With UTXO consolidation there is a very real privacy concern. Remember, when consolidating UTXOs you are linking them together. Observers of the chain now know they were owned by the same entity.

Regarding UTXO size, this chart should proof helpful:

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This is a cool chart! I know everyone thinks sat/vB is going to the moon but probably not. 1 sat/vB has been going up in fiat value for 16 years now and the mempool just cleared

There will be ebbs and flows.

You don’t want to be caught in an emergency during a high volume period and not be able to spend your funds.

Ideally it's having a good balance of privacy and spendable Bitcoin. No point having it if it's hard to use in an emergency. Thanks for your input nostr:npub19kv88vjm7tw6v9qksn2y6h4hdt6e79nh3zjcud36k9n3lmlwsleqwte2qd

Well, if you consolidate a bunch of no-KYC addresses into a new no-KYC address what does it matter?

Even if your identity isn’t explicitly linked to them, people you’ve interacted with those funds will be able to link them together.

No-KYC is great but doesn’t mean you should neglect UTXO management.

What if those UTXOs were first on-chain, then swapped to lightning in another UTXO, back to on-chain again. I hope that makes it very difficult to find out the identity.

I built an open source app to help people understand the tradeoffs of consolidation amounts.

https://livewallet.space/

https://m.primal.net/KKpZ.mov

This is v cool

Excellent is an under statement.

Play around here https://livewallet.space/#/sandbox to find your own optimal consolidation amounts.