Digital Genesis Cat sold at Sotheby's for $254 thousand: Bitcoin NFTs in the spotlight

An event has occurred in the world of digital collections and non-fungible tokens (NFTs) that has attracted the attention of both specialists and the general public.  An image of a digital cat called Genesis Cat, created by artist Francisco Alarcona (FAR) and released by Taproot Wizards, sold at Sotheby's for $254 thousand. This event was one of the most significant in the history of NFT sales on Bitcoin, highlighting the potential and influence of this format  for art and collecting.

 Genesis Cat became the basis of the 3333 Quantum Cat series from Taproot Wizards and was sold for the first time.  This collection was created in honor of a proposal to improve the Bitcoin protocol known as OP_CAT.  The sale price of the lot significantly exceeded its initial estimated value of $15,000 to $20,000, indicating the high demand for digital collections and their importance in contemporary art.

 The emergence of a slew of Ordinals, sometimes referred to as “Bitcoin NFTs,” has created a buzz around non-fungible tokens similar to the one seen in 2021 on the Ethereum network.  Transactions with Ordinals contributed to the congestion of the Bitcoin blockchain and caused discontent among some market participants due to a drop in the network capacity of the first cryptocurrency.

 However, despite the potential negative impacts on the network, such as increased fees and reduced throughput, miners' incomes have increased amid the surge in activity associated with the issuance of Bitcoin NFTs or Ordinals.  Thus, in the first two weeks of November 2023, which saw the release of a large number of tokens, commissions on the Bitcoin network increased sixfold.  This highlights the dynamism and potential of the Bitcoin NFT market, as well as the format's impact on the economics and culture of cryptocurrencies.

 The sale of Genesis Cat at Sotheby's highlights the importance and influence of NFTs in contemporary art and collecting.  This event demonstrates how digital collections can achieve high prices and attract the attention of a wide audience, including renowned auction houses and collectors.  At the same time, it also highlights the need to further develop and optimize the Bitcoin blockchain infrastructure to ensure the stability and efficiency of NFT-related transactions.