This is an opinion editorial by Steven Hay, a writer, former trader and art dealer.
I’m a long-time Bitcoiner, preparing to travel and hopefully relocate permanently to El Salvador in 2023. Like many Bitcoiners, I wish to be a part of the amazing changes happening in this country. And I’d like to share an idea which I strongly believe has the potential to accelerate those changes.
Similar to the volcano bond concept, this idea employs Bitcoin-linked assets to raise funds for the building of Bitcoin City, or any other worthy project. Unlike bonds, however, these relatively-straightforward assets impose no legal or financial obligations upon the nation. They are simply created and then sold on the free market.
My idea revolves around something many of you have heard of: Bitcoin Ordinals. This new protocol, launched in January 2023, allows for the creation of “Bitcoin NFTs” linked to single satoshis. Known as “inscriptions,” these special satoshis are bound to data which is permanently embedded within Bitcoin’s blockchain. This data can take the form of images, text, video, etc.
Mere months after its creation, this new form of digital asset has already received considerable investment, with at least $21 million in volume traded over the six major marketplaces and additional trades conducted over the counter.. Galaxy Research estimates that the Ordinals market will grow to $4.5 billion in total value by 2025. This figure may well prove to be conservative — especially if the government of El Salvador becomes an official participant in this space.
Already, renowned luxury goods makers like Bugatti and Asprey are involved in Ordinals. If private companies are expected to achieve millions of dollars in sales in this new market, how much more could a sovereign state achieve? As the Ordinals market matures and begins to attract mainstream investment, it seems certain that collections of historical significance will reach valuations which reflect their importance and rarity.
My suggestion is that the government of El Salvador continue to successfully implement new ideas by releasing an official Bitcoin Ordinals collection. Perhaps such a collection might comprise art or photography which highlight the country’s natural beauty, architecture and culture. Alternatively, it might feature scans of official documents relating to the new Bitcoin laws or Bitcoin City plans. Such inscriptions might confer certain benefits to their owners, such as discounts on government service fees. The purchase of a governmental inscription might even form part of a future El Salvadoran citizenship by investment (CBI) program. The possibilities are virtually endless.
Furthermore, I believe that the potential upsides are high while the risks are low and manageable. I believe that the goodwill of Bitcoiners and the world’s interest in El Salvador’s rapid improvement will lead to a great demand for what might be called its “national digital art treasures.” If the technical and creative aspects are handled correctly by the relevant professionals, I believe that such an endeavor can only bring great benefits to the people of El Salvador and to the global Bitcoin community.
This is a guest post by Steven Hay. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
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