Adam Back: Bitcoin JPEG Spam Undermines Monetary Role
Blockstream CEO Adam Back, an early Bitcoin pioneer, has criticized the rapid increase of Bitcoin JPEG spam on the network. He warns that image inscriptions using the Ordinals protocol, enabled by the Taproot upgrade, undermine Bitcoin’s core function as a peer-to-peer money system. More than 105 million JPEGs are now embedded in Bitcoin, up 20% since May, generating fees of around 7,000 BTC ($700 million). Back argues that despite this fee revenue, miners gain only an estimated 0.1% increase in profits. He believes Bitcoin JPEG spam images pose reputational risks and raise transaction costs for ordinary users. Supporters counter that permissionless use and higher fees strengthen the network as block rewards diminish. Back suggests miner outreach and wallet-level changes to discourage or redirect JPEG spam transactions. His stance reflects broader concerns over preserving Bitcoin’s monetary integrity amid growing use cases.
Neutral
While Adam Back’s criticism highlights valid concerns about network utility and user costs, the impact on market sentiment is likely neutral. Similar debates during the 2015–2017 block-size wars did not derail Bitcoin’s price trajectory; instead they reinforced the community’s governance model. JPEG inscriptions generate significant fee revenue, but their estimated 0.1% contribution to miner profits suggests limited influence on hashrate or security. Traders generally focus on broader catalysts such as regulatory developments and macroeconomic data. In the short term, renewed discourse around fees may cause minor volatility in transaction volumes. Over the long term, any protocol adjustments to discourage large inscriptions are likely to be incremental, preserving Bitcoin’s monetary narrative. Overall, this debate should not materially alter trading strategies.