The Bull Case for Bitcoin’s Web3 Ecosystem, Ordinals and BRC-20 Tokens

In the recent past, Leonidas.og, a well-known figure and influencer in the Ordinal space, painted a bullish picture for the integration of Web3 into Bitcoin’s ecosystem. The growth and adoption of Ordinals and BRC-20 tokens have fueled an explosion of Web3 activities on the Bitcoin base layer, unlocking a series of dynamic use cases previously exclusive to other chains. This development has engendered an organic formation of a new Bitcoin Web3 ecosystem and culture, breathing life into a fresh wave of movement within the space.

Just three months ago, the Ordinal and BRC-20 space was an enigma to many, with only a handful of enthusiasts conducting trades via spreadsheets in discord OTC channels. Today, the space has seen an influx of major players, including 10+ decentralized exchanges (DEXs) and nine of the world’s top ten crypto exchanges, all showing interest in Ordinals and BRC-20 tokens.

The shift hasn’t just attracted the attention of exchanges. Many iconic brands, such as Bugatti, Bitcoin Magazine, and Yuga Labs, have also jumped on the bandwagon, releasing their own Ordinal collections. This rapid expansion of the ecosystem is primarily due to an influx of users, developers, brands, and institutional capital, creating positive feedback loops.

Leonidas.og points out that the past four months have seen three mini “cycles” of this feedback loop play out. Each cycle starts with users identifying opportunities and speculating, which then attracts developers who work to solve user problems and improve infrastructure and user experience. This activity draws in brands who lend their reputation to the space, and finally, institutional capital comes in to fuel the developers and brands with capital, thus setting the stage for the next cycle.

These positive feedback loops have amplified the belief in the inevitability of Bitcoin hosting all use cases and dApps that other chains have. As the first, longest-running, largest, most secure, and most iconic blockchain, Bitcoin was content to let other chains experiment with Web3 for the past seven years. But with DeFi, NFTs, and fungible tokens now proven to provide real value and solve tangible problems, it’s time for Bitcoin to step up.

If this predicted transition to Web3 on Bitcoin indeed occurs, it could represent a once-in-a-decade opportunity to generate substantial wealth. A mature Web3 ecosystem like Ethereum or Solana typically exhibits a 1:1 ratio between the market cap of the native currency and the total value of all other assets. If this trend were to replicate on Bitcoin, the potential market size for Bitcoin Web3 would be colossal.

Currently, the value of Web3 assets on Bitcoin stands at $654M, a mere 0.12% of the BTC market cap. If the projected positive feedback loop cycles continue over the coming years and Bitcoin evolves into a mature Web3 ecosystem, this could imply a staggering 798x growth in the total value of Web3 assets on Bitcoin.

When you compound this with the prediction of another crypto bull run in the coming years, you can see a 7980x opportunity between now and whenever the next crypto cycle bull run happens.

However, Leonidas.og is quick to caution that this is only the bull case. There are certainly bear cases, such as the potential of Bitcoin getting banned due to climate activists, or the SEC banning all Web3 activities in the United States. Nonetheless, historically, betting against Bitcoin has proven to be a poor choice.

As a fervent believer in the potential of Bitcoin’s Web3 ecosystem, Leonidas.og has made a considerable investment in this space, spending over half a million dollars of his personal funds collecting ordinal inscriptions, accumulating BRC-20 tokens, and building a company (@ord_io) dedicated to this emerging sector. His conviction is not mere speculation; it is a belief steeped in his understanding of the crypto space and his experience from the early days of Bitcoin and CryptoPunks.

However, he emphasizes that his bullish stance and actions should not be considered financial advice. The potential rewards may be high, but the crypto sector is highly volatile, and even the most experienced players can face significant losses. Investments should be made with caution, and only with funds that one can afford to lose.

Leonidas.og concludes by underscoring the importance of transparency in understanding the financial perspective of Bitcoin’s Web3. While the future is uncertain, and bear cases do exist, the signs of a significant shift towards Bitcoin’s Web3 are hard to ignore. The coming years may indeed see Bitcoin taking the center stage in the Web3 arena, providing a wealth creation opportunity that comes once in a decade.

In summary, the future of Bitcoin’s Web3, Ordinals, and BRC-20 tokens holds immense potential. Despite the risks involved, the potential growth and reward are enormous. As Leonidas.og puts it, “any serious capital allocator in the fintech sector should be at a minimum allocating 1% of their portfolio to this space in the event that the 7980x bull case does play out.” This statement perfectly encapsulates the optimism and enthusiasm that many in the space feel towards the future of Bitcoin’s Web3 ecosystem.

As the Bitcoin Web3 space continues to mature, the words of Leonidas.og serve as a reminder that the world of crypto is a dynamic and constantly evolving landscape, offering opportunities for those bold enough to seize them. The potential 7980x growth underscores the colossal opportunity that lies within Bitcoin’s integration with Web3, Ordinals, and BRC-20 tokens.


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Maria Irene
Maria Irene
Maria Irene is a multi-faceted journalist with a focus on various domains including Cryptocurrency, NFTs, Real Estate, Energy, and Macroeconomics. With over a year of experience, she has produced an array of video content, news stories, and in-depth analyses. Her journalistic endeavours also involve a detailed exploration of the Australia-India partnership, pinpointing avenues for mutual collaboration. In addition to her work in journalism, Maria crafts easily digestible financial content for a specialised platform, demystifying complex economic theories for the layperson. She holds a strong belief that journalism should go beyond mere reporting; it should instigate meaningful discussions and effect change by spotlighting vital global issues. Committed to enriching public discourse, Maria aims to keep her audience not just well-informed, but also actively engaged across various platforms, encouraging them to partake in crucial global conversations.


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