Dust is when the UTXO value is lower than the fee to spend it.
I would think of the utxo in terms of % of the network. You want your utxo to be a big enough % of the total that you don’t need to worry about getting priced out of spending.
It’s not easy by any means.
Do all medium / low value transactions eventually get priced out? Say I have a utxo that is currently $100 USD in value. Bitcoins value increases such that it is now $1000 USD in value. Is it possible that this becomes “dust” because it might cost $500 in transaction fees to spend it?
Is it also possible that my ability to stack bitcoin and consolidate it is is too slow such that the increase in transaction fees outpaces my ability to stack and consolidate utxos, such that all of my bitcoin de facto gets turned to dust and there was nothing I could do about it in the first place except be rich?
If you look at bitcoin price and bitcoin fees both are always trending up in fiat terms and always trending down in sats terms.
With that being said, at any given time, you want to have sufficiently large utxos in sats terms because fees are priced in sats.
The science of UTXO management is still very nascent.
