What do we mean when we talk about consolidating UTXOs and what is the point of doing so?
Also what is the general thinking about actually breaking up holding into smaller denominations for things like inheritance and proactively obscuring total stack size in preparation for the “spending #bitcoin” future?
#Plebchain
#Sunday
#DeepThoughts
I was reading about this the other day. In a high fee environment you’d struggle to be able to spend SATS because fees would take up a lot of the transaction. Search southern bitcoiner on YT. He recently did a vid on consolidating UTXOS
You want your transactions to have the fewest inputs and outputs possible to lower your fees.
Got an quick link that explains what to do here...
Each incremental UTXO creates more data which increases fees. In a world where bitcoin is more valuable, higher fees hurt more.
For instance, I know some people who don’t create a UTXO for anything less than a million sats.
