Bitcoin Runes Explained!! What They Mean for BTC & How To Find!

On the 20th of April the Bitcoin Haring Happened but that wasn't the only thing That went down on the blockchain that Day the Bitcoin harving simultaneously Introduced a new token standard called Runes which are basically meme coins on Bitcoin as you can imagine this means They are insanely speculative Speculation and as such could have 100x Potential so today we'll be taking a Close look at runes how they work how They could affect BTC price and how you Can find the most promising Ones before we go on I need to let you Know that I am not a financial adviser And nothing in this video should be Considered Financial or investment Advice this video is purely for Entertainment and educational purposes Also note that some of the team here at The coin Bureau hold runes in their Personal portfolios most of us also hold BTC but that well probably won't come as Much of a surprise regardless we promis To remain objective and unbiased in our Review so then just what the heck are Runes well runes is the latest token Standard to be deployed on bitcoin the Protocol went live when Bitcoin hit Block number 840,000 the same block that Triggered bitcoin's all important Haring Event now the runes protocol was created By Casey rmore and if that name rings a Bell that's because Casey is the same

Chap who brought us Bitcoin ordinals and Inscriptions in case you need a Refresher there are a few differences But essentially ordinals are like nfts You see on platforms like ethereum but Well they're on bitcoin the key Difference is that nfts aren't typically Stored on chain in the words of none Other than Elon Musk but I mean nfts the Funny thing is that nft is not even on The blockchain it's just a URL to the to The the jpeg if you hold nfts then this Is a bigger deal than you might think Because once the company holding that Jpeg ceases to exist so too does your Precious image Food For Thought on the Other hand an ordinal data is inscribed On an individual Satoshi hence Inscriptions and doesn't rely on a Third-party storage service like Amazon's AWS for example in instead Everything is kept completely onchain Where it stays forever in fact that's Why inscriptions are sometimes referred To as digital artifacts they're pretty Much what nfts always aspired to be Ordinals follow what's referred to as Ordinal Theory where individual Satoshi Are numbered in the order in which they Were minted and this opens up the Possibility to pinpoint and work with Specific individual sets but you may may Be thinking well what's the bloody point In that it's all the same in it well not

Really you see once you can identify When a SAT was minted you open the Floodgates to the Deens waiting to Collect them that's because each Satoshi Represents a moment in time SATs minted During key Milestones such as the Harving or culturally significant events Like the 10K BTC Pizza buy are given Different Rarities and as such have Different value vales and by the way if You're enjoying the video so far smash That like button to give it a boost And Subscribe to the channel and ping that Notification Bell so as you catch our Next one too now you may recall that Ordinals were a controversial topic Within the Bitcoin Community with many Bitcoin Maxis seeing them as Inappropriate well that hasn't stopped Casey from introducing yet another Disruption to the Bitcoin ecosystem and This one's probably even more Controversial than the last case himself Is no stranger to All Things weird and Wonderful and while some of his uh work Is so controversial that we can't even Mention it on this channel he does seem To genuinely care about bitcoin's future That's not to say though that every idea He has is a good one in fact on his very Own hell money podcast he explained that Runes is maybe the worst idea he's ever Had before going on to say quote runes Are shitcoins for Bitcoin points for

Honesty I suppose he then explained that Bitcoin already has shitcoins in the Form of br20 tokens but runes are a more Efficient shitcoin implementation we'll Come back to why that is in just a Moment the thing is the runes protocol Isn't intended to be anything more than A hub for Deens to ape into speculative Assets on the Bitcoin Network Casey has Actually been refreshingly candid about This making it perfectly clear that Runes aren't the future of finance and Don't offer any real use case outside of Gambling this is by Design the reason Casey invented runes was to lure Deens Away from other platforms with the Intention of bringing over more Liquidity and increasing fee revenue on Bitcoin this begs the question then how The runes actually work and why should Anybody care now whereas ordinals are Based on non-fungible tokens runes Provide a way to instead trade fungible Tokens the runes protocol consists of a Variety of names that can easily become Intertwined if you're not careful for Instance there's the runes protocol run Stones and Rune tokens not confusing at All the runes protocol and Rune tokens Are pretty self-explanatory and in case You are wondering runestones is the name Given to the protocol messages that con Contain a set of instructions to the Rune tokens that's not the only thing

You need to wrap your head around However there's also etching and minting Put simply etching refers to the process Of creating and naming a rune while Minting refers to claiming one when you Etch a rune you're reserving the name For that Rune and setting a few Parameters these parameters include how Many units you get per mint the number Of min allowed and a time frame measured In blocks of how long they can be minted For you can even do a sort of premine Where you take an initial cut of the Allocation now it's important to note That any fees on runes are paid in BTC Now when it comes to naming your runes This is where things get really Interesting each Rune name is unique and Cannot be duplicated giving runes unique Names was actually a subject of Controversy in the community but Casey Says the alternative would have been Non-human readable names that can be Duplicated to avoid everyone etching all The cool short token names right away The protocol only allows a name with a Minimum of 13 characters to start with These could be any letters from a to zed And any numbers from 1 to 26 you can Also have emojis just so long as they Only take up one Unicode character to Make these long names more readable to The human eye you can also include Spaces that sort of look like bullet

Points notably the protocol ignores These spaces so if you had a rune called Say guy. loves. bread nobody could then Reserve the name guy loves bread without The dots then every 4 months a new name With one fewer character is unlocked so In April the minimum is 13 characters Then in August it'll be 12 then in DEC Member it's 11: you get the picture this Process will continue until the next Harving event in 4 years time now like Ordinals runes inherits bitcoin's key Features immutability security Decentralization all that good stuff However it's worth noting that runes are Completely unrelated to the ordinals Protocol a deliberate choice to keep Runes simple and avoid them taking on Ordinal as baggage the runes protocol Also inherit bitcoin's utxo model for Reference utxo stands for unspent Transaction output in simple terms you Can think of utxos as the spare change In Satoshi you have left over from a Transaction it's these little pockets of Satoshis that runes live on many people Believe that bitcoin's utxo model is Superior to account-based models seen on Other chains like ethereum with some Saying this is where ethereum falls Short cas agrees with this sentiment Mainly because utxos are completely on Chain whereas account base models aren't And not only darun inherit bitcoin's

Utxo model they also take it one step Further that's because as well as being Able to carry BTC Rune utxos can also Carry any combination of Rune tokens With them so for example a single Transaction could contain some BTC 100 Of Rune a 50 of Rune B and say 1,000 of Rune F this is one of the reasons why Many bitcoiners believe that runes are More appealing than BRC 20s that's Simply because brc2 incentivizes the Creation of utxos but does nothing to Incentivize actually spending them what This means is that BRC 20s create a lot Of junk which in the long run will have A negative effect on the network and by The way if you want to learn more about BR c20s we'll leave a link to our video That explains what they are in detail Anywh who runes picks up where brc2 is Left off by putting those utxos to work Put differently runes can be seen as a Cleaner way to bring fungible tokens to Bitcoin acting as a harm reduction Protocol okay so now that we understand What runes are and how they work let's See how you can bag some for yourself Now before we go any further a word of Caution getting runes can be expensive And could be very risky expensive Because transaction fees are through the Roof at the moment and risky because you Could lose that fee if someone front Runs you keep in mind that you're

Competing not only with normal users but People running nodes that have more Computing power and are much faster than You so if you want to Mint your own Rune Then the first thing you need is a rune Aware wallet we recommend using xers for This it's been downloaded half a million Times on the Chrome web store and 100,000 times on Google's Play store We'll leave the official link below in The description so once you've Downloaded that and set it up you're Ready to go if you want to etch or mint Your own runes head on over to luminex Again link will be in the description For that too once you're there click the Login button in the top right and Connect your xers wallet once you've Done that head back to the homepage You'll see two buttons click the one That says mint runes you'll see a list Of runes you can mint and you can even Use the search bar at the top to find One that contains a word or phrase you Think might have potential once you Found a rune you're happy with click on It you'll then see a page detailing the Token splits Pro tip pay attention to This and beware of any whales holding an Abnormally High count if everything Checks out click the mint button in the Top right corner now this next page is Where you select how many runes you want To Mint you can also see how many mints

Are pending again take this into Consideration you'll see two buttons Below the slider pre-split and autosplit Basically you can split your utxos ahead Of time with the pre-split method which Is faster than the auto option the Caveat is that pre-splitting has its own Transaction fee and auto is obviously More hands-off and automated due to how Competitive run are at the moment we'd Recommend pre-splitting where possible And spending a little more on Transaction fees to get your transaction Processed faster after all this is the Bitcoin blockchain is not exactly Renowned for being quick but rather than Minting somebody else's runes maybe You'd prefer etching in order to create Your very own instead to do this click The tab labeled ET here you'll see a Series of parameters you can enter to Create your very own r collection you Can enter your chosen ticker set the Divisibility by entering the decimals Enter a symbol for your token the Maximum Supply and how many runes can be Obtained per mint again we'd advise Going for those faster fees perhaps Though etching and minting aren't your Thing and you'd rather just buy and sell On a secondary Marketplace if that Sounds like you then head on over to Unisat we'll leave the official link Below once you're there connect your exe

Wallet and click on Marketplace then Runes this will reveal a list of runes You can consider or alternatively you Can click the runes button next to the Home icon to search for desirable names Just like earlier once you find one you Like you can buy packets of runes in set Allocations it's important to note here That you can't buy individual Rune Tokens out of a pack so if you buy You're agreeing to purchase however many Runes are listed And if you want to sell your tokens you Can simply click my Assets in the top Right and from there you should see the Assets you have available in your wallet That you can list on the marketplace Awesome so with that out of the way you Might be wondering just how much future Potential do runes actually have anyways Well it's still very early days but it Seems that runes are here to stay as far As shitcoins go runes are a pretty solid Implementation and given the hype runes Managed to generate before they even Went live with the harving we could Expect to see them hit some crazy Valuations consider that the current Market cap of Bitcoin is $1.2 trillion At least at the time of shooting if Runes can capture just 1% of this that Gives them a value of $1.2 billion and To be honest 1% seems like a very Conservative estimate that's because

It's not just retail DG's feeling the Fomo there's also been a mad rush for Sex to get runes listed for instance Gate.io supported runes within just 3 Days of them launching this is hardly Surprising because gate.io was also the First to list a the first and largest Ordinal project out there okx has also Jumped on the bandwagon now offering Runes on its web 3 Marketplace and by The way if you want to create an okx Account then you have to check out the Coin Bureau deals page you'll get Trading fee discounts of up to 40% and Signup bonuses of up $20,000 for new Users the link to that is in the Description we also did a full guide to Using the exchange and we'll leave a Link to that down there as well anywh Who another platform betting on the Long-term potential of runes is Magic Eden who announced they'd have support For the protocol ready for the 23rd of April they actually ended up releasing It a day early which suggests they are Bullish AF I mean why wouldn't they be After all their early bet on ordinals Propel magic Eden to the top of the Rankings supporting runes early will Only help strengthen that position Considering that runes temporarily Pushed Bitcoin fees to new highs shows That the demand is clearly there for Reference the average transaction fee on

The day of the harving was $127 you'd have been forgiven for Thinking you were on ethereum however The hurdle Run's faces now is a clunky User experience as fun as the names are And as exciting as as etching your very Own Rune may be there's no denying that It's not very straightforward Particularly for non- crypto natives This clunkiness could end up putting a Lot of people off particularly those With PTSD from the ux of BRC 20s however if people do end up finding Runes more accessible and easier to Interact with they could become the new Goto standard for fungible tokens on Bitcoin as Casey says quote if runes are Successful they'll drain liquidity Technology and attention away from other Cryptocurrencies and bring it back to Bitcoin and while runes are basically Mem coins at this stage there is a Chance that they could become something More in the future in an interview on The bankless podcast Casey spoke about The possibilities of someone using the Runs protocol to create a successful Bitcoin rollup solution which could lead To the introduction of defi markets Dealing with anything from me coins to Stable coins now this might all sound Pretty bullish but there are a few Things you should consider before you go Racing ahead to etch your own Rune in

Case it wasn't already clear runes are Incredibly risky much like their mcoin Counterparts runes are currently being Driven by pure speculation sure that Means they have 100x potential but they Can just as easily fall to zero this Risk is exacerbated when you consider That runes are essentially brand new What this means is that they haven't Been battle tested although there was a Lot of test net activity runes are much More exposed now that they're out in the Big bad World a malicious bit of code or An undetected bug could completely break The runes protocol and Destroy its Entire ecosystem while runes are off to A good start with exchange support There's still a lot of exchanges out There not yet carrying them if there's Not much more uptake in support from Exchanges or if exchanges cease their Support for whatever reason then runes Will struggle to keep up momentum this Will make it much more difficult for Runes to compete with meme coins on Other blockchains those mem coins on Networks like salana will have no Difficulty in lapping up that liquidity If runes start to look weaker and with The fees DG are paying on bitcoin they Won't be hanging around for long if There are better opportun ities on Chains with fees that are a fraction of That cost there's also competition from

BR c20s sure runes appears to be the More Superior option but brc's also have First mover Advantage this alone means That runes will have a hard time getting Ahead and will need to be successful if They want to stay there not to mention That just trying to explain runes to Someone can get confusing at times but If you were to try explaining be rc20 to Them it's more likely they'll understand That one first after all brc2 has the Obvious similarity to erc20 which just So happens to be the largest token Ecosystem in all of crypto but it's not All bad far from it in fact you see Runes could also have some profound Impacts on bitcoin both the asset and The network for starters the success of Runes will bring in additional fee Revenue to bitcoin this is exactly what Casey intended when he created the Protocol in the first place recall that When you interact with runes all fees Are paid in BTC that's because the Speculation and Novelty around runes Could bring users from other chains and Protocols over to the Bitcoin Network This could bring in some serious money To bitcoin consider that the total Market cap for mem coins is sitting at Around $50 billion at the time of Shooting capturing just 5% of that would Bring $2.5 billion to runes and this Influx of new users will also create a

Much higher demand for Bitcoin block Space this is of course beneficial for Bitcoin security as more miners are Incentivized to include transactions in Blocks the strength of the network Naturally increases and with the higher Transaction fees from all the hype and Competitiveness around runes there's Even more financial incentive which Translates to more miners not only is That good for bringing new miners to Bitcoin it also helps to keep Established miners on board there have Been concerns that post harving some Miners won't be able to keep the lights On and will be forced offline due to the Decreased block reward well runes could Very well present a solution to that Gaping hole in bitcoin's security budget As for BTC the asset meanwhile this one Is perhaps more obvious as the demand For runes increases so too does the Demand for BTC if that demand can be Sustained then btc's price could see Some impressive gains in a similar Fashion to Soul's price action after the Recent mcoin Mania on salana and as we Mentioned earlier the demand for runes On exchanges seems to suggest that They're set to do pretty well for the Foreseeable future if that is the case Then those ETFs might not be the only Thing propelling BTC to new all-time Highs indeed if the runes experiment is

Successful they could potenti become one Of the most important developments in Bitcoin's History and that's all for today folks But we want to hear from you now are you Bullish on runes let us know your Thoughts in the comments below and while You're there why not smash that like Button and subscribe to the channel also Be sure to Ping that notification Bell So you don't miss our next release and If you're looking to trade cryptos on an Exchange then be sure to check out the Coin Bureau deals page where we have Some of the best deals in all of crypto You'll find sign up bonuses of up to $60,000 and trading fee discounts of up To 60% we also have exclusive deals on Hardware wallets for you to keep it all Stored safely okay thank you all so much For watching and we will see you in the Next one this is Guy signing off [Music]

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