I understand they are paying very high fees to miners. In my mind I view the ordinals as someone who has the equivalent of a hundred dollar bill, goes to the bank and pays to get the $100 in pennies. Then draws mustaches and dicks on the pennies, creating "art". Is this accurate? Are the "pennies" still spendable?

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Not without paying pools out of band fees which surpass the values of those outputs.

Gotcha, thanks!