Sora Summit | Bitcoin OGs Gather! Discussing L2 Development, Predicting Bitcoin Market Cap to Reach 4 Trillion?

The Sora Summit event reached a new climax during the first afternoon session, where founders of Ordinals, OnChainMonkey, Bitcoin Magazine, and BRC20 gathered together to discuss "The Implications for the Future of Bitcoin." They explored the development of the Bitcoin ecosystem over the past year and its potential prospects for the future.

How was the Ordinals Protocol born?

At the beginning of the talk, the host straightforwardly asked Ordinals founder Casey Rodarmor, "What was your motivation for creating Ordinals?"

Casey mentioned that he had created many generative digital art pieces in the past. When he first encountered NFTs in 2017, he thought it was a cool concept. However, after witnessing the skyrocketing prices in the NFT generative art market due to projects like Art Blocks, Casey noticed some technical issues with Ethereum NFTs, such as complexity, off-chain image storage, and security concerns.

These reasons led Casey to consider bringing NFTs to the Bitcoin blockchain. Besides addressing these issues, the goal was to make transactions on the Bitcoin blockchain more active and attract more users.

Text-based transactions are hot! Is Bitcoin L2 the best solution?

During the discussion, BRC20 creator Domo shared the frenzy around text-based transactions over the past year, noting that there are currently around 50 million text-based transactions generating approximately 3,500 BTC in transaction fees, equivalent to around $150 million.

With the increasing volume of Bitcoin transactions, Casey hopes that the Lightning Network will continue to evolve to become a more practical Bitcoin Layer 2 solution to address the current high transaction fees.

Bitcoin Magazine CEO David Bailey likened Ethereum's past experiences to the future of the Bitcoin ecosystem, stating that if Ethereum's transaction fees can exceed hundreds of dollars, the transaction fees on Bitcoin, with lower block efficiency and more restrictions, will inevitably become even higher.

However, when people can no longer bear the high fees, they will naturally switch to cheaper Layer 2 solutions for transactions. As the development of Layer 2 progresses, trading of homogeneous tokens on Bitcoin will also become more active due to relatively lower fees.

At what stage is the development of the Bitcoin ecosystem?

Regarding the current stage of the Bitcoin ecosystem, David shared his thoughts from a venture capitalist perspective, mentioning that the majority of crypto venture capital only allocates 0.1% of assets under management to native Bitcoin assets.

If this proportion can increase from 0.1% to 5-10% in the future, the Bitcoin ecosystem will explode in development, giving rise to thousands of protocols.

How high could the market value of the Bitcoin ecosystem reach?

Finally, the host was curious about the speakers' outlook on how high the market value of the Bitcoin ecosystem could reach. Casey bluntly stated, "One trillion dollars, LFG."

However, David disagreed with this valuation, believing that with Ethereum and ERC-20 tokens currently valued in the hundreds of billions of dollars, the current market value of Bitcoin exceeding $800 billion could potentially continue to grow to a scale of 3-4 trillion dollars in this market cycle.