DocumentingBTC on Nostr: While many dislike the idea of Bitcoin NFTs congesting the network and being purely a ...

While many dislike the idea of Bitcoin NFTs congesting the network and being purely a speculative collectible, Bitcoin’s blockspace already has multiple functions besides regular transactions, like coinjoins, lightning channel management, UTXO consolidation, smart contracts etc., and now "digital artifacts“, all network participants have to bid for it in a free market.

Even if you don’t care about digital tokens, if widely adopted the minting might provide a base-demand for blockspace and support miners by stabilizing and increasing the fee-rewards, similar to what ASICs do to help the electrical grid. This could also boost lightning adoption, which is being slowed by the current near free on-chain transactions.