19th June 2023 > > Teleburning.

tl;dr

Teleburning may look a little silly at first, but it points us towards an explosion in blockchain use cases.

Market Snap

Market Wrap

Glassnode reports that miners have transferred more BTC to exchanges to sell over the past week than at any point in the last five years. The seven-day moving average is running at 55 BTC per hour compared to production of 37.5 BTC per hour:

Currently, the markets seem happy to absorb this additional selling pressure, which is a cheering thought, though tempered by the claim that miners hold 1.8mm BTC, 9% of the total.

Curious Cryptos’ Commentary – Blackrock

I read today that Blackrock has had 575 successful ETF applications with just one that has been rejected by the SEC.

That Blackrock spot BTC ETF looks ever more likely (https://www.curiouscryptos.com/post/16th-june-2023-blackrock).

Curious Cryptos’ Commentary – Teleburning

That’s a new one for me too.

This weekend, some of the owners of Bitcoin Bandits (https://magiceden.io/ordinals/marketplace/bitcoin-bandits) clubbed together to buy CryptoPunk #8611 for $95k:

This was then burned by sending it to a wallet address for which no-one has the private keys. There is one wallet that is commonly used for this purpose which now holds $21mm of ETH and a bunch of NFTs:

https://etherscan.io/address/0x000000000000000000000000000000000000dead#nfttransfers

At the same time, it was replaced by an Ordinal inscription of the same image:

https://www.ord.io/12456749

But wait, that’s not all.

The punk is burned a second time, by sending this ordinal to Satoshi’s wallet, the private keys to which are not known by anyone. This wallet owns the 50 BTC from the Genesis block to which another 22 have been added over time by individuals making small donations, for reasons that largely escape me:

https://www.blockchain.com/explorer/addresses/btc/1A1zP1eP5QGefi2DMPTfTL5SLmv7DivfNa

Meanwhile, recursive inscriptions are created and airdropped to everyone who contributed to the original purchase of the Punk, making an NFT-like collection from just the one Punk.

…

What’s the point you may well ask?

I think there are two key things at work here. Firstly, this is a very strong statement of the value of ordinals over Ethereum based NFTs which by their nature are centralised.

The second point is to highlight the potential power of recursive ordinals, ordinals that point to other ordinals. I read that this means that the Bitcoin blockchain is effectively becoming its own internet, though I am not entirely clear on that point myself yet. More information here if you want to help me out:

https://twitter.com/LeonidasNFT/status/1668098460766052353

This is the power and beauty of blockchain technology – we have hardly even scratched the surface of how it will be used in the future, a point that the naysayers just do not get yet.