The inscriptions sector has emerged as one of the most talked-about narratives in 2025, capturing attention almost immediately after its debut. I’ve written several in-depth analyses exploring the mechanics, potential, and risks behind Bitcoin-based asset issuance through inscriptions. Back in August, I boldly stated: “To restore Bitcoin’s glory, inscriptions must rise to the challenge.”
This past weekend, the market bore witness to that surge. The explosive growth of tokens like ORDI, SATS, and ETHS—projects I’ve previously analyzed—has turned early adopters into winners. Many readers who followed those insights have already reaped substantial rewards. Meanwhile, others hesitated, overwhelmed by complexity or skepticism, and now face regret.
A common question flooding my community: “V Teacher, is it too late to get into BRC-20 now?” While I could give a simple yes or no, my philosophy has always been to teach people how to think—not just what to do. So let’s break it down.
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Why I Believed in Inscriptions Early On
My ORDI, SATS, and ETHS positions were all manually acquired—what we call “hand-mined”—and have delivered strong returns. But why did I back this trend from the start?
For years, Bitcoin has been viewed primarily as digital gold: a secure, decentralized store of value. Few imagined it could support native asset creation. In contrast, Ethereum’s rise wasn’t just about ETH’s utility—it was about smart contracts and programmable assets. Ethereum became a modular platform, where developers stack protocols like Lego bricks to build DeFi, NFTs, GameFi, and SocialFi applications.
Each new asset issued on Ethereum increases demand for ETH—gas fees, staking, liquidity provision—all fueling a flywheel effect that drives both ecosystem growth and price appreciation.
Now consider this: Ethereum’s market cap sits around $220 billion, supporting hundreds of billions in on-chain assets. Bitcoin? Over **$690 billion**—and until recently, nearly all of that value was locked in BTC itself.
Imagine if Bitcoin could unlock even a fraction of Ethereum’s composability. The implications would be staggering.
While full smart contract functionality on Bitcoin remains theoretical (with projects like BitVM still in early research), inscriptions represent the first real step toward asset issuance on Bitcoin. They may be primitive—like a crawling infant—but every movement forward is significant.
That’s the core thesis:
- Native asset issuance on Bitcoin
- First-mover protocol (BRC-20)
- High visibility and media momentum
- Simple user interaction model
These factors alone justified my early position in ORDI. Others like SATS and ETHS require deeper technical analysis—but that’s a discussion for another time.
Can You Still Invest in BRC-20 Now?
With top-tier inscription tokens already up thousands or even tens of thousands of percent, we can no longer afford to only celebrate the upside. Strength determines short-term momentum; weaknesses determine long-term survival.
Retail complaints—high fees, clunky UX—are not the real risks. The critical flaws lie beneath the surface, voiced by Bitcoin’s core developers:
- Must not alter Bitcoin’s base protocol
- Must not degrade network performance
BRC-20 fails both tests.
It creates network congestion, encourages dust spam attacks, and contradicts the principles held sacred by Bitcoin purists. More technically, while inscription data lives on-chain, the indexers that interpret them are centralized. Your token’s existence depends on third-party services—if they go down, your assets become unreadable.
Sound familiar? It’s like buying an NFT in a closed game economy. If the developer shuts it off, your digital item becomes meaningless.
This centralization is a critical technical limitation—not just an inconvenience.
The Real Drivers Behind the Rally
Let’s be honest: this latest surge wasn’t purely organic.
First, it rode the wave of Bitcoin’s own price explosion, crossing $110K amid strong macro sentiment and institutional inflows. As the most visible narrative in Bitcoin’s ecosystem, inscriptions naturally followed.
Second, early pumps were dominated by highly concentrated tokens—SATS, BTCS—often controlled by whales. ORDI’s breakout coincided with Binance adding API support, not organic demand.
When price action is led by insiders and amplified by hype, caution is warranted.
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My Move: Strategic Exit, Not Panic Sell
I’m gradually exiting my inscription positions over the next 3–7 days. Not because I’ve lost faith in Bitcoin’s asset future—but because I believe better solutions are coming.
The current model is unsustainable. It’s time to shift focus from speculation to next-generation infrastructure.
The Future: Taproot Assets (Taro)
After extensive research, our team has identified Taproot Assets (Taro) as the most promising evolution of Bitcoin-native tokens.
Developed by Lightning Labs, Taro leverages:
- Taproot upgrades
- UTXO model
- Lightning Network
It enables fully on-chain issuance and transfer of non-BTC assets—like stablecoins or digital collectibles—while routing transactions off the main chain via Lightning.
This solves the core issues:
✅ No network bloat
✅ No dust attacks
✅ No protocol changes
✅ True decentralization
Because transfers occur over Lightning, Taro avoids congestion while expanding Bitcoin’s utility. It enhances Bitcoin’s payment functionality, not just its collectible appeal.
And critically—Taro aligns with Bitcoin’s upgrade roadmap. Its lead developer, Roasbeef, is one of the few people who has personally contributed to both Bitcoin Core (BTCD) and LND. His deep integration with the developer community ensures credibility and long-term viability.
In short: Taro could be what BRC-20 wants to be—decentralized, scalable, and sustainable.
Frequently Asked Questions
Q: Are inscriptions dead after this rally?
A: Not entirely. Some will persist as digital artifacts or niche collectibles. But as a scalable asset layer, BRC-20 faces structural limitations that hinder long-term adoption.
Q: Is Taproot Assets live yet?
A: It’s in active development and testing. While not yet mainstream, early adopters and developers are already experimenting with testnet deployments.
Q: Should I sell all my inscription holdings?
A: That depends on your risk tolerance and investment horizon. Personally, I’m taking profits now to redeploy into more sustainable layers like Taro and Lightning-based innovations.
Q: Can Bitcoin ever compete with Ethereum on DeFi?
A: Not directly—and that’s okay. Bitcoin’s strength lies in security and stability. Its future isn’t about replicating Ethereum but enabling secure, simple asset transfers at scale via layers like Taro.
Q: Why trust Taro over other Bitcoin layer solutions?
A: Because it’s built by Lightning Labs—the same team behind the widely adopted Lightning Network—and it operates within Bitcoin’s consensus rules without forking or bloating the chain.
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Final Thoughts
The inscriptions wave proved one thing: there’s massive demand for native assets on Bitcoin. But popularity doesn’t equal sustainability.
I’m stepping back not out of fear—but with clarity. The future belongs to protocols that enhance Bitcoin without breaking it. And right now, Taproot Assets stands as the most credible path forward.
This isn’t the end of Bitcoin’s evolution. It’s just entering a smarter phase.
Keywords: Bitcoin inscriptions, BRC-20, Taproot Assets, Lightning Network, Bitcoin ecosystem, ORDI, SATS, Taro