What Are Bitcoin Tokens?
BRC-20 Tokens: Fungible tokens built using the Ordinals protocol on Bitcoin. Similar to ERC-20 on Ethereum but much more limited.
Ordinals / Inscriptions: Unique data (like NFTs) inscribed on individual satoshis.
Rising Popularity: These tokens gained traction in 2023–2024 due to a surge in on-chain experimentation on Bitcoin.
✅ Why Binance Adding Support Matters:
Mainstream Access: More users can now trade, mint, and hold these tokens easily.
Liquidity Boost: Binance’s massive user base brings significant liquidity and market depth.
Legitimization: Validates Bitcoin’s evolving use cases beyond just digital gold.
Competition with Ethereum: Boosts Bitcoin's position in the smart contract/token space, traditionally dominated by Ethereum.
⚠️ What to Watch:
High Fees: Bitcoin’s base layer isn’t optimized for high-volume token transactions.
Network Congestion: Token activity could increase block space competition.
Speculation Risk: Many BRC-20 tokens are experimental and volatile.