An official collection of ordinals by El Salvador could accelerate the progress of its realization with Bitcoin and confer unique advantages to investors.
This is an opinion editorial by Steven Hay, writer, former tradesman and art dealer.
I am a lifelong Bitcoiner preparing to travel and hopefully move permanently to El Salvador in 2023. Like many Bitcoiners, I want to be a part of the amazing changes happening in this country. And I would like to share an idea that I strongly believe has the potential to accelerate these changes.
Similar to the volcanic bond concept, this idea uses Bitcoin-linked assets to raise funds for the construction of Bitcoin City, or any other worthy project. Unlike bonds, however, these relatively simple assets impose no legal or financial obligations on the nation. They are simply created and then sold on the open market.
My idea revolves around something many of you have heard of: Bitcoin ordinals. This new protocol launched in January 2023, allows the creation of “Bitcoin NFTs” linked to unique satoshis. Known as “registrations”, these special satoshis are tied to data that is permanently embedded in Bitcoin’s blockchain. This data can take the form of images, texts, videos, etc.
Just a few months after its creation, this new form of digital asset has already seen considerable investment, with at least $21 million in volume traded across the six major exchanges and additional OTC transactions. Galaxy Research estimates that the ordinal market will reach $4.5 billion in total value by 2025. This figure may well turn out to be conservative – especially if the government of El Salvador becomes an official participant in this space.
Already, renowned luxury goods manufacturers like Bugatti and Asprey are involved in Ordinals. If private companies are expected to make millions of dollars in sales in this new market, how much more could a sovereign state make? As the ordinal market matures and begins to attract mainstream investment, it seems certain that historically significant collections will achieve valuations that reflect their significance and rarity.
My suggestion is that the government of El Salvador continue to successfully implement new ideas by releasing an official collection of Bitcoin ordinals. Perhaps such a collection could include art or photography that showcases the country’s natural beauty, architecture, and culture. Alternatively, it may feature scans of official documents relating to new Bitcoin laws or Bitcoin City plans. Such listings could confer certain benefits to their owners, such as discounts on government service fees. Buying government registration could even be part of a future Salvadoran Citizenship by Investment (CBI) program. The possibilities are virtually endless.
Additionally, I believe the potential benefits are high while the risks are low and manageable. I believe that the goodwill of Bitcoiners and the interest of the world in the rapid improvement of El Salvador will lead to a strong demand for what could be called its “national treasures of digital art”. If the technical and creative aspects are handled properly by the professionals involved, I believe that such an endeavor can only bring great benefits to the Salvadoran people and the global bitcoin community.
This is a guest post by Steven Hay. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.