Elon Musk criticizes NFTs but inadvertently makes a case for the significance of Bitcoin Ordinals.
Elon Musk's suggestion that NFT projects "ought to embed the JPEG in the blockchain" was met with approval from numerous Bitcoin enthusiasts.
investograph 
During a podcast, Tesla CEO and billionaire Elon Musk publicly made fun of nonfungible tokens (NFTs) but inadvertently drew attention to the case for Bitcoin Ordinals, also known as Bitcoin NFTs.
Musk criticized NFTs, noting that they are essentially just a URL to a JPEG image and not truly on the blockchain. He suggested that NFT projects should at least embed the JPEG image directly on the blockchain to prevent the loss of the image in case the hosting company goes out of business.
On social media, Bitcoin enthusiasts pointed out that Musk's comments effectively summarized the use case for Bitcoin Ordinals. Bitcoin Ordinals, the cryptocurrency's version of NFTs, was introduced in January by developer Casey Rodarmor, made possible by the Taproot soft fork in November 2021.
Video of Elon Musk inscribed on Bitcoin’s blockchain via the Ordinals protocol. Source: Ord.io
Cryptocurrency analyst Will Clemente and other members of the crypto community praised Musk's comments and highlighted the growing number of Bitcoin Ordinals inscriptions on the Bitcoin blockchain.
Musk's criticisms of NFTs aren't new, as he previously mocked them in a meme in December 2021.
However, it's worth noting that not all NFT projects on Ethereum follow the same practice. For instance, Larva Labs moved its CryptoPunks NFTs onto the Ethereum blockchain in August 2021 after initially being off-chain for the first four years. This move was aimed at ensuring the long-term survival of the Cryptopunks images and attributes.
Metagood, the team behind Ethereum-native OnChainMonkeys, also announced plans to migrate its NFTs to Bitcoin, citing Bitcoin's superior design for decentralization and security.
While Bitcoin Ordinals and other Bitcoin NFTs are gaining traction, Ethereum still dominates the NFT space, accounting for 84% of all NFT trading volumes, according to CoinGecko data from June. Bitcoin and ImmutableX hold the second and third positions with market shares of 11% and 2.5%, respectively.
