Replying to Avatar Vikingo

Can anyone give me any reasons as to why it is bad to consolidate other than privacy reasons? Even if privacy is a concern you can just send some to Lightning or another wallet and mix. I don’t see the issue with consolidating. If one does not consolidate tiny UXTO you might be completely fucked in a very high fee environment. What am I missing? Thanks #bitcoin
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the max 2y ago

Here's just one reason:

A strategic element in the privacy war is the uncertainty of coin ownership (by you as well as others). Ideally this should be increased as much as possible.

By solidifying (definitely re-confirming) your ownership of those UTXO's, consolidation transactions shrink down the volume of unattributed UTXO's on the blockchain, which indirectly degrades everyone's position, including your own - via increased vulnerability to chainalysis etc.

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Vikingo 2y ago

https://damus.io/note1wv9nsl3d3yz9dgktc6nfm3m4t707pn0k6fdq8zz8zzdd3xz78ewqfz6fld

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the max 2y ago

Oh - sorry, I assumed you meant the coin owner's privacy and I wanted to point out that there's also a community privacy element to it. But you're right, technically it's still privacy related.