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Summary
Entering 2023, the Bitcoin wealth effect is evident, rising from $16,500 at the beginning of the year to $42,000. Besides Bitcoin itself, market funds have also flowed into its ecosystem. The most notable case is the explosion of the BRC20 sector under the Ordinals protocol. The market capitalization of BRC20 tokens now exceeds $4 billion, compared to $100 million in March, representing an increase of over 40 times. This has driven continuous innovation and development in the entire Bitcoin ecosystem.
The current focus of the market on the Bitcoin ecosystem revolves around two aspects: asset issuance protocols, mainly covering Ordinals, Atomicals, Runes, PIPE, Taproot Assets, and scalability solutions, mainly covering Lightning Network, RSK, Stacks, RGB, and BitVM.
The main sectors with obvious wealth effects in the current stage of the Bitcoin ecosystem are BRC-20 assets under the Ordinals protocol, ARC-20 and Realm under the Atomicals protocol, PIPE under the PIPE protocol, and tokens in the Bitcoin scalability sector (RIF, STX). This article analyzes the reasons why these assets have wealth effects and introduces ways for investors to participate.
In addition to technical innovation, the prosperity of the Bitcoin ecosystem depends on various market participants, including individual investors, exchanges, project teams, miners, and investment institutions. Therefore, this article analyzes the opportunities and risks for these five categories of groups in the development of the Bitcoin ecosystem, providing reference for investment and business development.
Based on the future macro environment and market conditions, the Bitcoin ecosystem has a promising development prospect. Not only popular currencies like BTC and ORDI will have considerable appreciation space, but there will also be new opportunities for hundredfold coins in the Bitcoin ecosystem.
The Bitcoin NFT market has seen a surge in trading volume, but the current scale is relatively small. Therefore, it is expected to have over 100 times growth in the future. The Lightning Network is the most significant technological support in the short to medium term to help Bitcoin payments be adopted on a larger scale.
Combining the above analysis, Bitget Research Institute has made six predictions for the future trend of the Bitcoin ecosystem.
Note: This report does not constitute any investment advice, and caution is needed in cryptocurrency investments due to market risks.
Since the second half of 2023, not only has the Fed's interest rate hike cycle come to an end, but also the approval of a Bitcoin spot ETF by the U.S. SEC has become almost a market expectation. Once the Bitcoin spot ETF is approved, a considerable amount of traditional financial funds can flow into the Bitcoin ecosystem in a compliant manner. Under this huge expectation, not only is Bitcoin maintaining a good upward trend, but it has also driven the development of related projects in the Bitcoin ecosystem.
The most notable case is the outbreak of the BRC20 sector in the Bitcoin ecosystem, starting in November. The huge wealth effect of BRC20 tokens such as ORDI, SATS, and RATS has attracted extreme attention to the Bitcoin ecosystem in the market. So, what is the Bitcoin ecosystem, and which projects are worth paying attention to? Understanding these clearly may be the key to seizing the next bull market wealth opportunity.
I. What is the Bitcoin Ecosystem?
1. Definition of the Bitcoin Ecosystem
The Bitcoin ecosystem refers to the ecosystem composed of solutions, protocols, applications, assets, etc., to improve the utilization and efficiency of the Bitcoin blockchain network. The current discussion on the Bitcoin ecosystem focuses on two aspects: asset issuance protocols and scalability solutions.
- Asset Issuance Protocols: Protocols defining technical standards for asset issuance, mainly including Ordinals, Atomicals, Runes, PIPE, Taproot Assets.
- Scalability Solutions: Solutions aimed at improving the basic performance of the Bitcoin network, with main representative solutions being Lightning, RSK, Stacks, RGB, BitVM.
2. How Did the Bitcoin Ecosystem Develop from 0 to 1?
To understand how the Bitcoin ecosystem has developed from 0 to 1, it is necessary to go through several key development stages of Bitcoin.
On October 31, 2008, Satoshi Nakamoto published a paper titled "Bitcoin: A Peer-to-Peer Electronic Cash System," detailing the concept and technical details of Bitcoin. Subsequently, on January 3, 2009, Satoshi Nakamoto mined the genesis block of the Bitcoin network, marking the birth of Bitcoin.
After the birth of Bitcoin, it attracted numerous individuals from the fields of cryptography and computer science. With the continuous spread of Bitcoin, the number of people accepting and building ecosystem applications around Bitcoin for production and transactions increased. This initially formed an industrial pattern consisting of chips, integrated circuits, exchanges, wallets, application software, etc., centered around Bitcoin production and transactions, making Bitcoin and various cryptocurrencies gradually enter the public eye.
In addition to the production and trading of Bitcoin, people began to try to develop more applications that could be used in daily life on the Bitcoin network. However, they encountered the technical bottleneck of the Bitcoin blockchain network itself. This is because blockchain technology faces an impossible triangle problem, which means it is difficult to simultaneously satisfy decentralization, security, and scalability in the design of blockchain systems. |
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Post time 23-12-2023 13:24:56
