larger transactions will be done on-chain. plus, you can't open or close a channel on LN without using on-chain. i don't think it hurts incentives all that much. you could probably argue that it helps, because it allows bitcoin to scale, meaning people will continue to use bitcoin.

You'll likely find a lot of speculation around this, much of which is about the future price and usage of Bitcoin. Hard to answer this today since nobody can predict the future. Today though, mining incentives are as high as can be. Layer 1 Bitcoin usage is widespread and Ordinals have boosted mining revenues within the last year significantly. Whether you are a proponent of Ordinals or not, it is clear that this is one of the first use-cases that opens the door to on-chain storage becoming valuable property for more use-cases than just NFT's. #ordinals #nft #bitcoin #property