What is the Value of the Atomicals Protocol?

The Bitcoin Atomicals Protocol is a very complex protocol involving various Bitcoin technologies, with ARC-20 being one of the components of this atomic protocol. The BingX price analysis tool simplifies these complex explanations, making it easy for users to understand the project’s value and assess whether it is worth investing in.

Before explaining the role of ARC-20, let’s understand why Ethereum has become the second-largest blockchain in terms of application layer. Ethereum relies primarily on smart contracts, which are an upgrade from Bitcoin technology, as mentioned in the “Ethereum Token Price Analysis.” Applications spawned by smart contracts include DeFi, DApps, NFTs, GameFi, and others, including Layer 2 and ERC-20 applications. However, Ethereum has faced significant challenges after years of development, including centralization and technological changes.

The success of technological changes primarily depends on market adoption. Therefore, one of the most influential Ethereum standards in 2023 is Layer 2. Afterward, Ethereum has entered a period of fatigue, and user interest in Ethereum ERC-20 tokens for meme coins has started to decline. As Bitcoin continues to attract substantial hedge funds, Bitcoin developers are striving to replicate Ethereum’s various profitable applications, creating new narratives. This is the reason for the birth of BRC-20. BRC-20 allows users to easily issue tokens without the need for complex smart contracts. The Atomic Protocol, on the other hand, is a new protocol based on Bitcoin, built on the theoretical foundation of BRC-20. This protocol includes Lightning Network (Bitcoin Layer 2), storage, name services similar to ENS, simple DeFi functions, and GameFi features.

So, the potential of the Atomic Protocol is enormous.

What is the ARC-20 Protocol? How Does It Differ from BRC-20?

ARC-20 is one of the token issuance standards within the Atomic Protocol, and its purpose is similar to Ethereum’s ERC-20 but an upgrade from BRC-20. The difference lies in the fact that ARC-20 introduces the Lightning Network and CPU mining.

To create a token in the ARC-20 token protocol, in addition to minting like BRC-20, it also requires users to use their own computers and computational power to mine the tokens. This ensures that the distribution of tokens is very even, and tokens do not become concentrated in the hands of a few whales. This is also the biggest problem with Ethereum ERC-20 token issuance since after being listed on Uniswap, ERC-20 tokens can be fully owned with very little capital, making them highly centralized and manipulative of the token’s price.

Even so, a bunch of meme tokens based on ERC-20 tokens have a much higher market capitalization than BRC-20 tokens. For ARC-20 tokens, this represents a significant growth opportunity because it is an upgraded version of BRC-20 and addresses more pain points in token issuance and acquisition. If it weren’t for the significant overvaluation of ERC-20 tokens, the value of ARC-20 tokens would be severely underestimated.

What is the $ATOM Token?

There are two types of $ATOM tokens in the market: one on the Ethereum chain ($ATOM) and the other on the ARC-20 chain ($ATOM). If BingX lists this token, the token symbol might be ATOMARC20 to distinguish it from Ethereum’s $ATOM token.

ATOM is the first token on the ARC-20 chain, with a total supply of 21 million. Similar to BRC-20, during minting, only up to 1000 tokens can be minted at a time. Since minting relies on computer CPUs, if user CPU computers are slow, and there are many minting users, it may be challenging to secure tokens. The concept of mining significantly reduces the main network’s burden and does not require high gas fees like minting NFTs on ETH, which can sometimes reach 1 ETH.

The more you research the ARC-20 token protocol and the Atomic Protocol, the more you realize the benefits of discovering these protocols.

So, $ATOM tokens were mined very quickly in September and have reached a price of $0.70/ATOM, with a maximum purchase of 1000 ATOM tokens, totaling $700 USD.

With a total supply of 21 million, the current market capitalization of $ATOM is $14 million USD, compared to the market capitalization of BRC-20 tokens at 160 million SATS, which is ten times higher. It is estimated that in the 2024 Bitcoin bull market, there is a 70% chance that the price of ATOM tokens will increase 100 times, reaching $70 USD, making it the highest estimated price for ATOMARC20 tokens.

Risks of the Atomic Protocol and ATOM Token

Despite high evaluations, the token still carries high risks. Like the early issues with BRC-20, the token requires support from centralized exchanges; otherwise, it can only be purchased in units of 1000. This means that the minimum investment is $700 USD, and since the token is priced in BTC, if the BTC price rises, the equivalent USD price will increase.

Many of the features of the Atomic Protocol are quite basic and require a lot of infrastructure support. Currently, the Atomic Protocol’s trading websites are not official, and the development team has remained undisclosed, indicating that either the team is small or they lack funding.

Because of the release of the Atomic Protocol, other similar Bitcoin-based protocols will quickly begin to replicate. So, if the development of the Atomic Protocol is slow in the later stages, the token’s value may decrease.

How to Purchase ATOM ARC20 Tokens?

Many parts of Atomicals are currently being improved, including its wallet. Because Atomicals’ wallet also involves mining, downloading and installing the Atomicals wallet is a necessary step.

Step 1: Download and Install the Official Wallet

1. Visit the official wallet website: https://atomicalswallet.com
2. Download the Wallet Extension and unzip it.
3. Open Chrome Extension Developer Mode. 
4. Select the unpacked folder, Load Unpacked.
5. Follow the wallet creation steps, which are similar to MetaMask.

Step 2: Deposit BTC into the Wallet

As some wallets cannot recognize the Atomic wallet address, there may be transfer failures. It is recommended to use BingX, as BingX can recognize the Atomic wallet link.

1. Register a BingX account.
2. Click on BTC and purchase at least 0.02 BTC.
3. Enter the Atomic wallet address and transfer BTC to the wallet.

Step 3: Purchase Tokens

Atomic tokens have already been fully mined and can only be purchased on the token market. Even if mining is possible, the wallet must have at least 0.017 BTC to mine. With the current token market price of 0.02 BTC/1000 ATOM, the wallet needs a minimum of 0.02 BTC.

Some users choose to mint 600 ATOM tokens while mining, so be sure to check the quantity when purchasing.

Token purchase website: https://atomicalmarket.com

1. Select Marketplace.
2. Choose ARC20.
3. Select ATOM.

Important Note:

ATOM tokens can be used not only as the native token of the Atomicals protocol but also for gas fee consumption within Atomicals. It is recommended to keep the wallet for purchasing ATOM tokens separate from the wallet for purchasing other ARC-20 tokens to prevent accidental consumption of $ATOMARC20 tokens.

Disclaimer:

Buying cryptocurrencies carries high risks, and you may lose all your capital. If you incur losses from purchasing cryptocurrencies, you are responsible for them. The above content does not constitute any investment advice, and users are advised to conduct their own research (DYOR).