect people to buy them, and thus profit. The only reason most Bitcoin users care is that they pushed up fees for everyone else (there is limited block space, so miners take the highest bids). Such few pressure is expected to be the norm eventually,…

Does that means that the cost of transferring bitcoin will only go up with time?

"We leave the conclusions to the reader. However, we notice that by spending only 0.005% of the total Bitcoin supply on transaction fees, a single entity can significantly impact the entire Blockchain regime. This illustrates that if a whale or a governmental actor, possessing hundreds of thousands of Bitcoins, decides to spam the blockchain, they could impede its usability for normal payments."

Re: Most Bitcoin Inscriptions belong to a single person

#52

Post by annoyedd »

Most belong to Udi Wertheimer, who hints it was funded by faketoshi Craig Wright as an attack on bitcoin. It's a very inefficient way to do 'nfts' on Bitcoin. There exists layer 2 protocol to make this work much better. Bitcoin will evolve and correct issues like this.

Re: Most Bitcoin Inscriptions belong to a single person

#53

Post by nullc »

sdenton4 wrote: post #22
dhbanes wrote: post #15

Earlier quoted context omitted.

You're off by an order of magnitude. 1,056 BTC is currently worth approximately $29m.

But could you sell $30m of Bitcoin without tanking the price?

> But could you sell $30m of Bitcoin without tanking the price?

Yes, at the spot market you can usually move $30 million in a single trade with only a small slippage. Bitcoin is more liquid than most stocks.

Re: Most Bitcoin Inscriptions belong to a single person

#54

Post by drexlspivey »

willmadden wrote: post #23

TLDR/non-crypto summary: Bitcoin's developers made changes recently that allow much larger transactions, with blocks up to 4MB in size on the Bitcoin blockchain in support of "BRC-20" tokens, which is Bitcoin's feature reduced version of Ethereum's ERC-20 token. These same developers block attempts to increase the block size in Bitcoin, which would allow more throughput and transaction capacity. The increased demand…

> TLDR/non-crypto summary: Bitcoin's developers made changes recently that allow much larger transactions, with blocks up to 4MB in size on the Bitcoin blockchain in support of "BRC-20" tokens, which is Bitcoin's feature reduced version of Ethereum's ERC-20 token.

This is completely false. 4MB blocks are possible since segwit in 2017 and BRC-20 has nothing to do with bitcoin, it’s just some third party protocol that assigns meaning to random data stored in the blockchain.

You can append random crap to your transaction and store it in the blockchain if you pay the fee, nothing has changed. The limit is still 4MB every 10 minutes.

Re: Most Bitcoin Inscriptions belong to a single person

#55

Post by nullc »

globalreset wrote: post #31
dingledork69 wrote: post #4

> We leave the conclusions to the reader. As someone who hasn't kept up with Bitcoin for the past few years, can someone share their conclusion?

Someone (possibly, as nothing here is certain) mined most of this worthless "NFTs". Maybe out of passion, maybe hoping to sell them to idiots, maybe just to spam Bitcoin's blockchain. That's it. That all the conclusions to be had here. The whole thing is a big nothing. Idiots duped to pay for this stuff raised the floor for price of blockchain space from artificially low (due to still low adoption) to a more reasonab…

> Maybe out of passion

oh yeah, haven't we all had ones of those days where we get excited about something and spend thirty million dollars on transaction fees? :)

(I don't disagree with the rest, but I am chuckling a bit at people wrapping themselves into pretzels trying to find ways to see it as potentially earnestly motivated...)

Re: Most Bitcoin Inscriptions belong to a single person

#56

Post by nl »

dhbanes wrote: post #15
nl wrote: post #10

Background: https://www.coindesk.com/learn/brc-20-explained-how-tokens-o... > The total transaction fees spent by this entity to dominate the Inscriptions are estimated to be 1056 BTC as of May 25, 2023... We leave the conclusions to the reader. I don't really understand what conclusion we are supposed to draw. > However, we notice that by spending only 0.005% of the total Bitcoin supply on transaction fees, a single…

You're off by an order of magnitude. 1,056 BTC is currently worth approximately $29m.

Sorry, miscounted digits!

Fixed it.

Re: Most Bitcoin Inscriptions belong to a single person

#57

Post by fdhfdjkfhdkj »

agentgumshoe wrote: post #38
JoBrad wrote: post #8

Earlier quoted context omitted.

Probably that it’s very centralized. Or at least that the price is able to be highly influenced by a few individuals/groups.

I think this is the point that gets missed in arguments about state actors being involved. That doesn't matter, what matters is that very few people (e.g. miners, exchanges, whales, etc) can determine very large outcomes for cryptocurrencies, with no way to avoid them.

The only way to win is not to play

Re: Most Bitcoin Inscriptions belong to a single person

#58

Post by Paul-Craft »

mvdtnz wrote: post #43
RustyRussell wrote: post #30

Earlier quoted context omitted.

Someone is creating tokens with the hope of selling them onwards. Most of them are created by a single entity, who spent about $30M in fees to do so, so presumably they expect people to buy them, and thus profit. The only reason most Bitcoin users care is that they pushed up fees for everyone else (there is limited block space, so miners take the highest bids). Such few pressure is expected to be the norm eventually,…

> they pushed up fees for everyone else (there is limited block space, so miners take the highest bids) Imagine if your Visa card became hundreds of times more expensive to use during the Christmas shopping period.

My Visa card doesn't cost me anything to use, because I don't carry a balance. It costs the merchant money to process the transaction, which would get passed on to consumers in general as higher prices. So, if this happened, what you'd see is people complaining about "inflation."

Re: Most Bitcoin Inscriptions belong to a single person

#59

Post by Paul-Craft »

scrum-treats wrote: post #51
givemeethekeys wrote: post #40

Earlier quoted context omitted.

Does that means that the cost of transferring bitcoin will only go up with time?

"We leave the conclusions to the reader. However, we notice that by spending only 0.005% of the total Bitcoin supply on transaction fees, a single entity can significantly impact the entire Blockchain regime. This illustrates that if a whale or a governmental actor, possessing hundreds of thousands of Bitcoins, decides to spam the blockchain, they could impede its usability for normal payments ."

There are essentially no "normal payments" being done with Bitcoin.

Re: Most Bitcoin Inscriptions belong to a single person

#60

Post by willmadden »

drexlspivey wrote: post #54
willmadden wrote: post #23

TLDR/non-crypto summary: Bitcoin's developers made changes recently that allow much larger transactions, with blocks up to 4MB in size on the Bitcoin blockchain in support of "BRC-20" tokens, which is Bitcoin's feature reduced version of Ethereum's ERC-20 token. These same developers block attempts to increase the block size in Bitcoin, which would allow more throughput and transaction capacity. The increased demand…

> TLDR/non-crypto summary: Bitcoin's developers made changes recently that allow much larger transactions, with blocks up to 4MB in size on the Bitcoin blockchain in support of "BRC-20" tokens, which is Bitcoin's feature reduced version of Ethereum's ERC-20 token. This is completely false. 4MB blocks are possible since segwit in 2017 and BRC-20 has nothing to do with bitcoin, it’s just some third party protocol that…

What about my reply is false? Ordinal inscription transactions are huge and stored on-chain. This caused the backlog.
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