The Complete Guide to Going from Zero to Mining Behind the Explosive Popularity of Bitcoin Inscriptions

What Exactly Are Bitcoin Inscriptions? A Guide to the New On-Chain Creativity

The smallest unit of Bitcoin is called a satoshi, and 1 BTC can be divided into 100 million satoshis. The Ordinals protocol (launched in January) introduces an innovation: it assigns a unique serial number to each satoshi, much like giving each particle on the Bitcoin network an identity.

Based on this system, developers can write content—text, images, videos, audio, etc.—onto satoshis. This process is called “inscribing,” and the digital assets created afterward are known as Bitcoin inscriptions (or BTC NFTs).

The power of this mechanism lies in permanent on-chain data. Unlike Ethereum’s ERC-721 standard, where metadata is often stored on IPFS, Arweave, or centralized servers (which depend on external systems), Bitcoin inscriptions, once written, will never disappear as long as the Bitcoin network exists. This is true “permanent deletion” avoidance.

Thanks to Bitcoin’s 4MB block storage capacity, the current market mainly features pixel art inscriptions. By the end of March this year, the total number of inscriptions exceeded 600K, with explosive growth in April.

Serial Number Mechanism Decides Everything: Why “First Mover Advantage”

Here’s a key game point to understand.

Bitcoin inscriptions follow the “first come, first served” principle—if multiple users upload the same content (e.g., all inscribe the word “Punk”), the earliest serial number is recognized as the official valid inscription, gaining consensus and premium value. Later inscriptions, although visible on-chain, are considered “pirated” by the community.

What does this mean? It means the higher the Gas fee paid, the earlier it gets included by miners, the earlier the serial number, and the higher the asset value.

You can imagine the scene last April during the BRC20 inscription craze—Gas fees on-chain once soared to $700 per transaction. Everyone was racing to be faster. Those unwilling to pay the high fees not only failed to mint but also lost their Gas fees. Many paid this “tuition.”

Two Ways to Obtain Bitcoin Inscriptions: Minting vs. Buying

Path 1: Mint Yourself

If you want to create inscriptions from scratch, there are two options:

• Run your own node for inscription (requires technical skills and hardware investment, higher barrier)
• Use third-party platforms like Inscribe.ordswap.io, Unisat.io, etc., to upload files, images, texts directly

Using third-party tools is straightforward: select content to inscribe → input recipient wallet address → system generates payment code → complete payment via third-party → inscription is automatically sent to your wallet.

Currently, minting a .sat domain costs about $9 in Gas fees. Some even inscribe personal declarations—eternal digital farewell messages that no one can delete.

Path 2: Purchase on Marketplaces

This is the preferred method for ordinary users. Mainstream marketplaces include Ordinals Wallet, Ordinals Market, Ordswap, Magic Eden, OpenOrdex, etc., with a relatively mature ecosystem.

Market examples of popular projects:

• Bitcoin Punks: The first project to upload Ethereum CryptoPunks’ bytes onto the Bitcoin chain, with a total supply of 10,000. It has traded a total of 8,500 ETH, with a current floor price of 0.083 BTC (about $2,200).
• Bitcoin Frogs: The most traded in the past 24 hours, total of 10K, with a total transaction volume of 54.7466 BTC, and a floor price of 0.0034 BTC. No obvious signs of hype, but it has gained some niche popularity—very interesting.
• Bitcoin Apes: Floor price of 0.0375 BTC, total of 100K. It’s important to note that this project has no relation to Ethereum’s bored apes or Yuga Labs.

When buying, you can use Bitcoin-specific wallets (like Bitcoin, Xverse, Unisat, Hiro, etc.), or even without connecting a wallet—just input the recipient address on the transaction page, complete payment via third-party, and the NFT will automatically transfer to your wallet—much more user-friendly than Ethereum.

The Real Risks Behind the Lucrative Stories

Last year, an Ordi inscription’s Gas fee skyrocketed from $7 to a current price of $9.7, over a 1000x increase. Early adopters indeed made huge profits. But there are several risks you must be aware of:

Risk 1: Poor Liquidity + No Consensus Means Wasted Investment

The Bitcoin inscription ecosystem is still far from mainstream. Most projects have shallow trading depth, and it’s common to be unable to sell. Without community hype and consensus, your investment might be a total loss. This is a different scale compared to Ethereum NFT markets.

Risk 2: Failed Gas Payments Are Not Refunded

When the network is congested, paying high Gas increases success chances; paying low Gas may result in failed minting, and Gas fees are not refunded. The BRC20 craze last year proved this “painful lesson.”

Risk 3: Steep Learning Curve

Bitcoin inscriptions involve concepts like inscriptions, serial numbers, UTXOs, Taproot, etc. Without proper research, you might spend unnecessary Gas fees. In other words, paying tuition is unavoidable.

Risk 4: Might Be Just a Short-Term Trend

Bitcoin inscriptions could be a new opportunity for accumulation, or just a fleeting cycle. No one can give a definitive answer.

Bitcoin Inscriptions vs. Ethereum NFTs: Who’s More Worth Paying Attention To?

Compared, Bitcoin inscriptions have advantages in data permanence and censorship resistance; disadvantages include an immature ecosystem, weaker liquidity, and higher learning costs. Ethereum NFTs, on the other hand, boast a thriving ecosystem but rely on centralized storage.

If you’re interested in long-term holding and collectible value, Bitcoin’s unerasable feature is uniquely attractive. If you prefer trading flexibility and quick liquidity, Ethereum’s ecosystem might be more friendly.

Ultimately, this space offers both opportunities and risks. A rational judgment based on a thorough understanding of the mechanisms is essential.